The stock of Cloudflare Inc. (NYSE:NET) decreased by -$3.53 on Tuesday to finish at $62.11, down -5.38 percent. The last five days have seen an average of 2,984,700 shares of common stock traded. 11 times new highs were reached in the current year, with a gain of $16.90. The average number of shares traded over the last 20 days was 4,213,800, while the average volume over the last 50 days totaled 4,233,408.
NET stock dropped -12.74% since last month. On 08/15/23, the company’s shares reached a one-month low of $62.08. The stock touched a high of $80.32 on 07/19/23, after rallying from a low of $37.37 in 52 weeks. The price of NET stock has risen by 37.38% or $16.90 this year, reaching a new high 11 times. Still, the stock price is down -22.67% 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 7 days ago on Aug 09. On Aug 09, Director Ledbetter Carl sold 8,017 shares at $66.33 each. This transaction resulted in the insider making $531,787. On Aug 08, SANDELL SCOTT D sold 20,307 shares at a price of US$65.26. After the transaction, the insider now owns 0 shares. Chief Financial Officer SEIFERT THOMAS J had earlier sold 15,000 shares on Aug 03 for $64.86 a share. The transaction was completed for $972,912.
Valuation Metrics
Beta for the stock is 0.94. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 18.32, the price-to-book (PB) ratio of 32.18, and the price-to-cash flow ratio of 328.36.
Financial Health
For the three months ended June 29, Cloudflare Inc.’s quick ratio was 3.80, while its current ratio was 3.80, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.00, and the total debt to equity ratio is 2.05. As far as profitability goes, gross margin for the trailing twelve months is 75.60% percent. Cloudflare Inc.’s EBITDA margin for the year ended June 29 was -6.66%, whereas its operating margin stood at -22.20% for the same period. Based on annual data, it had gross profit of $742.63 million and revenue of $975.24 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. NET’s return on assets (ROA) during the last 12 months has been -8.60%. There was a -9.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -35.20%.
Earnings Surprise
According to Cloudflare Inc.’s quarterly financial report for the quarter that ended June 29, it had $1.43 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $308.27 million, while revenues rose by 23.92% to $290.18 million. It was predicted that Cloudflare Inc.’s quarterly earnings would be $0.1, but it ended up being $0.07, beating the consensus by 42.90%. EBITDA was -$6.29 million for the quarter. At the end of Cloudflare Inc.’s most recent quarter ended June 29, its liabilities totaled 1.89 billion, while its total debt was $1.46 billion. Equity owned by shareholders amounts to $334.22 million.
Technical Picture
Here’s a quick look at Cloudflare Inc.’s (NET) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 39.30%, suggesting the stock is Neutral, with a 64.81% historical volatility rate.
The stochastic %K and %D were 10.94% and 10.22% respectively, while the average true range (ATR) was 3.68. Based on the 14-day stochastic reading of 0.23%, the RSI (14) reading is 42.99%. On the 9-day MACD Oscillator, the stock is at -1.46, and the 14-day reading is at -1.95.
Analyst Ratings
Cloudflare Inc. (NYSE: NET) was downgraded by Guggenheim to a a Sell rating in its latest research report. The stock was previously rated as a a Neutral. Analysts have assigned Cloudflare Inc. (NET) an Overweight rating. NET is a stock that is recommended for selling by 3 brokerage firms, while 13 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 2 rates it overweight and 11 others recommend it as a buy.
What is NET’s price target for the next 12 months?
The current consensus forecast for the stock is between $43.00 and $90.00, with a median target price of $75.00. In analyzing these forecasts, the average price target given by analysts for Cloudflare Inc. (NET) is $69.95.
