Cloudflare (NYSE: NET), like most tech stocks in 2022, has not had a very productive trading year, as the stock is down over 59% year-to-date (YTD). Their latest earnings report in August highlighted a negative net margin and a negative return on equity, missing analysts’ estimates.
More recently, the firms CEO Matthew Prince kept busy during the three days spanning October 5 to October 7, disposing of a hefty amount of stock in his own company. In other words, Prince sold roughly $9.2 million worth of shares over three days, according to an SEC filing.
In addition, the sales price for the shares varied from $55.47 to $62.60; however, this was simply a continuation of the selling trend Prince had undertaken since August 2022, only to be followed by Kramer Douglas James, a member of the General Counsel of the company. Cloudflare insider selling since August 2022. Source: Finviz NET chart and analysis
As for NETs recent market performance, the short-term trend is neutral, while the long-term trend is still negative, with the shares remaining below all moving averages. Over the past month, NET traded in a wide range from $50.37 to $65.29. Technical analysis indicates a resistance zone from $55.40 to $55.90. NET 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here. Related Analysts are split on whether new US semiconductor restrictions are a blessing or curse for stocks Tesla delivers record number of China-made EVs in September AMD drops over 5% in premarket after Q3 sales miss estimates
Analysts rate the stock a moderate buy, with the average price in the next 12 months reaching $89.40, 73.96% higher than the current trading price of $51.39. Notably, out of 16 Wall Street analysts, 6 have a buy rating, and 10 have a hold rating. Wall Street analysts price targets for NET. Source: TipRanks
While the firm has a strong vision for the future, and execution has been subpar recently, at least according to the latest earnings report, any hiccups will be severely punished in this market. Perhaps that was one of the reasons why Prince decided to sell over $9 million worth of shares of the stock; however, Wall Street analysts still believe the firm is a solid long-term buy.
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