Cloudflare Sees Unusually Large Options Volume (NYSE:NET)

Cloudflare, Inc. (NYSE:NET) saw some unusual options trading activity on Wednesday. Stock traders purchased 21,646 call options on the stock. This represents an increase of approximately 46% compared to the typical volume of 14,788 call options.

Cloudflare Stock Performance

NET traded up $5.01 on Wednesday, hitting $109.92. The company’s stock had a trading volume of 1,883,446 shares, compared to its average volume of 3,163,093. Cloudflare has a 12 month low of $66.24 and a 12 month high of $116.00. The company’s 50 day simple moving average is $91.03 and its 200-day simple moving average is $82.94. The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.32. The firm has a market cap of $37.72 billion, a P/E ratio of -403.42 and a beta of 1.10.

Cloudflare (NYSE:NET) last issued its earnings results on Thursday, November 7th. The company reported ($0.03) 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 business had revenue of $430.08 million during the quarter, compared to the consensus estimate of $423.65 million. Analysts forecast that Cloudflare will post -0.11 EPS for the current year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of the business’s stock in a transaction on Friday, November 1st. The stock was sold at an average price of $88.60, for a total value of $265,800.00. Following the completion of the transaction, the insider now directly owns 185,386 shares in the company, valued at approximately $16,425,199.60. The trade was a 1.59 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Friday, September 6th. The shares were sold at an average price of $76.55, for a total transaction of $4,009,995.20. Following the completion of the sale, the chief executive officer now directly owns 10,761 shares of the company’s stock, valued at $823,754.55. This trade represents a 82.96 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 536,568 shares of company stock worth $47,573,767 over the last 90 days. Corporate insiders own 12.83% of the company’s stock.

Institutional Trading of Cloudflare

A number of large investors have recently modified their holdings of the business. CVA Family Office LLC raised its holdings in Cloudflare by 121.3% during the 3rd quarter. CVA Family Office LLC now owns 312 shares of the company’s stock valued at $25,000 after buying an additional 171 shares during the last quarter. Quarry LP lifted its stake in shares of Cloudflare by 73.4% in the 2nd quarter. Quarry LP now owns 345 shares of the company’s stock valued at $29,000 after purchasing an additional 146 shares during the period. Thurston Springer Miller Herd & Titak Inc. bought a new position in Cloudflare in the second quarter worth $29,000. Capital Performance Advisors LLP bought a new stake in shares of Cloudflare during the 3rd quarter valued at $38,000. Finally, Quest Partners LLC purchased a new stake in shares of Cloudflare in the 3rd quarter worth about $54,000. Institutional investors own 82.68% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on NET shares. Piper Sandler upped their target price on Cloudflare from $83.00 to $92.00 and gave the company a “neutral” rating in a report on Friday, November 8th. Mizuho upped their price objective on shares of Cloudflare from $92.00 to $105.00 and gave the company a “neutral” rating in a research note on Thursday, October 17th. Wells Fargo & Company lifted their target price on shares of Cloudflare from $105.00 to $110.00 and gave the company an “overweight” rating in a research note on Friday, November 8th. UBS Group upped their price target on shares of Cloudflare from $88.00 to $95.00 and gave the stock a “neutral” rating in a research note on Friday, November 8th. Finally, BNP Paribas assumed coverage on Cloudflare in a research report on Tuesday, October 8th. They issued an “underperform” rating and a $65.00 price objective for the company. Four equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and eleven have issued a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $94.40.

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.