Cloudflare (NYSE:NET) Sets New 12-Month High - Should You Buy?

Key Points

• Cloudflare's stock reached a new 52-week high at $220.75 during mid-day trading, reflecting strong investor interest and trading volume of 770,783 shares.
• Recent analyst upgrades included price target increases from multiple firms, with Wells Fargo raising its target from $225 to $250, indicating strong confidence in the company's growth potential.
• Cloudflare reported quarterly earnings that exceeded expectations, with a 27.8% year-over-year revenue growth, while also setting FY 2025 EPS guidance at 0.850-0.860.

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $220.75 and last traded at $217.85, with a volume of 770783 shares traded. The stock had previously closed at $214.43.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the stock. Wells Fargo & Company lifted their price target on shares of Cloudflare from $225.00 to $250.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. KeyCorp lifted their price objective on shares of Cloudflare from $210.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Cantor Fitzgerald lifted their target price on shares of Cloudflare from $162.00 to $199.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Bank of America upped their target price on shares of Cloudflare from $235.00 to $240.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Oppenheimer restated an "outperform" rating and set a $200.00 target price (up from $165.00) on shares of Cloudflare in a research report on Thursday, June 5th. One equities research 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 issued a Sell rating to the company. Based on data from MarketBeat.com, Cloudflare has a consensus rating of "Moderate Buy" and an average target price of $191.28.

Cloudflare Stock Performance

The stock's 50-day moving average price is $198.18 and its 200-day moving average price is $159.59. 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 company has a market capitalization of $76.38 billion, a P/E ratio of -644.96 and a beta of 1.95.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping 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 business had revenue of $512.32 million for the quarter, compared to analysts' expectations of $501.58 million. During the same quarter last year, the company earned $0.20 EPS. The company's revenue for the quarter 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. As a group, equities analysts expect that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Buying and Selling at Cloudflare

In related news, insider Michelle Zatlyn sold 25,641 shares of the firm's stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $195.61, for a total transaction of $5,015,636.01. Following the completion of the sale, the insider directly owned 14,575 shares in the company, valued at approximately $2,851,015.75. This trade represents a 63.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Matthew Prince sold 536 shares of Cloudflare stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $194.84, for a total transaction of $104,434.24. Following the completion of the transaction, the chief executive officer directly owned 20,111 shares in the company, valued at approximately $3,918,427.24. This represents a 2.60% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 687,029 shares of company stock valued at $130,970,115 in the last 90 days. Corporate insiders own 10.89% of the company's stock.

Hedge Funds Weigh In On Cloudflare

Large investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in Cloudflare in the 2nd quarter valued at $541,462,000. Groupama Asset Managment bought a new stake in shares of Cloudflare in the 2nd quarter worth about $225,204,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Cloudflare by 33.5% in 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 purchasing an additional 786,063 shares during the last quarter. Nuveen LLC bought a new stake in shares of Cloudflare in the 1st quarter worth about $88,203,000. Finally, American Century Companies Inc. grew its holdings in shares of Cloudflare by 34.5% in 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 last quarter. 82.68% of the stock is currently 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.

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