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

Cloudflare, Inc. (NYSE:NET)’s share price gapped down prior to trading on Tuesday after an insider sold shares in the company. The stock had previously closed at $202.25, but opened at $187.48. Cloudflare shares last traded at $196.2990, with a volume of 3,551,685 shares traded.

Specifically, CAO Janel Riley sold 3,488 shares of the stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $196.51, for a total transaction of $685,426.88. Following the sale, the chief accounting officer directly owned 56,144 shares in the company, valued at $11,032,857.44. This represents a 5.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Carl Ledbetter sold 15,000 shares of the firm’s stock in a transaction dated Monday, November 17th. The shares were sold at an average price of $207.96, for a total transaction of $3,119,400.00. Following the completion of the transaction, the director directly owned 983,073 shares in the company, valued at approximately $204,439,861.08. This represents a 1.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Cantor Fitzgerald upped their price target on shares of Cloudflare from $199.00 to $224.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. DZ Bank upgraded Cloudflare from a “sell” rating to a “hold” rating and set a $237.00 target price for the company in a research note on Wednesday, November 5th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a research note on Wednesday, October 8th. UBS Group upped their price objective on Cloudflare from $240.00 to $245.00 and gave the stock a “neutral” rating in a research report on Friday, October 31st. Finally, Guggenheim reaffirmed a “sell” rating on shares of Cloudflare in a research note on Tuesday, October 21st. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cloudflare presently has an average rating of “Moderate Buy” and a consensus target price of $235.35.

Cloudflare Stock Down 2.8%

The stock has a market capitalization of $68.85 billion, a price-to-earnings ratio of -655.15 and a beta of 2.10. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.46. The stock has a 50 day moving average price of $221.30 and a 200 day moving average price of $197.12.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently added to or reduced their stakes in the business. Physician Wealth Advisors Inc. raised its position in Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock worth $26,000 after purchasing an additional 104 shares during the last quarter. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare in the third quarter valued at about $26,000. Westside Investment Management Inc. raised its position in shares of Cloudflare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock worth $28,000 after acquiring an additional 65 shares during the last quarter. ORG Wealth Partners LLC raised its position in shares of Cloudflare by 101.4% during the third quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock worth $30,000 after acquiring an additional 70 shares during the last quarter. Finally, Wexford Capital LP acquired a new position in shares of Cloudflare in the third quarter worth approximately $30,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Cloudflare Company Profile

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.