Cloudflare, Inc. (NET) Stock: A Technology Stock That’s Making Its Way For The Top

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Cloudflare, Inc. (NET) is headed up in the market in today’s trading session. The company, one that is focused in the technology industry, is presently priced at $16.73 after heading up 6.42% so far in today’s session. In terms of tech companies, there are a number of aspects that have the ability to generate gains in the market. One of the most common is news. Here are the recent trending headlines associated with NET:

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Oct-15-19 09:00AM Cloudflare Announces Date of Third Quarter 2019 Financial Results
Oct-10-19 10:11AM Here are the 10 biggest IPO and M&A deals from the Bay Area in Q3
Oct-09-19 10:16AM Dafina Toncheva Promoted to General Partner at U.S. Venture Partners
Oct-08-19 02:16PM Cloudflare Draws a Flurry of Buy Ratings, But 2 Key Analysts Sound Cautious
01:15PM Cloudflare Shares in Analysts’ Rating Focus as IPO Hush Period Ends

Nonetheless, any time investors are making a decision with regard to investing, investors should look into much more than just news, especially in the ever changing tech space. Here’s what’s happing when it comes to Cloudflare, Inc..

The Performance That NET Investors Have Experienced

While a gain in a single session, like the move that we’re seeing from Cloudflare, Inc. might lead to excitement in some investors, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It is always smart to look at trends for a period longer than a single trading day. In the case of NET, below are the returns on investment that we’ve seen:

  • Past 5 Sessions – In the past five trading sessions, NET has generated a change in value in the amount of 13.58%.
  • Monthly – The return from Cloudflare, Inc. over the past 30 days works out to -0.65%.
  • Past Three Months – Over the last 3 months, the company has generated a return of 0
  • Past Six Months – In the last 6 months, we have seen a change that equates to 0 from the company.
  • YTD – Since the open of this year NET has resulted in a ROI of -7.06%.
  • Annually – Lastly, in the last year, we’ve seen movement in the amount of 0 from NET. Over this period of time, the stock has sold at a high price of -24.23% and a low price of 15.38%.

Key Ratios

Looking at a few ratios having to do with a stock generally gives prospective traders a look of how dangerous and/or potentially profitable a stock pick might be. Below are some of the important ratios to consider when digging into NET.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors believe that the price of the stock is going to go down. In general, strong tech stocks can come with a lower short ratio. However, we tend to see a lot of short squeezes in the industry. Nonetheless, in regard to Cloudflare, Inc., the stock’s short ratio clocks in at 1.23.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to pay its debts as they mature based on current assets or quick assets. In the tech sector, many companies are heavily reliant on continued investor support as they work to bring new technologies to market, the quick and current ratios can look upsetting. However, several gems in the technology space do have positive current and quick ratios. As it relates to NET, the quick and current ratios work out to 2.10 and 2.10 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. as it relates to Cloudflare, Inc., the book to share value ratio is 0.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. In terms of NET, the cash to share value comes to 0.43.

Show Me The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in NET, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutional investors own 45.90% of NET. However, it’s important to note that the ownership held by institutions has seen a move of 13.79% in the past 3 months.
  • Insider Holdings – When it comes to insiders, those close to the company currently hold 0 of Cloudflare, Inc.. Insider ownership of the company has changed by 0 throughout the last quarter.

How Analysts Feel About Cloudflare, Inc.

Although it’s not a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their thoughts in order to validate your own before making investment decisions in the tech industry. Here are the recent moves that we have seen from analysts when it comes to NET.

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Oct-08-19 Initiated Wells Fargo Outperform $22.50
Oct-08-19 Initiated SunTrust Buy $23
Oct-08-19 Initiated RBC Capital Mkts Outperform $20
Oct-08-19 Initiated Oppenheimer Outperform $23
Oct-08-19 Initiated Needham Buy $22

What We’ve Seen In earnings results

What have ween seen from NET in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – Currently, analysts have expectations that Cloudflare, Inc. will create EPS that comes to -0.18, with -0.14 being reported in the report for the current quarter. Although this isn’t tide to earnings, since we are chatting about Wall St. analysts, Cloudflare, Inc. is presently rated a 2.00 on a scale from 1 to 5 where 1 is the worst average Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – In the past 5 years, Cloudflare, Inc. has reported a change in revenue that works out to be 0. Earnings per diluted share in the last 5 years have experienced a change of 0.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is often explained in today’s society, Cloudflare, Inc. has seen a change in earnings in the amount of 6.30%. The company has also moved the needle in terms of revenue that comes to a total of 48.80%.

Looking At Share Counts

Traders and investors tend to be interested in the amounts of shares both outstanding and available. With respect to Cloudflare, Inc., currently there are 298.60M with a float of 78.26M. These numbers mean that of the total of 298.60M shares of NET that are out there today, 78.26M are available to trade hands on the market.

I also like to follow the short percentage of the float. Think about it, when a large portion of the float available for trading is shorted, the overall opinion among traders is that the stock is headed for a deep dive. In regard to NET, the percentage of the float that is shorted currently sits at 5.53%. Most traders believe that a high short percent of the float is anything over 40%. In my research, I’ve found that any short ratio over 26% is generally a risky play.

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