Cloudflare Inc. [NYSE:NET]’s prices rallied on Thursday.
Other data for the company is as follows:
- Stochastic %K of 94.82
- Weighted Alpha of 170.5
Day traders should note that the company’s next earning date is 11/05/2020. The company has price per sales of 38.30.
Wait and see
Holding a Market Cap of $13.36 billion, Cloudflare Inc. has seen a trading range over the last year of $14.50-$45.28.
For the last five days, NET is up from its last closing price. The average shares trading hands each day is 5.34M, with average 10-day volume coming in at 3.75 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for NET. When we apply the Elder Force Index to Cloudflare Inc., we are seeing an Elder Force Indicator number of 1792524.24.
Recent Performance
The company’s enterprise value has gone from $10.44B to $6.50B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, NET made a profit of 75.56 million. Cloudflare Inc. also saw quarter revenue growth year over year of 48.97%. In addition, the company has operating cash flow of -$36.65 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 43.35 compared to the 50-day moving average of 38.69. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. NET currently holds a 9-day RSI of 77.44%, while 100-day RSI stands at 58.14%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. NET’s 9-day MACD is 1.41 and the company’s 100-day MACD stands at 7.28.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 5.54% by insiders and 47.28% by institutions. Regarding institutional holdings, Venrock Management V, LLC owns 16.29%, while the second top holder, FMR, LLC, currently owns 12.83%.
Over the last six months, insiders have sold 13,334 with the most recent transaction from Kramer Douglas James, General Counsel, with a sell at price 41.67 per share.
Conclusion
Overall, the recommended rating for NET is Moderate Buy. Currently, the company has 16 analysts watching the stock, and the average quarterly earnings estimate is -0.05. Quarterly revenue estimates are averaging 103.17M with the high estimate reaching 103.52M and the low at 102.8M.
To review, the current 1-year target estimate is sitting at 46.33, while the current price 44.97. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
