Cloudflare (NYSE:NET) Hits New 12-Month High on Analyst Upgrade

Key Points

• Cloudflare shares reached a new 52-week high after BTIG Research raised its price target from $382 to $413 and maintained a Buy rating. The stock traded as high as $370.35.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $326.33, while several firms recently increased their targets.
• Valuation and profitability remain key risks: Cloudflare reported 35.9% year-over-year revenue growth and beat earnings estimates, but continues to post a net loss. Insiders also sold $115 million of stock over the last quarter.

Cloudflare, Inc. (NYSE:NET - Get Free Report)'s share price reached a new 52-week high on Tuesday after BTIG Research raised their price target on the stock from $382.00 to $413.00. BTIG Research currently has a buy rating on the stock. Cloudflare traded as high as $370.35 and last traded at $367.0080, with a volume of 228908 shares traded. The stock had previously closed at $359.49.

Several other analysts have also weighed in on the company. Royal Bank Of Canada upped their target price on Cloudflare from $290.00 to $346.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Scotiabank lifted their price target on shares of Cloudflare from $300.00 to $390.00 and gave the stock an "outperform" rating in a report on Friday, August 7th. UBS Group lifted their target price on shares of Cloudflare from $250.00 to $350.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. Wall Street Zen lowered Cloudflare from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th. Finally, Wells Fargo & Company increased their target price on Cloudflare from $300.00 to $380.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, seven have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $326.33.

Insider Activity

In other news, Director Carl Ledbetter sold 5,000 shares of the business's stock in a transaction that occurred on Tuesday, September 22nd. The stock was sold at an average price of $353.15, for a total transaction of $1,765,750.00. Following the completion of the transaction, the director directly owned 873,073 shares in the company, valued at approximately $308,325,729.95. The trade was a 0.57% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of the firm's stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $332.46, for a total value of $3,324,600.00. Following the transaction, the chief financial officer directly owned 107,902 shares in the company, valued at $35,873,098.92. This trade represents a 8.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 392,833 shares of company stock valued at $115,040,919 over the last quarter. 10.66% of the stock is owned by company insiders.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: BTIG raises price target and maintains a Buy rating. BTIG Research increased its price target for Cloudflare from $382 to $413, implying further upside from recent levels. The higher target reflects confidence in the company’s growth outlook. BTIG Research Issues Positive Forecast for Cloudflare Stock Price
• Positive Sentiment: Product momentum and network performance remain catalysts. Recent product announcements, including offerings aimed at supporting AI agents and scalable workloads, continued to attract investor attention. Cloudflare also reported that its network was the fastest provider across 74% of the top 1,000 networks, reinforcing its competitive positioning. Why Cloudflare Stock Is Trading Higher
• Positive Sentiment: Enterprise expansion could broaden revenue growth. Cloudflare’s partnership with Deutsche Telekom provides additional distribution channels in Europe and could support adoption of its security and connectivity products among enterprise customers. Can Cloudflare’s Deutsche Telekom Deal Drive Enterprise Growth?
• Positive Sentiment: Risk appetite and macroeconomic conditions favored technology stocks. A cooler-than-expected U.S. jobs report helped lift expectations for more accommodative monetary policy, supporting high-beta cloud and technology shares. Cloudflare also reached a fresh 52-week high amid strong recent momentum. Cloudflare Climbs as Risk Appetite Favors High-Beta Cloud Names
• Negative Sentiment: Valuation and profitability risks remain significant. Cloudflare’s substantial six-month rally has increased concerns that favorable expectations are already reflected in the stock. Analysts also point to margin pressure from AI workloads, a continuing net loss and questions about how much reported free cash flow remains after stock-based compensation and share issuance. NET Stock Surges in Six Months

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. 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 valued at $29,000 after acquiring an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new position in shares of Cloudflare during the 2nd quarter worth about $30,000. CX Institutional grew its stake in shares of Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after purchasing an additional 44 shares during the period. Cape Investment Advisory Inc. acquired a new stake in shares of Cloudflare in the 2nd quarter valued at $33,000. Finally, Ancora Advisors LLC acquired a new stake in shares of Cloudflare during the second quarter worth approximately $33,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Cloudflare Trading Up 0.6%

The stock has a market cap of $127.86 billion, a P/E ratio of -623.66, a price-to-earnings-growth ratio of 277.63 and a beta of 1.65. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The business's fifty day simple moving average is $310.01 and its 200 day simple moving average is $256.66.

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

Cloudflare Company Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.

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