As of Friday close, Cloudflare Inc.’s (NYSE:NET) stock was up $1.21, moving up 2.14 percent to $57.76. The average number of shares traded per day over the past five days has been 3,759,480 shares. 1 time new highs have been achieved over the past 5 days, with a -$5.00 fall in that time frame. In the last twenty days, the average volume was 2,858,550, while in the previous 50 days, it was 3,628,604.
Since last month, NET stock retreated -8.48%. Shares of the company fell to $56.08 on 09/21/23, the lowest level in the past month. A 52-week high of $76.07 was reached on 07/19/23 after having rallying from a 52-week low of $37.37. Since the beginning of this year, NET’s stock price has risen by 27.76% or $12.55, and marked a new high 11 times. However, the stock has declined by -24.07% since its 52-week high.
NET stock investors should be aware that Cloudflare Inc. (NET) stock had its last reported insider trading activity 2 days ago on Sep 21. Zatlyn Michelle, the President and COO of the company, disposed of 12,820 shares for $58.28 on Sep 21. It resulted in a $747,159 divestment by the insider. Zatlyn Michelle sold 12,820 shares at an average price of $59.88 on Sep 20. The insider now owns 0 shares following the transaction. On Sep 20, Director Ledbetter Carl sold 8,030 shares at $60.08 apiece. The transaction was valued at $482,466.
Valuation Metrics
The stock’s beta is 0.98. Besides these, the trailing price-to-sales (P/S) ratio of 17.90, the price-to-book (PB) ratio of 29.93, and the price-to-cash flow ratio of 320.70 may also be considered.
Financial Health
In the three months ended June 29, Cloudflare Inc.’s quick ratio stood at 3.80, while its current ratio was 3.80, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 2.00, and the total debt-to-equity ratio was 2.05. On the profitability front, the trailing twelve-month gross margin is 75.60% percent. In the year ended June 29, EBITDA margin amounted to -6.66%, whereas operating margins totaled -22.20%. Based on annual data, NET earned $742.63 million in gross profit and brought in $975.24 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -9.90%. Return on equity (ROE) for the past 12 months was -35.20%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. NET’s revenue rose 23.92% to $290.18 million during the quarter, while net income inched up to $308.27 million. While analysts expected Cloudflare Inc. to report $0.07 quarterly earnings, the actual figure was $0.1 per share, beating the consensus estimate by 42.90%. During the quarter, the company generated -$6.29 million in EBITDA. The liabilities of Cloudflare Inc. were 1.89 billion at the end of its most recent quarter ended June 29, and its total debt was $1.46 billion. The value of shareholders’ equity is $334.22 million.
Technical Picture
This quick technical analysis looks at Cloudflare Inc.’s (NET) price momentum. With a historical volatility rate of 47.48%, the RSI 9-day stood at 33.40% on 22 September.
With respect to its five-day moving average, the current Cloudflare Inc. price is down by -7.97% percent or -$5.00. At present, NET shares trade -3.57% below its 20-day simple moving average and +29.16% percent above its 100-day simple moving average. However, the stock is currently trading approximately -14.58% below its SMA50 and +33.55% above its SMA200.
Stochastic coefficient K was 9.77% and Stochastic coefficient D was 8.70%, while ATR was 2.51. Given the Stochastic reading of 17.00% for the 14-day period, the RSI (14) reading has been calculated as 38.18%. As of today, the MACD Oscillator reading stands at -3.43, while the 14-day reading stands at -4.38.
Analyst Ratings
BofA Securities launched its rating on Cloudflare Inc. (NYSE: NET) to an Underperform in a note to investors on September 07, 2023. Cloudflare Inc. (NET) has been rated Overweight by analysts. According to 3 brokerage firms, NET is a sell, and 13 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 3 analysts rate Cloudflare Inc. stock as buy, with 10 recommending it as overweight.
With a median target price of $74.00, the current consensus forecast for the stock is $43.00 – $90.00. Based on these forecasts, analysts predict Cloudflare Inc. (NET) will achieve an average price target of $68.84.
