Royal Bank of Canada Has Lowered Expectations for Cloudflare (NYSE:NET) Stock Price

Cloudflare (NYSE:NET) had its target price reduced by research analysts at Royal Bank of Canada from $170.00 to $148.00 in a report issued on Thursday,Benzinga reports. The firm currently has an “outperform” rating on the stock. Royal Bank of Canada’s target price points to a potential upside of 27.77% from the company’s previous close.

Several other analysts have also weighed in on NET. Oppenheimer lowered Cloudflare from an “outperform” rating to a “market perform” rating in a research note on Friday, February 7th. Truist Financial lifted their price target on Cloudflare from $120.00 to $140.00 and gave the company a “buy” rating in a research note on Tuesday, January 28th. Stifel Nicolaus lifted their price target on Cloudflare from $136.00 to $175.00 and gave the company a “buy” rating in a research note on Friday, February 7th. Baird R W lowered Cloudflare from a “strong-buy” rating to a “hold” rating in a research note on Monday, February 3rd. Finally, Needham & Company LLC cut their price target on Cloudflare from $185.00 to $145.00 and set a “buy” rating on the stock in a research note on Thursday. Four equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating and eleven have assigned a buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $130.04.

Cloudflare Stock Performance

NYSE:NET opened at $115.83 on Thursday. The stock’s 50-day simple moving average is $136.45 and its 200 day simple moving average is $108.31. The firm has a market capitalization of $39.97 billion, a PE ratio of -526.50 and a beta of 1.27. The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.32. Cloudflare has a twelve month low of $66.24 and a twelve month high of $177.37.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, February 6th. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.21). Cloudflare had a negative net margin of 4.72% and a negative return on equity of 5.52%. On average, analysts anticipate that Cloudflare will post -0.11 EPS for the current fiscal year.

Insider Activity

In related news, CFO Thomas J. Seifert sold 15,000 shares of the company’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $112.72, for a total transaction of $1,690,800.00. Following the completion of the sale, the chief financial officer now owns 252,869 shares in the company, valued at approximately $28,503,393.68. This represents a 5.60 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction on Wednesday, December 18th. The stock was sold at an average price of $113.00, for a total value of $5,919,392.00. Following the sale, the chief executive officer now owns 10,762 shares of the company’s stock, valued at $1,216,106. This trade represents a 82.96 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 571,766 shares of company stock worth $73,804,307 over the last quarter. 12.83% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. CreativeOne Wealth LLC lifted its position in shares of Cloudflare by 0.8% during the 4th quarter. CreativeOne Wealth LLC now owns 6,982 shares of the company’s stock valued at $752,000 after buying an additional 58 shares during the last quarter. Stratos Wealth Partners LTD. raised its stake in shares of Cloudflare by 1.2% during the 4th quarter. Stratos Wealth Partners LTD. now owns 6,583 shares of the company’s stock valued at $709,000 after purchasing an additional 77 shares during the period. Atomi Financial Group Inc. raised its stake in shares of Cloudflare by 3.3% during the 4th quarter. Atomi Financial Group Inc. now owns 2,966 shares of the company’s stock valued at $319,000 after purchasing an additional 94 shares during the period. Baxter Bros Inc. raised its stake in shares of Cloudflare by 3.8% during the 4th quarter. Baxter Bros Inc. now owns 2,750 shares of the company’s stock valued at $296,000 after purchasing an additional 100 shares during the period. Finally, Ellevest Inc. raised its stake in shares of Cloudflare by 2.3% during the 4th quarter. Ellevest Inc. now owns 4,538 shares of the company’s stock valued at $489,000 after purchasing an additional 102 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.