Cloudflare (NYSE:NET) Reaches New 1-Year High - Should You Buy?

Key Points

• Cloudflare shares reached a new 52-week high, trading as high as $333.72 and gaining 8.9%; the company’s market capitalization is approximately $118 billion.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $320.19, although targets range from $250 to $375.
• Cloudflare exceeded quarterly expectations, reporting $0.29 in EPS versus $0.27 expected and 35.9% year-over-year revenue growth, but the stock has an extremely high valuation and insiders have sold roughly $186.2 million of shares over the past three months.

Shares of Cloudflare, Inc. (NYSE:NET - Get Free Report) reached a new 52-week high during trading on Monday . The stock traded as high as $333.72 and last traded at $332.8990, with a volume of 2688210 shares. The stock had previously closed at $306.53.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. KeyCorp lifted their price objective on shares of Cloudflare from $300.00 to $375.00 and gave the company an "overweight" rating in a report on Friday, August 7th. UBS Group upped 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. New Street Research reaffirmed a "market outperform" rating on shares of Cloudflare in a research report on Monday, June 15th. Morgan Stanley reaffirmed an "overweight" rating and set a $370.00 price target on shares of Cloudflare in a research note on Friday, August 7th. Finally, Cantor Fitzgerald reiterated a "neutral" rating and issued a $250.00 price target on shares of Cloudflare in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $320.19.

Cloudflare Trading Up 8.9%

The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The company's fifty day simple moving average is $285.92 and its 200-day simple moving average is $239.49. The company has a market capitalization of $118.02 billion, a P/E ratio of -574.77, a PEG ratio of 250.57 and a beta of 1.66.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate 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 business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same quarter in the previous year, the business posted $0.21 EPS. The company'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. Research analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling at Cloudflare

In related news, CAO Janel Riley sold 3,481 shares of the firm's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $305.26, for a total transaction of $1,062,610.06. Following the sale, the chief accounting officer owned 41,547 shares of the company's stock, valued at $12,682,637.22. This trade represents a 7.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 2,538 shares of Cloudflare stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $304.68, for a total value of $773,277.84. Following the completion of the transaction, the insider owned 112,082 shares in the company, valued at $34,149,143.76. This trade represents 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. In the last three months, insiders have sold 703,724 shares of company stock worth $186,167,272. 10.66% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NET. California State Teachers Retirement System boosted its stake in Cloudflare by 24,491.6% in the second quarter. California State Teachers Retirement System now owns 114,562,194 shares of the company's stock valued at $28,099,815,000 after acquiring an additional 114,096,335 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Cloudflare by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company's stock worth $1,184,044,000 after purchasing an additional 241,981 shares in the last quarter. Jennison Associates LLC grew 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 worth $906,758,000 after buying an additional 2,530,872 shares during the last quarter. First Trust Advisors LP grew its stake in Cloudflare by 1.6% during the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company's stock worth $792,377,000 after buying an additional 63,198 shares during the last quarter. Finally, Invesco Ltd. increased its position in Cloudflare by 1.3% during the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock valued at $850,792,000 after buying an additional 49,485 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Company Profile

Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.

The company's offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.

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