Cloudflare (NYSE:NET) Earns "Sell (D-)" Rating from Weiss Ratings

Key Points

• Cloudflare's stock has received a "Sell (D-)" rating from Weiss Ratings, indicating potential concerns about its investment value.
• Despite the negative rating from Weiss, other analysts have varying perspectives, with multiple price target increases and ratings of "Buy" or "Overweight" from firms like Robert W. Baird and Wells Fargo.
• Cloudflare reported a revenue increase of 27.8% year-over-year and exceeded earnings estimates in its last quarterly earnings report, pointing towards robust financial performance despite market ratings.

Cloudflare (NYSE:NET - Get Free Report)'s stock had its "sell (d-)" rating restated by equities researchers at Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

NET has been the subject of a number of other reports. Robert W. Baird boosted their price target on Cloudflare from $148.00 to $175.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. KeyCorp boosted their price target on Cloudflare from $210.00 to $235.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Cowen reissued a "buy" rating on shares of Cloudflare in a report on Monday, June 16th. Stifel Nicolaus upped their target price on Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Wells Fargo & Company upped their target price on Cloudflare from $225.00 to $250.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Cloudflare currently has an average rating of "Moderate Buy" and an average target price of $196.54.

Cloudflare Price Performance

NET stock traded up $2.95 during midday trading on Wednesday, hitting $220.34. 575,558 shares of the stock were exchanged, compared to its average volume of 3,376,615. The stock's 50-day moving average price is $211.07 and its 200-day moving average price is $173.21. The stock has a market cap of $76.78 billion, a price-to-earnings ratio of -648.19 and a beta of 1.99. Cloudflare has a fifty-two week low of $81.63 and a fifty-two week high of $230.10. 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 (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate 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 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 firm posted $0.20 earnings per share. Cloudflare'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. Research analysts predict that Cloudflare will post -0.11 earnings per share for the current year.

Insider Activity

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of the business's stock in a transaction dated Thursday, September 25th. The stock was sold at an average price of $212.49, for a total value of $5,448,456.09. Following the completion of the sale, the insider owned 14,575 shares of the company's stock, valued at $3,097,041.75. The trade was a 63.76% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Douglas James Kramer sold 9,000 shares of the business's stock in a transaction dated Wednesday, October 1st. The stock was sold at an average price of $213.48, for a total value of $1,921,320.00. Following the completion of the sale, the insider directly owned 132,185 shares of the company's stock, valued at $28,218,853.80. This represents a 6.37% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 674,636 shares of company stock valued at $135,957,067. 10.89% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cloudflare

Institutional investors have recently made changes to their positions in the business. Mather Group LLC. increased its stake in shares of Cloudflare by 1,188.2% in the first quarter. Mather Group LLC. now owns 219 shares of the company's stock worth $25,000 after purchasing an additional 202 shares during the period. 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% during the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock valued at $29,000 after acquiring an additional 175 shares during the period. Twin Peaks Wealth Advisors LLC bought a new position in Cloudflare during the second quarter valued at about $29,000. Finally, Quaker Wealth Management LLC increased its stake in Cloudflare by 218.6% during the second quarter. Quaker Wealth Management LLC now owns 166 shares of the company's stock valued at $33,000 after acquiring an additional 306 shares during the period. 82.68% of the stock is currently owned by institutional investors.

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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