Cloudflare Inc. (NYSE:NET) finished Thursday with a subtraction of -$0.3 to close at $63.29, a downside of -0.47 percent. An average of 6,516,880 shares of common stock have been traded in the last five days. There was a fall of -$1.75 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 4,566,000 shares traded, while the 50-day average volume stands at 4,507,912.
NET stock has decreased by -1.46% in the last month. The company shares reached their 1-month lowest point of $62.58 on 08/10/23. With the stock rallying to its 52-week high on 07/19/23, shares of the company touched a low of $37.37 and a high of $80.99 in 52 weeks. It has reached a new high 11 times so far this year and achieved 39.99% or $18.08 in price. In spite of this, the price is down -21.85% from the 52-week high.
Insider Transactions
NET stock investors should be aware that Cloudflare Inc. (NET) stock had its last reported insider trading activity 2 days ago on Aug 09. In this transaction, the insider spent $531,787. Director, SANDELL SCOTT D, disposed of 20,307 shares at a price of $65.26 on Aug 08. The insider now owns more than $1,325,158 worth of shares. Prior to that, Chief Financial Officer SEIFERT THOMAS J went on to Sale 15,000 shares at $64.86 each on Aug 03. An amount of $972,912 was transacted.
Valuation Metrics
Cloudflare Inc. (NET) stock’s beta is 0.95. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 18.66, the price-to-book (PB) ratio at 32.79, and the price-to-cash flow ratio at 312.45.
Financial Health
The quick ratio of Cloudflare Inc. for the three months ended June 29 was 3.80, and the current ratio was 3.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.00 and a total debt to equity ratio of 2.05 for the quarter ending June 29. Cloudflare Inc.’s EBITDA margin for the year ending June 29 is -6.66%, while its operating margin for the same period stands at -23.80%. Its gross profit as reported stood at $742.63 million compared to revenue of $975.24 million.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Cloudflare Inc.’s return on assets was -8.60%.
Earnings Surprise
For the three-month period that ended June 29, Cloudflare Inc. had $1.43 billion in cash. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$94.47 million in the quarter, while revenues were grew 32.74%. The analyst consensus anticipated Cloudflare Inc.’s latest quarter earnings to come in at $0.07 per share, but it turned out to be $0.1, a 42.90% surprise. For the quarter, EBITDA amounted to -$6.29 million. Shareholders own equity worth $334.22 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Cloudflare Inc. (NET) price momentum. RSI 9-day as of the close on 10 August was 40.44%, suggesting the stock is Neutral, with historical volatility in this time frame at 63.14%.
As of today, NET’s price is $66.16 -2.69% or -$1.75 from its 5-day moving average. NET is currently trading -6.40% lower than its 20-day SMA and +16.06% higher than its 100-day SMA. However, the stock’s current price level is -4.34% below the SMA50 and +16.38% above the SMA200.
The stochastic %K and %D were 14.62% and 26.69%, respectively, and the average true range (ATR) was 4.08. With the 14-day stochastic at 5.66% and the average true range at 3.95, the RSI (14) stands at 44.31%. The stock has reached -1.88 on the 9-day MACD Oscillator while the 14-day reading was at -1.74.
Analyst Ratings
Guggenheim downgraded Cloudflare Inc. (NYSE: NET) to a a Sell rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for Cloudflare Inc. (NET) among analysts is Overweight. According to current brokerage recommendations, 3 brokerage firms advise that investors sell NET, while 13 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 2 analysts, while 11 others rate it as a “buy”.
What is NET’s price target for the next 12 months?
Analysts predict a range of price targets between $43.00 and $90.00, with a median target of $75.00. Taking a look at these predictions, the average price target given by analysts for Cloudflare Inc. (NET) stock is $69.95.
