Cloudflare (NYSE:NET) Earns Buy Rating from BTIG Research

Key Points

• BTIG Research reaffirmed a Buy rating on Cloudflare with a $243 price target, implying roughly a 5.47% downside from the stock's recent ~$257 price.
• Cloudflare beat Q1 expectations—revenue rose about 33.5% to $639.8M and non‑GAAP EPS was $0.25—while management raised FY2026 EPS guidance to $1.19–$1.20 (Q2 EPS guidance $0.27), signaling expected margin improvement.
• The company announced ~1,100 layoffs (≈20% of staff) as it shifts to an "AI‑first" model, and insiders collectively sold large positions (638,766 shares in the quarter), creating near‑term execution and sentiment risks.

Cloudflare (NYSE:NET - Get Free Report)'s stock had its "buy" rating reaffirmed by stock analysts at BTIG Research in a report released on Friday,Benzinga reports. They presently have a $243.00 target price on the stock. BTIG Research's target price would indicate a potential downside of 5.47% from the company's current price.

A number of other brokerages have also weighed in on NET. KeyCorp lowered Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. Needham & Company LLC cut their price objective on Cloudflare from $285.00 to $250.00 and set a "buy" rating on the stock in a research report on Wednesday, February 11th. Royal Bank Of Canada lifted their price objective on Cloudflare from $230.00 to $240.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 11th. Jefferies Financial Group initiated coverage on Cloudflare in a research report on Wednesday, April 15th. They issued a "buy" rating on the stock. Finally, Guggenheim lifted their price objective on Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a research report on Wednesday, February 11th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $232.62.

Cloudflare Stock Up 3.4%

NYSE NET opened at $257.05 on Friday. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98. The stock has a market capitalization of $90.48 billion, a PE ratio of -886.35 and a beta of 1.67. Cloudflare has a 1 year low of $121.46 and a 1 year high of $260.00. The business's 50-day moving average is $204.88 and its 200 day moving average is $200.83.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million for the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.Cloudflare's quarterly revenue was up 33.5% on a year-over-year basis. During the same period last year, the firm earned $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. Sell-side analysts forecast that Cloudflare will post -0.11 earnings per share for the current year.

Insider Activity

In other news, CFO Thomas J. Seifert sold 41,557 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $185.04, for a total value of $7,689,707.28. Following the completion of the transaction, the chief financial officer owned 85,452 shares in the company, valued at $15,812,038.08. This trade represents a 32.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Michelle Zatlyn sold 35,080 shares of the firm's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $187.39, for a total value of $6,573,641.20. Following the completion of the transaction, the insider owned 34,514 shares of the company's stock, valued at approximately $6,467,578.46. The trade was a 50.41% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 638,766 shares of company stock worth $125,757,221 in the last quarter. 10.89% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in NET. Rakuten Investment Management Inc. purchased a new stake in Cloudflare during the 3rd quarter valued at $138,660,000. Allianz Asset Management GmbH boosted its stake in Cloudflare by 322.4% during the 3rd quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock valued at $13,987,000 after purchasing an additional 49,749 shares during the last quarter. National Pension Service boosted its stake in Cloudflare by 1.0% during the 3rd quarter. National Pension Service now owns 618,662 shares of the company's stock valued at $132,759,000 after purchasing an additional 5,939 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its stake in Cloudflare by 25.8% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after purchasing an additional 336,768 shares during the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its stake in Cloudflare by 20.1% during the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 170,186 shares of the company's stock valued at $36,520,000 after purchasing an additional 28,495 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q1 results beat expectations — revenue rose ~33.5% to $639.8M and non-GAAP EPS of $0.25 topped consensus, showing strong demand across the business. This supports Cloudflare’s growth narrative. Cloudflare (NET) Q1 Earnings and Revenues Beat Estimates
• Positive Sentiment: Aggressive FY/Q2 EPS guidance — management raised FY 2026 EPS to $1.19–1.20 and set Q2 EPS at $0.27, both well above consensus EPS expectations, indicating management expects margin improvement (partly from cost actions). Cloudflare Announces First Quarter 2026 Financial Results
• Positive Sentiment: Industry recognition and AI positioning — recent Forrester leadership placement and ongoing promotion of Cloudflare’s edge + AI strategy add credibility to its long-term TAM expansion in AI infrastructure and security. Why Cloudflare (NET) Is Up 17.3% After Forrester Names It an Edge Platform Leader
• Neutral Sentiment: Partnerships to bolster AI security — collaboration with Wiz targets "shadow AI" risks for customers, which could support product stickiness but is a longer‑horizon benefit. Cloudflare (NET) Partners with Wiz to Secure AI Applications Against Shadow AI
• Negative Sentiment: Large workforce cut — Cloudflare announced ~1,100 layoffs (≈20% of staff) as it shifts to an "agentic AI‑first" operating model. While framed as strategic, layoffs create short-term execution and morale risk and signal significant restructuring. Cloudflare to cut 20% jobs, quarterly revenue forecast falls short
• Negative Sentiment: Revenue guidance and market reaction — Q2 revenue guidance was roughly in line but just shy of some estimates, and investors focused on the combination of conservative near-term revenue outlook plus layoffs, driving a sharp after‑hours selloff. Cloudflare stock dives on Q1 earnings, company says AI is 'biggest tailwind' in history
• Negative Sentiment: Insider selling noted — recent director/officer sales were reported, which investors sometimes view as a cautionary signal (though context and size vary). Insider Selling: Cloudflare NYSE: NET Director Sells $558,381.60 in 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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