Cloudflare (NYSE:NET) Shares Gap Down Following Insider Selling

Cloudflare, Inc. (NYSE:NET) shares gapped down prior to trading on Friday after an insider sold shares in the company. The stock had previously closed at $88.97, but opened at $78.23. Cloudflare shares last traded at $74.06, with a volume of 7,058,292 shares trading hands.

Specifically, insider Douglas James Kramer sold 3,000 shares of the company’s stock in a transaction on Monday, March 4th. The shares were sold at an average price of $99.64, for a total value of $298,920.00. Following the sale, the insider now directly owns 205,238 shares of the company’s stock, valued at $20,449,914.32. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In related news, insider Douglas James Kramer sold 3,000 shares of Cloudflare stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $99.64, for a total transaction of $298,920.00. Following the completion of the transaction, the insider now directly owns 205,238 shares in the company, valued at $20,449,914.32. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Carl Ledbetter sold 7,962 shares of the company’s stock in a transaction that occurred on Wednesday, February 7th. The stock was sold at an average price of $81.42, for a total value of $648,266.04. Following the completion of the sale, the director now owns 1,446,957 shares in the company, valued at approximately $117,811,238.94. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,029,347 shares of company stock worth $100,594,226. Company insiders own 12.83% of the company’s stock.

Wall Street Analyst Weigh In

NET has been the topic of several recent analyst reports. Cantor Fitzgerald lowered their target price on shares of Cloudflare from $100.00 to $80.00 and set a “neutral” rating on the stock in a research note on Friday. Capital One Financial initiated coverage on shares of Cloudflare in a research note on Wednesday, January 17th. They set an “equal weight” rating and a $83.00 target price on the stock. Oppenheimer lowered their target price on shares of Cloudflare from $122.00 to $110.00 and set an “outperform” rating on the stock in a research note on Friday. Mizuho lowered their target price on shares of Cloudflare from $95.00 to $88.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Needham & Company LLC reissued a “buy” rating and set a $135.00 target price on shares of Cloudflare in a research note on Friday. Four equities research analysts have rated the stock with a sell rating, ten have given a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $90.17.

Cloudflare Trading Down 16.2 %

The company’s 50 day moving average price is $93.67 and its 200 day moving average price is $83.47. The company has a debt-to-equity ratio of 1.68, a current ratio of 3.50 and a quick ratio of 3.50. The firm has a market cap of $25.16 billion, a PE ratio of -135.49 and a beta of 1.15.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, February 8th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.07) by $0.01. The company had revenue of $362.47 million during the quarter, compared to analysts’ expectations of $352.70 million. Cloudflare had a negative net margin of 14.19% and a negative return on equity of 15.92%. As a group, analysts forecast that Cloudflare, Inc. will post -0.2 EPS for the current fiscal year.

Institutional Investors Weigh In On Cloudflare

Several institutional investors have recently added to or reduced their stakes in the business. Deutsche Bank AG boosted its position in shares of Cloudflare by 5.1% in the 3rd quarter. Deutsche Bank AG now owns 1,352,203 shares of the company’s stock valued at $85,243,000 after purchasing an additional 65,596 shares during the period. Envestnet Portfolio Solutions Inc. acquired a new position in shares of Cloudflare in the 3rd quarter valued at $569,000. International Assets Investment Management LLC acquired a new stake in Cloudflare during the 4th quarter worth $11,639,000. Blueshift Asset Management LLC grew its position in Cloudflare by 100.2% during the 3rd quarter. Blueshift Asset Management LLC now owns 25,926 shares of the company’s stock worth $1,634,000 after purchasing an additional 12,974 shares during the last quarter. Finally, LA Financiere DE L Echiquier increased its stake in Cloudflare by 4.5% in the fourth quarter. LA Financiere DE L Echiquier now owns 407,600 shares of the company’s stock valued at $33,937,000 after purchasing an additional 17,600 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.