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

Key Points

• Cloudflare, Inc. has received a consensus recommendation of "Moderate Buy" from 28 analysts, with an average 12-month target price of $196.54.
• Insider trading activity included CFO Thomas J. Seifert and CEO Matthew Prince selling significant shares, resulting in a 19.67% and 72.26% decrease in their ownership, respectively.
• Cloudflare reported earnings of $0.21 per share for the last quarter, exceeding analyst expectations, with a revenue of $512.32 million, marking a 27.8% year-over-year increase.

Shares of Cloudflare, Inc. (NYSE:NET - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the twenty-eight analysts that are currently covering the company, MarketBeat Ratings reports. Three investment analysts have rated the stock with a sell recommendation, nine have issued a hold recommendation, fifteen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among analysts that have covered the stock in the last year is $196.5417.

A number of brokerages recently issued reports on NET. Royal Bank Of Canada upped their price objective on shares of Cloudflare from $210.00 to $228.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. JMP Securities upped their price target on Cloudflare from $180.00 to $225.00 and gave the stock a "market outperform" rating in a research note on Monday, July 28th. Morgan Stanley raised their price objective on Cloudflare from $225.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Mizuho boosted their target price on Cloudflare from $220.00 to $240.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Finally, Wells Fargo & Company increased their price target on Cloudflare from $225.00 to $250.00 and gave the company an "overweight" rating in a report on Friday, August 1st.

Insider Activity

In other Cloudflare news, CFO Thomas J. Seifert sold 59,130 shares of the company's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the completion of the sale, the chief financial officer directly owned 241,550 shares in the company, valued at $48,382,465. This represents a 19.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction dated Monday, August 18th. The shares were sold at an average price of $200.43, for a total value of $10,499,325.12. Following the completion of the sale, the chief executive officer directly owned 20,111 shares in the company, valued at approximately $4,030,847.73. This represents a 72.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 624,772 shares of company stock worth $128,386,880. Insiders own 10.89% of the company's stock.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently modified their holdings of NET. GAMMA Investing LLC increased its position in Cloudflare by 86.8% during the first quarter. GAMMA Investing LLC now owns 1,093 shares of the company's stock worth $123,000 after acquiring an additional 508 shares during the period. Wealthedge Investment Advisors LLC grew its position in Cloudflare by 64.5% in the 1st quarter. Wealthedge Investment Advisors LLC now owns 12,132 shares of the company's stock worth $1,367,000 after purchasing an additional 4,755 shares during the last quarter. American Century Companies Inc. increased its holdings in shares of Cloudflare by 34.5% during the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after purchasing an additional 779,819 shares during the period. Independent Solutions Wealth Management LLC raised its position in shares of Cloudflare by 293.3% during the second quarter. Independent Solutions Wealth Management LLC now owns 15,059 shares of the company's stock valued at $2,949,000 after buying an additional 11,230 shares during the last quarter. Finally, Castle Rock Wealth Management LLC lifted its stake in shares of Cloudflare by 10.5% in the second quarter. Castle Rock Wealth Management LLC now owns 12,943 shares of the company's stock valued at $2,568,000 after buying an additional 1,229 shares during the period. 82.68% of the stock is owned by institutional investors.

Cloudflare Trading Up 0.3%

NYSE:NET opened at $218.11 on Thursday. The company has a market capitalization of $76.01 billion, a P/E ratio of -641.50 and a beta of 1.99. The stock's 50 day moving average price is $212.53 and its 200 day moving average price is $176.89. The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14. Cloudflare has a 52 week low of $85.60 and a 52 week high of $230.10.

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

About Cloudflare

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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