Royal Bank of Canada Forecasts Strong Price Appreciation for Cloudflare (NYSE:NET) Stock

Cloudflare (NYSE:NET) had its target price boosted by Royal Bank of Canada from $99.00 to $123.00 in a research note issued to investors on Friday, MarketBeat Ratings reports. The brokerage currently has an “outperform” rating on the stock. Royal Bank of Canada’s price target suggests a potential upside of 9.20% from the stock’s previous close.

Other analysts have also issued reports about the company. The Goldman Sachs Group upgraded Cloudflare from a “sell” rating to a “buy” rating and boosted their price target for the company from $77.00 to $140.00 in a report on Thursday. Scotiabank boosted their target price on Cloudflare from $85.00 to $87.00 and gave the company a “sector perform” rating in a research note on Friday, November 8th. Wells Fargo & Company raised their price target on shares of Cloudflare from $105.00 to $110.00 and gave the stock an “overweight” rating in a research note on Friday, November 8th. Piper Sandler boosted their price objective on shares of Cloudflare from $83.00 to $92.00 and gave the stock a “neutral” rating in a research report on Friday, November 8th. Finally, Jefferies Financial Group raised their target price on shares of Cloudflare from $100.00 to $125.00 and gave the company a “hold” rating in a research report on Thursday, December 19th. Three analysts have rated the stock with a sell rating, twelve have given a hold rating and thirteen have given a buy rating to the company’s stock. According to data from MarketBeat, Cloudflare currently has an average rating of “Hold” and a consensus target price of $101.37.

Cloudflare Trading Up 0.1 %

Shares of NET stock traded up $0.10 on Friday, hitting $112.64. The stock had a trading volume of 816,604 shares, compared to its average volume of 2,348,658. The company has a current ratio of 3.37, a quick ratio of 3.37 and a debt-to-equity ratio of 1.32. Cloudflare has a twelve month low of $66.24 and a twelve month high of $119.42. The company has a fifty day moving average price of $102.30 and a two-hundred day moving average price of $88.83. The firm has a market cap of $38.66 billion, a P/E ratio of -433.23 and a beta of 1.10.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, November 7th. The company reported ($0.03) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.03). Cloudflare had a negative return on equity of 7.18% and a negative net margin of 5.97%. The company had revenue of $430.08 million during the quarter, compared to the consensus estimate of $423.65 million. As a group, analysts forecast that Cloudflare will post -0.1 earnings per share for the current fiscal year.

Insider Activity

In other news, COO Michelle Zatlyn sold 64,100 shares of the company’s stock in a transaction on Monday, October 7th. The shares were sold at an average price of $81.60, for a total transaction of $5,230,560.00. Following the completion of the transaction, the chief operating officer now directly owns 192,177 shares in the company, valued at approximately $15,681,643.20. This represents a 25.01 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $93.95, for a total value of $4,921,476.80. Following the sale, the chief executive officer now directly owns 10,761 shares in the company, valued at $1,010,995.95. The trade was a 82.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 614,592 shares of company stock worth $60,146,600. 12.83% of the stock is currently owned by corporate insiders.

Institutional Trading of Cloudflare

Several institutional investors have recently added to or reduced their stakes in NET. Allspring Global Investments Holdings LLC grew its stake in Cloudflare by 212.2% during the second quarter. Allspring Global Investments Holdings LLC now owns 868 shares of the company’s stock worth $72,000 after purchasing an additional 590 shares during the period. Commonwealth Equity Services LLC grew its stake in Cloudflare by 18.7% in the second quarter. Commonwealth Equity Services LLC now owns 55,105 shares of the company’s stock valued at $4,564,000 after acquiring an additional 8,678 shares during the period. Van ECK Associates Corp increased its holdings in shares of Cloudflare by 327.8% during the second quarter. Van ECK Associates Corp now owns 30,697 shares of the company’s stock valued at $2,543,000 after acquiring an additional 23,521 shares in the last quarter. CIBC Asset Management Inc increased its holdings in shares of Cloudflare by 9.2% during the second quarter. CIBC Asset Management Inc now owns 10,084 shares of the company’s stock valued at $835,000 after acquiring an additional 847 shares in the last quarter. Finally, Rhumbline Advisers raised its position in shares of Cloudflare by 0.9% during the second quarter. Rhumbline Advisers now owns 398,696 shares of the company’s stock worth $33,024,000 after purchasing an additional 3,395 shares during the period. 82.68% of the stock is currently owned by institutional investors.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.