Cloudflare’s (NET) “Sell” Rating Reiterated at Guggenheim

Cloudflare (NYSE:NET)‘s stock had its “sell” rating reiterated by Guggenheim in a research report issued on Tuesday, Benzinga reports. They presently have a $50.00 target price on the stock. Guggenheim’s price target points to a potential downside of 36.93% from the company’s current price.

A number of other brokerages have also recently commented on NET. DZ Bank raised shares of Cloudflare from a “hold” rating to a “buy” rating and set a $95.00 target price on the stock in a report on Tuesday, May 7th. Mizuho dropped their price objective on shares of Cloudflare from $95.00 to $88.00 and set a “neutral” rating on the stock in a research note on Friday, May 3rd. Robert W. Baird dropped their price objective on shares of Cloudflare from $100.00 to $94.00 and set an “outperform” rating on the stock in a research note on Friday, May 3rd. Needham & Company LLC reissued a “buy” rating and issued a $135.00 price objective on shares of Cloudflare in a research note on Friday, May 31st. Finally, TD Cowen dropped their price objective on shares of Cloudflare from $117.00 to $110.00 and set a “buy” rating on the stock in a research note on Friday, May 3rd. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and ten have issued a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $90.96.

Cloudflare Stock Performance

Shares of Cloudflare stock opened at $79.28 on Tuesday. The firm’s fifty day simple moving average is $77.01 and its 200-day simple moving average is $85.35. The stock has a market capitalization of $26.94 billion, a price-to-earnings ratio of -149.58 and a beta of 1.08. Cloudflare has a 12 month low of $53.88 and a 12 month high of $116.00. The company has a debt-to-equity ratio of 1.61, a current ratio of 3.51 and a quick ratio of 3.51.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, May 2nd. The company reported ($0.03) EPS for the quarter, beating analysts’ consensus estimates of ($0.05) by $0.02. The business had revenue of $378.60 million for the quarter, compared to analysts’ expectations of $372.93 million. Cloudflare had a negative net margin of 13.10% and a negative return on equity of 12.78%. As a group, equities analysts forecast that Cloudflare will post -0.19 earnings per share for the current year.

Insider Activity

In related news, insider Douglas James Kramer sold 3,000 shares of the stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $97.16, for a total transaction of $291,480.00. Following the completion of the sale, the insider now owns 205,238 shares of the company’s stock, valued at approximately $19,940,924.08. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of the stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $97.16, for a total value of $291,480.00. Following the completion of the sale, the insider now owns 205,238 shares of the company’s stock, valued at $19,940,924.08. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carl Ledbetter sold 8,030 shares of Cloudflare stock in a transaction that occurred on Wednesday, June 26th. The shares were sold at an average price of $79.89, for a total transaction of $641,516.70. Following the sale, the director now owns 1,084,364 shares in the company, valued at approximately $86,629,839.96. The disclosure for this sale can be found here. Insiders sold a total of 700,796 shares of company stock valued at $56,919,603 in the last 90 days. 12.83% of the stock is currently owned by insiders.

Institutional Trading of Cloudflare

A number of hedge funds have recently made changes to their positions in NET. Cigna Investments Inc. New grew its position in shares of Cloudflare by 4.2% during the first quarter. Cigna Investments Inc. New now owns 3,178 shares of the company’s stock worth $307,000 after buying an additional 129 shares in the last quarter. Yousif Capital Management LLC grew its position in shares of Cloudflare by 4.0% during the fourth quarter. Yousif Capital Management LLC now owns 3,399 shares of the company’s stock worth $283,000 after buying an additional 130 shares in the last quarter. Kingswood Wealth Advisors LLC grew its position in shares of Cloudflare by 0.5% during the fourth quarter. Kingswood Wealth Advisors LLC now owns 27,358 shares of the company’s stock worth $2,278,000 after buying an additional 132 shares in the last quarter. Quent Capital LLC grew its position in shares of Cloudflare by 8.1% during the fourth quarter. Quent Capital LLC now owns 1,877 shares of the company’s stock worth $156,000 after buying an additional 140 shares in the last quarter. Finally, Soltis Investment Advisors LLC boosted its holdings in Cloudflare by 0.5% in the first quarter. Soltis Investment Advisors LLC now owns 31,403 shares of the company’s stock worth $3,041,000 after purchasing an additional 168 shares during the period. Hedge funds and other institutional investors own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.