Cloudflare (NYSE:NET) Stock Price Down 3.3% - Here's What Happened

Key Points

• Cloudflare's stock price fell 3.3%, closing at $217.22 after reaching a low of $217.59, with trading volume down significantly by 94% from the average.
• Analysts have varied ratings for Cloudflare, with one Strong Buy, fifteen Buy, nine Hold, and four Sell ratings, and a consensus target price of $191.28.
• The company reported $512.32 million in revenue for the last quarter, surpassing estimates and showing a 27.8% increase year-over-year.

Shares of Cloudflare, Inc. (NYSE:NET - Get Free Report) dropped 3.3% during mid-day trading on Friday . The company traded as low as $217.59 and last traded at $217.22. Approximately 190,818 shares were traded during trading, a decline of 94% from the average daily volume of 3,393,755 shares. The stock had previously closed at $224.56.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Robert W. Baird boosted their price objective on shares of Cloudflare from $148.00 to $175.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. Stifel Nicolaus increased their target price on shares of Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a report on Friday, August 1st. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cloudflare in a report on Saturday, September 27th. Scotiabank raised their price objective on Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a research note on Friday, August 1st. Finally, 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. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Cloudflare has an average rating of "Hold" and a consensus target price of $191.28.

Cloudflare Stock Performance

The firm has a market cap of $75.60 billion, a PE ratio of -638.08 and a beta of 1.99. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14. The stock has a 50-day moving average price of $209.90 and a 200 day moving average price of $170.73.

Cloudflare (NYSE:NET - Get Free Report) last released 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 the consensus estimate of $501.58 million. During the same period in the previous year, the firm earned $0.20 earnings per share. Cloudflare'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. Research analysts forecast that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction dated Thursday, September 11th. The stock was sold at an average price of $226.46, for a total transaction of $11,862,880.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Douglas James Kramer sold 9,000 shares of the business's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $213.48, for a total value of $1,921,320.00. Following the sale, the insider directly owned 132,185 shares of the company's stock, valued at approximately $28,218,853.80. This trade represents a 6.37% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 727,020 shares of company stock worth $146,028,939. 10.89% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in NET. Norges Bank bought a new position in Cloudflare during the 2nd quarter valued at $541,462,000. Groupama Asset Managment bought a new position in shares of Cloudflare during the second quarter worth about $225,204,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Cloudflare by 33.5% during the first 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 position in Cloudflare during the 1st quarter worth approximately $88,203,000. Finally, American Century Companies Inc. lifted its holdings 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 buying an additional 779,819 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

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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