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

Key Points

• Cloudflare, Inc. (NYSE:NET) has received a consensus rating of "Moderate Buy" from 28 research firms, with an average 12-month target price of $191.28.
• The company reported a 27.8% increase in quarterly revenue to $512.32 million, beating expectations and providing a positive outlook with FY 2025 EPS guidance between 0.850-0.860.
• Recent insider trading activity includes CFO Thomas J. Seifert selling 59,130 shares at around $200.30, reducing their ownership by nearly 20%.

Cloudflare, Inc. (NYSE:NET - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the twenty-eight research firms that are presently covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation, fifteen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price target among analysts that have covered the stock in the last year is $191.28.

A number of brokerages recently commented on NET. Oppenheimer reaffirmed an "outperform" rating and issued a $200.00 price target (up previously from $165.00) on shares of Cloudflare in a research note on Thursday, June 5th. Scotiabank raised their price objective on Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a research report on Friday, August 1st. Mizuho raised their price target on Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Cantor Fitzgerald raised their price target on Cloudflare from $162.00 to $199.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Finally, UBS Group lifted their price objective on Cloudflare from $145.00 to $200.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th.

Insider Buying and Selling

In related news, CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction that occurred on Thursday, July 10th. The stock was sold at an average price of $184.58, for a total value of $9,669,038.72. Following the transaction, the chief executive officer directly owned 381,213 shares of the company's stock, valued at approximately $70,364,295.54. The trade was a 12.08% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Thomas J. Seifert sold 59,130 shares of the business's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $200.30, for a total value of $11,843,739.00. Following the completion of the transaction, the chief financial officer directly owned 241,550 shares in the company, valued at approximately $48,382,465. This represents a 19.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 665,738 shares of company stock valued at $131,968,542 in the last 90 days. Corporate insiders own 10.89% of the company's stock.

Institutional Trading of Cloudflare

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

Cloudflare Price Performance

Shares of NET stock traded up $2.81 during trading on Friday, hitting $226.38. The company had a trading volume of 4,004,051 shares, compared to its average volume of 2,190,832. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock's 50-day moving average is $204.65 and its two-hundred day moving average is $165.07. The stock has a market capitalization of $78.89 billion, a price-to-earnings ratio of -665.82 and a beta of 1.95. Cloudflare has a 52 week low of $77.80 and a 52 week high of $230.10.

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