Cloudflare, Inc. (NYSE:NET) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Cloudflare has a “Moderate Buy” consensus rating from 33 brokerages, with 21 buys, seven holds, four sells and one strong buy. The average 12-month price target is $320.19, while recent targets range from $350 to $394.
• Cloudflare beat quarterly expectations, reporting $0.29 EPS versus the $0.27 consensus and revenue of $696.06 million versus $664.66 million expected. Revenue increased 35.9% year over year, although the company remains unprofitable with a negative net margin.
• Insiders sold approximately $168.5 million of stock over the past 90 days, while institutional investors and hedge funds own 82.68% of the company. Shares opened at $278.88, down 2.0%, with a market capitalization of about $98.6 billion.

Shares of Cloudflare, Inc. (NYSE:NET - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the thirty-three brokerages that are covering the company, MarketBeat.com reports. Four investment analysts have rated the stock with a sell recommendation, seven have assigned a hold recommendation, twenty-one have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $320.1852.

Several equities analysts recently weighed in on NET shares. The Goldman Sachs Group reissued a "buy" rating and set a $389.00 price objective on shares of Cloudflare in a research report on Friday, August 7th. Jefferies Financial Group set a $350.00 price target on Cloudflare in a report on Friday, August 7th. BTIG Research increased their price objective on Cloudflare from $314.00 to $382.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Zacks Research downgraded shares of Cloudflare from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 14th. Finally, Citizens Jmp reaffirmed a "market outperform" rating and set a $394.00 target price on shares of Cloudflare in a research report on Monday, August 31st.

Cloudflare Trading Down 2.0%

NYSE:NET opened at $278.88 on Friday. The company's 50 day moving average is $280.40 and its 200-day moving average is $235.13. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare has a 12 month low of $158.83 and a 12 month high of $332.22. The firm has a market cap of $98.58 billion, a price-to-earnings ratio of -480.83, a P/E/G ratio of 228.00 and a beta of 1.66.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02. The business had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. Cloudflare's quarterly revenue was up 35.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.21 EPS. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Equities analysts anticipate that Cloudflare will post 0.03 EPS for the current year.

Insider Buying and Selling

In other news, Director John Graham-Cumming sold 2,520 shares of the company's stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $303.97, for a total transaction of $766,004.40. Following the completion of the transaction, the director owned 494,909 shares of the company's stock, valued at approximately $150,437,488.73. This represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 2,538 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $304.68, for a total transaction of $773,277.84. Following the completion of the sale, the insider owned 112,082 shares of the company's stock, valued at approximately $34,149,143.76. The trade was a 2.21% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 640,531 shares of company stock worth $168,474,753. 10.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cloudflare

Several large investors have recently added to or reduced their stakes in NET. Cornerstone Financial Management LLC grew its holdings in shares of Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock worth $29,000 after purchasing an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new position in shares of Cloudflare in the second quarter valued at $30,000. Wiser Advisor Group LLC acquired a new position in shares of Cloudflare in the third quarter valued at $26,000. HM Payson & Co. bought a new position in Cloudflare in the fourth quarter worth $25,000. Finally, CX Institutional lifted its position in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after purchasing an additional 44 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

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.

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