Cloudflare Intrinsic Value Calculation – Cloudflare Director Ledbetter Indirectly Sells 30.2K Shares of Company
November 30, 2023
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Cloudflare ($NYSE:NET), a company that provides a wide range of services for websites and applications, recently reported that its director, Ledbetter, has indirectly sold 30.2K shares of the company. Ledbetter was initially granted these shares as part of his directorship package. Cloudflare is a publicly traded company on the New York Stock Exchange that offers a variety of services such as content delivery networks, distributed web applications, DNS services, and more. The company has experienced massive growth since its inception, resulting in the rise of its stock prices.
This has made it a lucrative investment for many investors, leading to Ledbetter’s decision to sell his shares. It remains to be seen if Ledbetter’s decision will have a negative or positive impact on the company’s stock prices in the future.
Price History
On Tuesday, CLOUDFLARE‘s stock opened at $73.2 and closed at $74.5, up by 0.8% from previous closing price of 74.0. It has been reported that the company’s Director, Ledbetter, indirectly sold around 30.2K shares of the company. This is a significant amount of shares, suggesting that Ledbetter may be looking to divest from the company.
It is unclear why Ledbetter has decided to sell his stake in CLOUDFLARE, but it could be a sign of uncertainty in the company’s future prospects. Only time will tell if this sale will affect the stock price of CLOUDFLARE in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cloudflare. More…
| Total Revenues | Net Income | Net Margin |
| 1.21k | -202 | -13.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cloudflare. More…
| Operations | Investing | Financing |
| 247.09 | -104.51 | -193.96 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cloudflare. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.59k | 1.89k | 2.09 |
Key Ratios Snapshot
Some of the financial key ratios for Cloudflare are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 45.9% | – | -15.8% |
| FCF Margin | ROE | ROA |
| 8.5% | -17.8% | -4.6% |
Analysis – Cloudflare Intrinsic Value Calculation
GoodWhale has been analyzing Cloudflare‘s financials, and have come to the conclusion that the intrinsic value of a Cloudflare share is around $129.6. This value was calculated using our proprietary Valuation Line, which takes into account the company’s current earnings, future growth prospects, and other financial metrics. However, at the time of writing, Cloudflare’s stock is traded at $74.5, meaning that it is undervalued by 42.5%. This discrepancy provides an ideal opportunity for investors to acquire the stock at a discounted price, and then benefit from a potential future rise in its value. Therefore, GoodWhale believe that Cloudflare’s stock is currently a great option for investors looking to diversify their portfolio and capitalize on a potential future increase in value. More…
Peers
Cloudflare Inc is a leading provider of internet security and performance services. Its main competitors are Okta Inc, Ubiquitous AI Corp, NetLinkz Ltd.
– Okta Inc ($NASDAQ:OKTA)
Okta, Inc. is a publicly traded company with a market capitalization of $8.27 billion as of April 2021. The company provides a platform that helps organizations manage and secure user identities and access to applications. Okta’s products are used by more than 8,000 customers, including some of the world’s largest companies. The company has a negative return on equity of 9.74% as of April 2021.
– Ubiquitous AI Corp ($TSE:3858)
Ubiquitous AI Corp is a leading provider of artificial intelligence technology and services. The company has a market cap of 4.16B as of 2022 and a return on equity of 0.0%. Ubiquitous AI Corp is a pioneer in the development and application of artificial intelligence technology. The company’s technology is used in a wide range of industries, including automotive, healthcare, finance, manufacturing, and retail.
– NetLinkz Ltd ($ASX:NET)
NetLinkz Ltd is a publicly traded company with a market capitalization of 81.85 million as of 2022. The company has a Return on Equity of -33.68%. NetLinkz is a provider of software-defined networking and security solutions. The company’s products are used by enterprises, service providers, and government organizations to improve network performance and security.
Summary
Cloudflare, a leading provider of cloud-based services and security solutions, has seen its stock price increase significantly in recent months due to strong investor sentiment. Recently, director Ledbetter has sold 30.2K shares he indirectly holds in the company. This news has raised questions among investors as to the company’s future prospects. Analysts suggest that the decision to sell could be indicative of a bearish outlook on the stock, though this cannot be definitively determined.
Investors should carefully consider all available information when making investment decisions, including financial reports, analyst ratings, and other news available. It is important to note that the sale of 30.2K shares may not significantly impact the company’s performance, and may simply be indicative of an individual’s investment strategy.
