Cloudflare (NYSE:NET) Stock Price Expected to Rise, BTIG Research Analyst Says

Key Points

• BTIG Research raised Cloudflare’s price target from $243 to $269 and kept a buy rating, implying about 14% upside from the current share price.
• Other analysts were mixed: Wells Fargo and Citigroup were upbeat, while Scotiabank, UBS, and Guggenheim were more cautious. Overall, Cloudflare has a Moderate Buy consensus with an average target of $241.32.
• Cloudflare’s latest quarter beat expectations, with $0.25 EPS on $639.76 million in revenue, up 33.5% year over year. The stock was also down 4.8% on the day and recent insider selling totaled 527,784 shares over the past 90 days.

Cloudflare (NYSE:NET - Get Free Report) had its price target hoisted by equities researchers at BTIG Research from $243.00 to $269.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. BTIG Research's price objective suggests a potential upside of 14.04% from the stock's current price.

A number of other analysts have also recently commented on the stock. Wells Fargo & Company upped their price target on shares of Cloudflare from $265.00 to $270.00 and gave the company an "overweight" rating in a research report on Wednesday, February 11th. Scotiabank dropped their price objective on Cloudflare from $255.00 to $225.00 and set a "sector perform" rating on the stock in a research note on Wednesday, February 11th. UBS Group restated a "neutral" rating and set a $220.00 target price on shares of Cloudflare in a research report on Wednesday, February 11th. Citigroup assumed coverage on Cloudflare in a research note on Wednesday, April 15th. They set a "buy" rating for the company. Finally, Guggenheim lifted their target price on Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a report on Wednesday, February 11th. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $241.32.

Cloudflare Stock Down 4.8%

Cloudflare stock opened at $235.88 on Wednesday. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. Cloudflare has a 52-week low of $158.83 and a 52-week high of $276.82. The firm has a 50 day moving average price of $214.74 and a two-hundred day moving average price of $201.01. The firm has a market cap of $83.38 billion, a price-to-earnings ratio of -943.50, a PEG ratio of 4,156.04 and a beta of 1.70.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The company had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. During the same period in the prior year, the firm posted $0.16 EPS. The company's quarterly revenue was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Insider Transactions at Cloudflare

In related news, Director Katrin Suder sold 293 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $252.92, for a total value of $74,105.56. Following the transaction, the director directly owned 37,430 shares in the company, valued at $9,466,795.60. This trade represents a 0.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 16,243 shares of Cloudflare stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $216.15, for a total transaction of $3,510,924.45. Following the completion of the sale, the insider directly owned 118,395 shares of the company's stock, valued at approximately $25,591,079.25. The trade was a 12.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 527,784 shares of company stock valued at $111,803,817. Company insiders own 10.89% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. Norges Bank bought a new stake in shares of Cloudflare during the fourth quarter worth about $718,316,000. Jennison Associates LLC boosted its stake in Cloudflare by 135.8% during the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after purchasing an additional 2,530,872 shares during the last quarter. Corient Private Wealth LLC increased its holdings in Cloudflare by 4,042.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after purchasing an additional 1,365,598 shares in the last quarter. Groupama Asset Managment increased its holdings in Cloudflare by 82.6% during the 3rd quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after purchasing an additional 950,000 shares in the last quarter. Finally, Vanguard Group Inc. raised its stake in shares of Cloudflare by 2.6% in the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after purchasing an additional 821,684 shares during the last quarter. 82.68% of the stock is owned by institutional investors.

Cloudflare Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.