Cloudflare (NYSE:NET) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Cloudflare from “hold” to “buy.” MarketBeat reports a “Moderate Buy” consensus rating and a $320.19 average price target.
• Cloudflare’s latest quarterly results exceeded expectations, with adjusted EPS of $0.29 versus $0.27 expected and revenue of $696.06 million versus $664.66 million forecast; revenue rose 35.9% year over year.
• NET traded at $299.69, giving the company a market capitalization of about $105.9 billion, while insiders sold approximately $168.5 million of stock over the past 90 days. Institutional investors own 82.68% of the company.

Cloudflare (NYSE:NET - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

NET has been the subject of a number of other research reports. Cantor Fitzgerald reiterated a "neutral" rating and issued a $250.00 price objective on shares of Cloudflare in a research report on Monday, August 3rd. BTIG Research increased their price objective on Cloudflare from $314.00 to $382.00 and gave the company a "buy" rating in a research note on Friday, August 7th. New Street Research reissued a "market outperform" rating on shares of Cloudflare in a research note on Monday, June 15th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a report on Friday, July 17th. Finally, Raymond James Financial initiated coverage on shares of Cloudflare in a research report on Tuesday, July 7th. They set a "strong-buy" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $320.19.

Cloudflare Stock Performance

NYSE NET traded down $8.54 on Friday, reaching $299.69. 2,545,818 shares of the company's stock traded hands, compared to its average volume of 4,126,205. The firm has a market cap of $105.93 billion, a price-to-earnings ratio of -516.71, a P/E/G ratio of 189.27 and a beta of 1.65. The stock has a 50 day moving average price of $274.42 and a 200-day moving average price of $231.62. Cloudflare has a fifty-two week low of $158.83 and a fifty-two week high of $332.22. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82.

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

Insiders Place Their Bets

In other Cloudflare news, CEO Matthew Prince sold 52,422 shares of Cloudflare stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $294.63, for a total transaction of $9,723,673.89. Following the sale, the insider owned 69,775 shares of the company's stock, valued at approximately $20,557,808.25. This represents a 32.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 640,531 shares of company stock valued at $168,474,753 over the last 90 days. 10.66% of the stock is owned by company insiders.

Institutional Trading of Cloudflare

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NET. Empowered Funds LLC grew its stake in shares of Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock valued at $750,000 after buying an additional 1,696 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in Cloudflare during the 2nd quarter worth about $424,000. Cerity Partners LLC boosted its holdings in Cloudflare by 30.1% during the 2nd quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock valued at $5,391,000 after acquiring an additional 6,363 shares during the period. Sei Investments Co. boosted its holdings in Cloudflare by 40.1% during the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company's stock valued at $64,432,000 after acquiring an additional 94,112 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its holdings in Cloudflare by 14.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock valued at $3,224,000 after acquiring an additional 2,093 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

About Cloudflare

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.

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