Cloudflare Inc (NYSE:NET) saw a downside of -1.85% to close Tuesday at $56.68 after subtracting -$1.07 on the day. The 5-day average trading volume is 3,331,480 shares of the company’s common stock. It has gained $61.15 in the past week and touched a new high 1 time within the past 5 days. An average of 2,887,315 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,512,974.
NET’s 1-month performance is -8.87% or -$5.52 on its low of $56.08 reached on 09/21/23. 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 25.37% or $11.47 and has reached a new high 11 times. However, the current price is down -25.49% from the 52-week high price.
Insider Transactions
NET stock investors last saw insider trading activity on Sep 21.Zatlyn Michelle (President and COO) most recently sold 12,820 shares at $58.28 per share on Sep 21. This transaction cost the insider $747,159. President and COO, Zatlyn Michelle, sold 12,820 shares at a price of $59.88 on Sep 20. Then, on Sep 20, Director Ledbetter Carl sold 8,030 shares at a price of $60.08 per share. This transaction amounted to $482,466.
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 16.81 while the price-to-book (PB) in the most recent quarter is 29.46, with the price to cash flow ratio at 205.37.
Cloudflare Inc’s quick ratio for the period ended June 29 was 3.84, with the current ratio over the same period at 3.84. As well, the company’s long term debt to equity for the quarter ending June 29 was 2.16, while the total debt to equity was 2.27.. In terms of profitability, the gross margin trailing 12 months is 75.57%. The trailing 12-month EBITDA margin is -6.66% while for the period ending June 29, Cloudflare Inc’s operating margin was -17.75%. 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 26 September was 30.28% to suggest the stock is trending Neutral, with historical volatility in this time period at 36.26%.
The stock’s 5-day moving average is $57.75, reflecting a -5.80% or -$3.49 change from its current price. NET is currently trading -8.33% above its 20-day SMA, +35.27% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -20.37% and SMA200 by+28.03%.
Stochastic %K and %D was 13.32% and 11.94% and the average true range (ATR) pointed at 2.29. The RSI (14) points at 36.04%, while the 14-day stochastic is at 6.06% with the period’s ATR at 2.51. The stock’s 9-day MACD Oscillator is pointing at -2.49 and -4.03 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Cloudflare Inc (NYSE: NET), BofA Securities launched coverage with an Underperform rating. 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.” 1 analysts have rated the stock as underweight. 3 rates the stock as overweight while 10 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 $74.00. Looking at these predictions, the average price target given by analysts is for Cloudflare Inc (NET) stock is $68.84.
