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

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Cloudflare Inc [NYSE: NET] stock went on an upward path that rose over 10.52% on Tuesday, amounting to a one-week price increase of more than 6.98%. The company report on November 2, 2023 at 4:15 PM that Cloudflare Announces Third Quarter 2023 Financial Results.

Third quarter revenue totaled $335.6 million, representing an increase of 32% year-over-year.

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GAAP loss from operations of $39.2 million, or 12% of revenue, and non-GAAP income from operations of $42.5 million, or 13% of revenue.

Over the last 12 months, NET stock rose by 31.47%. The one-year Cloudflare Inc stock forecast points to a potential downside of -8.4. The average equity rating for NET stock is currently 2.40, trading closer to a bullish pattern in the stock market.

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The market cap for the stock reached $23.71 billion, with 335.77 million shares outstanding and 292.13 million shares in the current float. Compared to the average trading volume of 3.59M shares, NET stock reached a trading volume of 8150470 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $65.14 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 2.40. 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.

BofA Securities have made an estimate for Cloudflare Inc shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on September 07, 2023.

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The Average True Range (ATR) for Cloudflare Inc is set at 3.22, with the Price to Sales ratio for NET stock in the period of the last 12 months amounting to 19.61. The Price to Book ratio for the last quarter was 33.90, with the Price to Cash per share for the same quarter was set at 4.69. Price to Free Cash Flow for NET in the course of the last twelve months was 231.51 with Quick ratio for the last quarter at 3.89.

NET Stock Performance Analysis:

Cloudflare Inc [NET] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.98. With this latest performance, NET shares gained by 11.18% in over the last four-week period, additionally plugging by 37.88% over the last 6 months – not to mention a rise of 31.47% 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 65.65, with the RSI for the last a single of trading hit 71.51, and the three-weeks RSI is set at 61.60 for Cloudflare Inc [NET]. The present Moving Average for the last 50 days of trading for this stock 61.40, while it was recorded at 64.87 for the last single week of trading, and 61.17 for the last 200 days.

Insight into Cloudflare Inc Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Cloudflare Inc [NET] shares currently have an operating margin of -25.51 and a Gross Margin at +76.15. Cloudflare Inc’s Net Margin is presently recorded at -19.83.

Return on Total Capital for NET is now -11.54, given the latest momentum, and Return on Invested Capital for the company is -9.12. Return on Equity for this stock declined to -26.95, with Return on Assets sitting at -7.80. When it comes to the capital structure of this company, Cloudflare Inc [NET] has a Total Debt to Total Equity ratio set at 252.75. Additionally, NET Total Debt to Total Capital is recorded at 71.65, with Total Debt to Total Assets ending up at 60.94. Long-Term Debt to Equity for the company is recorded at 247.42, with the Long-Term Debt to Total Capital now at 70.14.

Reflecting on the efficiency of the workforce at the company, Cloudflare Inc [NET] managed to generate an average of -$60,112 per employee. Receivables Turnover for the company is 7.55 with a Total Asset Turnover recorded at a value of 0.39.Cloudflare Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.89 and a Current Ratio set at 3.89.

Cloudflare Inc [NET] Institutonal Ownership Details

The top three institutional holders of NET stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2579%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $201.66 billion in NET stocks shares; and BERKSHIRE HATHAWAY INC, currently with $177.59 billion in NET stock with ownership which is approximately 5.7994%.

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