ValuEngine Downgrades Cloudflare (NYSE:NET) to Hold

Cloudflare (NYSE:NET) was downgraded by ValuEngine from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday, ValuEngine reports.

Several other research firms have also recently issued reports on NET. William Blair initiated coverage on Cloudflare in a report on Friday, July 17th. They issued an “outperform” rating on the stock. Needham & Company LLC upped their price target on Cloudflare from $47.00 to $50.00 and gave the company a “buy” rating in a report on Friday, August 7th. Goldman Sachs Group boosted their target price on shares of Cloudflare from $27.00 to $39.00 and gave the company a “neutral” rating in a research note on Wednesday, June 24th. They noted that the move was a valuation call. Jefferies Financial Group raised shares of Cloudflare from a “hold” rating to a “buy” rating and boosted their target price for the company from $27.00 to $50.00 in a research note on Tuesday, July 28th. Finally, Morgan Stanley boosted their target price on shares of Cloudflare from $34.00 to $42.00 and gave the company an “equal weight” rating in a research note on Friday, August 14th. Six equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. The company presently has a consensus rating of “Buy” and an average price target of $38.31.

NYSE NET opened at $35.90 on Tuesday. The stock has a market capitalization of $10.98 billion and a P/E ratio of -55.23. Cloudflare has a 1 year low of $14.50 and a 1 year high of $45.28. The business’s fifty day moving average is $38.29 and its two-hundred day moving average is $30.57. The company has a debt-to-equity ratio of 0.44, a quick ratio of 9.38 and a current ratio of 9.38.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.06) by $0.03. The company had revenue of $99.70 million for the quarter, compared to analysts’ expectations of $94.17 million. Cloudflare had a negative return on equity of 15.35% and a negative net margin of 36.66%. The firm’s revenue was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.22) earnings per share. On average, research analysts forecast that Cloudflare will post -0.34 earnings per share for the current year.

In other news, CEO Matthew Prince sold 52,385 shares of the business’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $35.98, for a total transaction of $1,884,812.30. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Thomas J. Seifert sold 15,000 shares of the business’s stock in a transaction on Tuesday, June 23rd. The shares were sold at an average price of $35.71, for a total transaction of $535,650.00. Following the transaction, the chief financial officer now owns 15,000 shares in the company, valued at $535,650. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 9,648,739 shares of company stock worth $366,559,665. 35.89% of the stock is currently owned by corporate insiders.

A number of large investors have recently modified their holdings of NET. Venrock Management V LLC bought a new stake in Cloudflare in the second quarter worth $1,128,765,000. Vanguard Group Inc. boosted its holdings in Cloudflare by 169.5% in the second quarter. Vanguard Group Inc. now owns 9,213,102 shares of the company’s stock worth $331,210,000 after purchasing an additional 5,795,087 shares in the last quarter. FMR LLC boosted its holdings in Cloudflare by 13.9% in the second quarter. FMR LLC now owns 24,729,579 shares of the company’s stock worth $889,029,000 after purchasing an additional 3,012,041 shares in the last quarter. Venrock Partners Management V LLC bought a new stake in Cloudflare in the second quarter worth $95,701,000. Finally, First Trust Advisors LP boosted its holdings in Cloudflare by 182.6% in the second quarter. First Trust Advisors LP now owns 3,185,622 shares of the company’s stock worth $114,523,000 after purchasing an additional 2,058,554 shares in the last quarter. Hedge funds and other institutional investors own 47.78% of the company’s stock.

About Cloudflare

CloudFlare, Inc operates a cloud platform that delivers a range of network 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 Internet of Things (IoT) devices.

Read More: What is insider trading?

To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Cloudflare (NYSE:NET)

Receive News & Ratings for Cloudflare Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cloudflare and related companies with MarketBeat.com's FREE daily email newsletter.