Cloudflare (NYSE:NET) Stock Crosses Below 200 Day Moving Average – Here’s What Happened

Cloudflare, Inc. (NYSE:NET)’s share price crossed below its two hundred day moving average during trading on Thursday. The stock has a two hundred 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 changing hands.

Cloudflare News Roundup

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

Analysts Set New Price Targets

Several research analysts have commented on NET shares. Robert W. Baird set a $330.00 target price on shares of Cloudflare in a research report on Friday, August 7th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cloudflare in a report on Thursday, October 15th. KeyCorp lifted their price target on Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a report on Friday, August 7th. The Goldman Sachs Group reiterated a “buy” rating and set a $389.00 price objective on shares of Cloudflare in a research report on Friday, August 7th. Finally, Truist Financial increased their price objective on Cloudflare from $300.00 to $350.00 and gave the stock a “buy” rating in a report on Friday, August 7th. Twenty-four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $333.21.

Cloudflare Stock Down 8.5%

The firm has a market cap of $86.17 billion, a price-to-earnings ratio of -420.32, a P/E/G ratio of 206.44 and a beta of 1.37. The firm’s fifty day moving average is $319.02 and its two-hundred day moving average is $249.31. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.

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

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total value of $11,494,614.87. Following the completion of the transaction, the insider directly owned 69,775 shares in the company, valued at $24,301,934.75. This trade represents a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, October 19th. The shares were sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the transaction, the director owned 868,073 shares in the company, valued at $264,241,421.20. This represents a 0.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 259,057 shares of company stock valued at $79,516,905. Company insiders own 10.66% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. GK Wealth Management LLC acquired a new stake in shares of Cloudflare during the third quarter worth approximately $25,000. Cornerstone Financial Management LLC grew its position in Cloudflare by 65.3% during the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new position in Cloudflare in the 2nd quarter valued at approximately $30,000. CX Institutional increased its stake in Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after buying an additional 44 shares during the period. Finally, Cape Investment Advisory Inc. acquired a new position in Cloudflare in the 2nd quarter valued at approximately $33,000. 82.68% of the stock is owned by institutional investors.

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.