Cloudflare Inc. (NYSE:NET) saw an upside of 2.10% to close Tuesday at $59.80 after adding $1.23 on the day. The 5-day average trading volume is 2,985,300 shares of the company’s common stock. It has gained $62.95 in the past week and touched a new high 1 time within the past 5 days. An average of 3,997,635 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,891,908.
NET’s 1-month performance is -8.55% or -$6.77 on its low of $56.36 reached on 08/18/23. The company’s shares have touched a 52-week low of $37.37 and high of $76.07, with the stock’s rally to the 52-week high happening on 07/19/23. YTD, NET has achieved 32.27% or $14.59 and has reached a new high 11 times. However, the current price is down -21.39% from the 52-week high price.
Insider Transactions
NET stock investors last saw insider trading activity on Aug 18.SEIFERT THOMAS J (Chief Financial Officer) most recently sold 16,901 shares at $58.33 per share on Aug 18. This transaction cost the insider $985,786. CEO & Chair of the Board, Prince Matthew, sold 52,384 shares at a price of $58.93 on Aug 17. Then, on Aug 16, CEO & Chair of the Board Prince Matthew sold 52,384 shares at a price of $61.85 per share. This transaction amounted to $3,239,809.
Valuation Metrics
NET stock has a beta of 0.98. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 17.53 while the price-to-book (PB) in the most recent quarter is 30.98, with the price to cash flow ratio at 314.14.
Cloudflare Inc.’s quick ratio for the period ended June 29 was 3.80, with the current ratio over the same period at 3.80. As well, the company’s long term debt to equity for the quarter ending June 29 was 2.00, while the total debt to equity was 2.05.. In terms of profitability, the gross margin trailing 12 months is 75.60%. The trailing 12-month EBITDA margin is -6.66% while for the period ending June 29, Cloudflare Inc.’s operating margin was -22.20%. The firm’s gross profit as reported stood at $742.63 million against revenue of $975.24 million.
Earnings Surprise
For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 32.74% to -$94.47 million, while revenue of -$38.08 million was 59.69% off the previous quarter. Analysts expected NET to announce $0.07 per share in earnings in its latest quarter, but it posted $0.1, representing a 42.90% surprise. EBITDA for the quarter stood at more than -$6.29 million. NET stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 1.89 billion, with total debt at $1.46 billion. Shareholders hold equity totaling $334.22 million.
Let’s look briefly at Cloudflare Inc. (NET) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 22 August was 38.71% to suggest the stock is trending Neutral, with historical volatility in this time period at 44.81%.
The stock’s 5-day moving average is $59.30, reflecting a -3.72% or -$2.31 change from its current price. NET is currently trading -10.87% above its 20-day SMA, +4.75% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -6.30% and SMA200 by+19.74%.
Stochastic %K and %D was 14.69% and 9.95% and the average true range (ATR) pointed at 3.08. The RSI (14) points at 41.28%, while the 14-day stochastic is at 18.33% with the period’s ATR at 3.29. The stock’s 9-day MACD Oscillator is pointing at -2.12 and -4.00 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Cloudflare Inc. (NYSE: NET), Guggenheim downgraded it to a Sell rating. They previously had a Neutral rating on the stock. Analysts offering their rating for NET stock have a consensus rating for the stock as Overweight. Currently, 3 brokerage advisors rate NET as a “sell,”, while 13 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 11 have offered a “buy” rating.
What is NET’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $43.00 and a high of $90.00, with their median price target at $75.00. Looking at these predictions, the average price target given by analysts is for Cloudflare Inc. (NET) stock is $69.95.
