Cloudflare, Inc. (NYSE:NET) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Cloudflare, Inc. has a consensus rating of "Moderate Buy" from 28 analysts, with 15 issuing buy ratings and an average one-year price target of $191.28.
• Insider selling has been notable, with CFO Thomas J. Seifert and CEO Matthew Prince selling significant portions of their holdings, collectively valued at over $17 million.
• The company's recent earnings report showed a 27.8% year-over-year revenue increase to $512.32 million, beating estimates and highlighting strong financial performance despite some negative margins.

Shares of Cloudflare, Inc. (NYSE:NET - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-eight analysts that are currently covering the company, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $191.28.

A number of research analysts recently issued reports on the company. Susquehanna dropped their price target on Cloudflare from $170.00 to $140.00 and set a "neutral" rating on the stock in a research note on Monday, May 12th. Mizuho upped their price target on Cloudflare from $220.00 to $240.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Morgan Stanley upped their target price on Cloudflare from $225.00 to $235.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Bank of America upped their price objective on Cloudflare from $235.00 to $240.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Cantor Fitzgerald increased their price target on Cloudflare from $162.00 to $199.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st.

Insider Buying and Selling

In other Cloudflare news, CFO Thomas J. Seifert sold 41,555 shares of the business's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $190.64, for a total transaction of $7,922,045.20. Following the sale, the chief financial officer directly owned 189,517 shares of the company's stock, valued at $36,129,520.88. The trade was a 17.98% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Matthew Prince sold 51,848 shares of the company's stock in a transaction dated Wednesday, August 20th. The shares were sold at an average price of $190.46, for a total transaction of $9,874,970.08. Following the completion of the sale, the chief executive officer directly owned 20,647 shares in the company, valued at approximately $3,932,427.62. The trade was a 71.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 731,705 shares of company stock valued at $138,296,322 in the last quarter. Insiders own 10.89% of the company's stock.

Hedge Funds Weigh In On Cloudflare

Several large investors have recently modified their holdings of NET. Mather Group LLC. increased its position in shares of Cloudflare by 1,188.2% during the first quarter. Mather Group LLC. now owns 219 shares of the company's stock worth $25,000 after acquiring an additional 202 shares in the last quarter. NBC Securities Inc. purchased a new stake in shares of Cloudflare during the 1st quarter valued at $27,000. GPS Wealth Strategies Group LLC grew its holdings in shares of Cloudflare by 213.4% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock valued at $29,000 after purchasing an additional 175 shares during the last quarter. Twin Peaks Wealth Advisors LLC bought a new position in shares of Cloudflare during the 2nd quarter valued at $29,000. Finally, MassMutual Private Wealth & Trust FSB increased its position in shares of Cloudflare by 115.4% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock valued at $30,000 after acquiring an additional 142 shares during the period. Institutional investors own 82.68% of the company's stock.

Cloudflare Trading Up 1.5%

NET stock opened at $198.90 on Wednesday. The firm has a fifty day moving average price of $194.45 and a 200 day moving average price of $157.42. Cloudflare has a fifty-two week low of $74.88 and a fifty-two week high of $219.00. The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14. The firm has a market cap of $69.31 billion, a PE ratio of -585.00 and a beta of 1.84.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.03. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The business had revenue of $512.32 million for the quarter, compared to analyst estimates of $501.58 million. During the same quarter in the previous year, the firm earned $0.20 earnings per share. The company's revenue was up 27.8% on a year-over-year basis. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Sell-side analysts anticipate that Cloudflare will post -0.11 earnings per share for the current fiscal year.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.

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