Cloudflare (NYSE:NET) Share Price Breaks Below Two Hundred Day Moving Average – What’s Next?

Cloudflare, Inc. (NYSE:NET) passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $249.31 and traded as low as $233.62. Cloudflare shares last traded at $243.7880, with a volume of 8,454,470 shares traded.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare reported quarterly earnings of $0.38 per share, above analyst estimates, while revenue rose 39.2% year over year to $782.51 million and also topped expectations. Zacks earnings article
• Positive Sentiment: The company raised its full-year revenue outlook to about $2.96 billion, up from its prior range of $2.86 billion to $2.87 billion, signaling confidence in continued growth. Wall Street Journal outlook article
• Neutral Sentiment: Cloudflare appointed Christian Smith as President of Revenue to lead its worldwide go-to-market organization and support its growth ambitions. Appointment announcement
• Negative Sentiment: Cloudflare fell alongside other cybersecurity stocks amid a broader pullback in AI-related shares, suggesting sector-wide selling contributed to the decline. TIKR market article
• Negative Sentiment: Valuation concerns and recent share-price weakness had weighed on sentiment ahead of earnings. This may help explain why strong results and guidance did not prevent a pullback. Invezz article

Analyst Ratings Changes

A number of research analysts have commented on the company. Scotiabank boosted their target price on Cloudflare from $300.00 to $390.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. TD Cowen downgraded Cloudflare from a “buy” rating to a “hold” rating in a research note on Tuesday. Sanford C. Bernstein lifted their price target on Cloudflare from $181.00 to $245.00 and gave the company a “market perform” rating in a report on Thursday, October 29th. Citigroup reiterated a “market outperform” rating on shares of Cloudflare in a report on Monday, August 31st. Finally, Royal Bank Of Canada boosted their price target on Cloudflare from $290.00 to $346.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat.com, Cloudflare has an average rating of “Moderate Buy” and a consensus target price of $333.21.

Cloudflare Price Performance

The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The stock has a market capitalization of $86.17 billion, a P/E ratio of -420.32, a PEG ratio of 206.44 and a beta of 1.37. The stock’s fifty day moving average is $319.02 and its 200-day moving average is $249.31.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The company had revenue of $782.51 million for the quarter, compared to analyst estimates of $737.16 million. During the same period last year, the company earned $0.27 earnings per share. The business’s revenue was up 39.2% compared to the same quarter last year. On average, equities analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Insider Activity

In related news, Director Carl Ledbetter sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, September 14th. The stock was sold at an average price of $312.22, for a total value of $1,561,100.00. Following the completion of the sale, the director directly owned 878,073 shares in the company, valued at approximately $274,151,952.06. The trade was a 0.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 12,500 shares of the company’s stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $299.59, for a total value of $3,744,875.00. Following the sale, the chief financial officer directly owned 104,958 shares of the company’s stock, valued at $31,444,367.22. The trade was a 10.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 259,057 shares of company stock valued at $79,516,905. Insiders own 10.66% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

A number of institutional investors have recently modified their holdings of NET. CENTRAL TRUST Co grew its stake in Cloudflare by 1,998.2% in the 3rd quarter. CENTRAL TRUST Co now owns 1,175 shares of the company’s stock valued at $408,000 after buying an additional 1,119 shares during the last quarter. Artemis Wealth Advisors LLC acquired a new position in Cloudflare during the 3rd quarter worth $868,000. Maryland State Retirement & Pension System lifted its position in Cloudflare by 15.9% during the 3rd quarter. Maryland State Retirement & Pension System now owns 19,448 shares of the company’s stock worth $6,754,000 after acquiring an additional 2,666 shares during the last quarter. Ritholtz Wealth Management lifted its position in Cloudflare by 161.4% during the 3rd quarter. Ritholtz Wealth Management now owns 4,702 shares of the company’s stock worth $1,633,000 after acquiring an additional 2,903 shares during the last quarter. Finally, Joel Isaacson & Co. LLC boosted its holdings in Cloudflare by 2.0% during the third quarter. Joel Isaacson & Co. LLC now owns 9,793 shares of the company’s stock valued at $3,401,000 after acquiring an additional 191 shares during the period. Institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.