Cloudflare (NYSE:NET) stock price drops 5.2% following insider selling

Cloudflare, Inc. (NYSE:NET – Get Rating) fell 5.2% on Thursday following insider selling activity. The company traded as low as $48.67 and last traded at $49.93. About 38,471 shares changed hands during the midday session, down 99% from the average daily volume of 6,261,648 shares. The stock previously closed at $52.68. Specifically, Chief Financial Officer Thomas J. Seifert sold 20,000 shares of the company in a transaction on Monday, November 7. The stock was sold at an average price of $40.78, for a total value of $815,600.00. Following the completion of the transaction, the CFO now directly owns 86,433 shares of the company, valued at $3,524,737.74. The sale was disclosed in a document filed with the SEC, accessible via the SEC’s website. Separately, Chief Financial Officer Thomas J. Seifert sold 20,000 shares of the company in a transaction on Monday, November 7. The stock was sold at an average price of $40.78, for a total value of $815,600.00. Following the completion of the transaction, the CFO now directly owns 86,433 shares of the company, valued at $3,524,737.74. The sale was disclosed in a document filed with the SEC, accessible via the SEC’s website. Additionally, CEO Matthew Prince sold 52,384 shares in a trade on Thursday, November 10. The stock was sold at an average price of $45.84, for a total value of $2,401,282.56. The disclosure of this sale can be found here. Insiders sold a total of 393,304 shares of the company valued at $21,954,778 in the past ninety days. 15.99% of the shares are held by insiders of the company.

Analyst upgrades and downgrades

NET has been the subject of several recent analyst reports. Morgan Stanley lowered its price target on Cloudflare from $76.00 to $52.00 and set an “equal weight” rating for the company in a Monday, Nov. 7 research note. Macquarie began covering Cloudflare in a research note on Wednesday, November 2. They set a “neutral” rating and a price target of $60.00 for the company. Wells Fargo & Company upgraded Cloudflare from an “equal weight” rating to an “overweight” rating and increased its target price for the company from $62.00 to $65.00 in a research note from the Monday, October 17. Robert W. Baird lowered his target price on Cloudflare from $80.00 to $67.00 in a Friday, November 4 research note. Finally, Guggenheim began covering Cloudflare in a research note on Friday, August 12. They issued a “neutral” rating and a target price of $82.00 for the company. One analyst has rated the stock with a sell rating, ten have issued a hold rating and ten have assigned the company a buy rating. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average price target of $90.84.

Cloudflare Stock Performance

The company has a quick ratio of 5.35, a current ratio of 5.35 and a leverage ratio of 2.42. The stock has a market capitalization of $16.18 billion, a P/E ratio of -75.26 and a beta of 1.08. The stock has a fifty-day simple moving average of $54.54 and a 200-day simple moving average of $56.28.

Hedge funds weigh on Cloudflare

A number of hedge funds and other institutional investors have recently increased or reduced their stakes in NET. Capital World Investors increased its stake in Cloudflare by 50.2% in the first quarter. Capital World Investors now owns 17,046,464 shares of the company worth $2,040,462,000 after purchasing an additional 5,698,601 shares in the last quarter. Sands Capital Management LLC increased its equity stake in Cloudflare by 53.6% during Q1. Sands Capital Management LLC now owns 13,550,528 shares of the company valued at $1,621,998,000 after purchasing an additional 4,731,354 shares in the last quarter. Allianz Asset Management GmbH increased its stake in Cloudflare shares by 574.2% during the 1st quarter. Allianz Asset Management GmbH now owns 2,894,091 shares of the company valued at $346,422,000 after purchasing an additional 2,464,830 shares last quarter. First Trust Advisors LP increased its equity stake in Cloudflare by 30.4% during Q1. First Trust Advisors LP now owns 6,448,150 shares of the company valued at $771,844,000 after purchasing an additional 1,503,125 shares in the last quarter. Finally, Vanguard Group Inc. increased its equity stake in Cloudflare by 5.8% during Q3. Vanguard Group Inc. now owns 25,299,971 shares of the company valued at $1,399,341,000 after purchasing an additional 1,398,081 shares in the last quarter. Institutional investors hold 71.69% of the company’s shares.

Cloudflare Company Profile

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CloudFlare, Inc operates as a cloud service provider that offers a range of services to businesses around the world. The company offers an integrated cloud-based security solution to secure a range of platform combinations, including public cloud, private cloud, on-premises applications, software as a service, and IoT devices.

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