Cloudflare (NYSE:NET) Reaches New 52-Week High - Here's Why

Key Points

• Cloudflare's shares reached a new 52-week high of $230.10 during trading, closing at $228.76, with a trading volume of over 1.4 million shares.
• Analysts have differing views on the stock, with target prices ranging from $170.00 to $240.00, resulting in an overall average rating of "Moderate Buy" and a price target of $191.28.
• In recent insider activity, CEO Matthew Prince and insider Michelle Zatlyn sold significant amounts of their stock, raising concerns as insiders have sold 665,738 shares totaling over $131 million in value.

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s share price hit a new 52-week high during trading on Monday . The stock traded as high as $230.10 and last traded at $228.76, with a volume of 1410420 shares trading hands. The stock had previously closed at $225.94.

Analyst Ratings Changes

Several brokerages have commented on NET. Oppenheimer reiterated an "outperform" rating and issued a $200.00 price target (up from $165.00) on shares of Cloudflare in a research note on Thursday, June 5th. Stifel Nicolaus increased their price target on shares of Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Guggenheim boosted their price objective on Cloudflare from $70.00 to $111.00 and gave the company a "sell" rating in a research note on Friday, August 1st. Morgan Stanley boosted 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. Finally, Cantor Fitzgerald boosted their price objective on Cloudflare from $162.00 to $199.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $191.28.

Cloudflare Trading Down 2.6%

The business has a 50 day simple moving average of $205.56 and a 200-day simple moving average of $165.78. The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $77.52 billion, a price-to-earnings ratio of -655.03 and a beta of 1.95.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) 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 firm had revenue of $512.32 million for the quarter, compared to analyst estimates of $501.58 million. During the same period last year, the company earned $0.20 EPS. The firm's quarterly 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. On average, equities analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 25,641 shares of Cloudflare stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $195.61, for a total value of $5,015,636.01. Following the transaction, the insider directly owned 14,575 shares of the company's stock, valued at $2,851,015.75. The trade was a 63.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, Director John Graham-Cumming sold 10,215 shares of Cloudflare stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $206.32, for a total value of $2,107,558.80. Following the completion of the transaction, the director directly owned 495,191 shares in the company, valued at $102,167,807.12. This represents a 2.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 690,738 shares of company stock worth $137,603,592 in the last quarter. 10.89% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cloudflare

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its position in Cloudflare by 2.1% during the 2nd quarter. Vanguard Group Inc. now owns 31,495,565 shares of the company's stock worth $6,167,776,000 after acquiring an additional 658,656 shares in the last quarter. Geode Capital Management LLC lifted its position in Cloudflare by 5.1% during the 2nd quarter. Geode Capital Management LLC now owns 5,536,679 shares of the company's stock worth $1,081,533,000 after acquiring an additional 270,227 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Cloudflare by 33.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company's stock worth $352,610,000 after acquiring an additional 786,063 shares in the last quarter. American Century Companies Inc. lifted its position in 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 acquiring an additional 779,819 shares in the last quarter. Finally, Norges Bank acquired a new position in Cloudflare during the 2nd quarter worth approximately $541,462,000. 82.68% of the stock is owned by institutional investors and hedge funds.

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.