Cloudflare (NYSE:NET) Stock Price Expected to Rise, BTIG Research Analyst Says

Key Points

• BTIG Research raised Cloudflare’s price target from $382 to $413 and maintained a “buy” rating, implying 14.69% upside from the prior close.
• Cloudflare exceeded quarterly expectations, reporting $0.29 in earnings per share versus a $0.27 consensus estimate and $696.06 million in revenue, up 35.9% year over year.
• Analyst sentiment remains broadly positive, with MarketBeat assigning the stock a “Moderate Buy” consensus rating and an average price target of $326.33, although insiders sold about $115 million of shares during the past quarter.

Cloudflare (NYSE:NET - Get Free Report) had its price objective boosted by equities researchers at BTIG Research from $382.00 to $413.00 in a report released on Tuesday, Benzinga reports. The brokerage currently has a "buy" rating on the stock. BTIG Research's price objective suggests a potential upside of 14.69% from the company's previous close.

A number of other equities analysts also recently commented on NET. Jefferies Financial Group set a $350.00 price objective on shares of Cloudflare in a research note on Friday, August 7th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cloudflare in a research report on Friday, July 17th. Oppenheimer lifted their price target on Cloudflare from $330.00 to $380.00 and gave the company an "outperform" rating in a report on Friday, August 7th. UBS Group boosted their price target on Cloudflare from $250.00 to $350.00 and gave the stock a "neutral" rating in a research report on Friday, August 7th. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and set a $389.00 price objective on shares of Cloudflare in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $326.33.

Cloudflare Price Performance

Shares of NET stock opened at $360.10 on Tuesday. The company has a market capitalization of $127.28 billion, a P/E ratio of -620.86, a P/E/G ratio of 277.63 and a beta of 1.65. The company's 50-day simple moving average is $310.01 and its two-hundred day simple moving average is $256.66. Cloudflare has a one year low of $158.83 and a one year high of $367.43. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same quarter in the previous year, the firm posted $0.21 earnings per share. The company's revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, equities analysts anticipate that Cloudflare will post 0.03 EPS for the current year.

Insider Buying and Selling at Cloudflare

In other news, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total value of $9,156,022.29. Following the sale, the insider owned 69,775 shares in the company, valued at $19,357,678.25. This represents a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of the firm's stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $332.46, for a total transaction of $3,324,600.00. Following the transaction, the chief financial officer directly owned 107,902 shares of the company's stock, valued at approximately $35,873,098.92. This trade represents a 8.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 392,833 shares of company stock worth $115,040,919. 10.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cloudflare

Institutional investors have recently modified their holdings of the stock. Jennison Associates LLC boosted its stake in shares of Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after buying an additional 2,530,872 shares during the last quarter. Amundi boosted its position in Cloudflare by 2.0% in the 1st quarter. Amundi now owns 1,707,256 shares of the company's stock worth $352,275,000 after purchasing an additional 32,804 shares in the last quarter. Corient Private Wealth LLC boosted its position in Cloudflare by 4,042.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after purchasing an additional 1,365,598 shares in the last quarter. Pictet Asset Management Holding SA increased its holdings in shares of Cloudflare by 17.6% during the 1st quarter. Pictet Asset Management Holding SA now owns 1,381,985 shares of the company's stock valued at $284,900,000 after purchasing an additional 206,506 shares in the last quarter. Finally, National Pension Service lifted its stake in shares of Cloudflare by 1.6% in the 2nd quarter. National Pension Service now owns 959,987 shares of the company's stock valued at $235,466,000 after purchasing an additional 15,546 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Company Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.

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