Saturday, November 28, 2020

Needham slashes price target on Cloudflare Inc. [NET] – find out why.

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Cloudflare Inc. [NYSE: NET] surged by $1.52 during the normal trading session on Friday and reaching a high of $40.14 during the day while it closed the day at $40.04.

Cloudflare Inc. stock has also gained 7.92% of its value over the past 7 days. However, NET stock has inclined by 12.69% in the 3 months of the year. Over the past six months meanwhile, it has gained 82.33% and gained 134.70% year-on date.


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The market cap for NET stock reached $11.78 billion, with 299.32 million shares outstanding and 146.64 million shares in the current float. Compared to the average trading volume of 5.75M shares, NET reached a trading volume of 2144840 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Cloudflare Inc. [NET]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NET shares is $46.33 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NET stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Needham have made an estimate for Cloudflare Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on August 07, 2020. While these analysts kept the previous recommendation, Jefferies raised their target price from $27 to $50. The new note on the price target was released on July 28, 2020, representing the official price target for Cloudflare Inc. stock. Previously, the target price had yet another raise from $38 to $47, while Needham kept a Buy rating on NET stock.

The Average True Range (ATR) for Cloudflare Inc. is set at 1.75, with the Price to Sales ratio for NET stock in the period of the last 12 months amounting to 33.76. The Price to Book ratio for the last quarter was 14.35, with the Price to Cash per share for the same quarter was set at 3.65.

NET stock trade performance evaluation

Cloudflare Inc. [NET] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 7.92. With this latest performance, NET shares gained by 0.35% in over the last four-week period, additionally plugging by 82.33% over the last 6 months – not to mention a rise of 104.81% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NET stock in for the last two-week period is set at 58.85, with the RSI for the last a single of trading hit 63.83, and the three-weeks RSI is set at 56.63 for Cloudflare Inc. [NET]. The present Moving Average for the last 50 days of trading for this stock 38.30, while it was recorded at 39.47 for the last single week of trading, and 27.69 for the last 200 days.

Cloudflare Inc. [NET]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Cloudflare Inc. [NET] shares currently have an operating margin of -41.20 and a Gross Margin at +77.90. Cloudflare Inc.’s Net Margin is presently recorded at -36.87.

Return on Total Capital for NET is now -24.51, given the latest momentum, and Return on Invested Capital for the company is -21.94. Return on Equity for this stock declined to -22.42, with Return on Assets sitting at -18.74. When it comes to the capital structure of this company, Cloudflare Inc. [NET] has a Total Debt to Total Equity ratio set at 1.45. Additionally, NET Total Debt to Total Capital is recorded at 1.43, with Total Debt to Total Assets ending up at 1.26. Long-Term Debt to Equity for the company is recorded at 1.45, with the Long-Term Debt to Total Capital now at 1.43.

Reflecting on the efficiency of the workforce at the company, Cloudflare Inc. [NET] managed to generate an average of -$83,329 per employee. Receivables Turnover for the company is 9.16 with a Total Asset Turnover recorded at a value of 0.51.Cloudflare Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 9.40 and a Current Ratio set at 9.40.

Earnings per share (EPS) analysis for Cloudflare Inc. [NET] stock

With the latest financial reports released by the company, Cloudflare Inc. posted -0.15/share EPS, while the average EPS was predicted by analysts to be reported at -0.15/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NET.

Cloudflare Inc. [NET]: Insider Ownership positions

There are presently around $5,922 million, or 80.40% of NET stock, in the hands of institutional investors. The top three institutional holders of NET stocks are: VENROCK MANAGEMENT V, LLC with ownership of 31,398,202, which is approximately New of the company’s market cap and around 5.54% of the total institutional ownership; FMR LLC, holding 24,729,579 shares of the stock with an approximate value of $990.17 million in NET stocks shares; and BAILLIE GIFFORD & CO, currently with $570.11 million in NET stock with ownership of nearly New of the company’s market capitalization.

Positions in Cloudflare Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 207 institutional holders increased their position in Cloudflare Inc. [NYSE:NET] by around 86,332,324 shares. Additionally, 58 investors decreased positions by around 15,772,979 shares, while 16 investors held positions by with 45,807,548 shares. The mentioned changes placed institutional holdings at 147,912,851 shares, according to the latest SEC report filing. NET stock had 146 new institutional investments in for a total of 60,459,756 shares, while 19 institutional investors sold positions of 3,734,327 shares during the same period.

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