Cloudflare (NYSE:NET) Stock Crosses Below 50-Day Moving Average - Time to Sell?

Cloudflare, Inc. (NYSE:NET - Get Free Report) shares crossed below its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $320.38 and traded as low as $317.55. Cloudflare shares last traded at $318.1560, with a volume of 2,194,519 shares traded.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a "buy" rating in a research report on Tuesday, July 7th. Zacks Research lowered shares of Cloudflare from a "hold" rating to a "strong sell" rating in a report on Wednesday, October 14th. Jefferies Financial Group set a $350.00 price objective on shares of Cloudflare in a research note on Friday, August 7th. Guggenheim upped their price objective on shares of Cloudflare from $140.00 to $160.00 and gave the company a "sell" rating in a research note on Friday, August 7th. Finally, Benchmark lowered shares of Cloudflare to an "underperform" rating in a report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, Cloudflare presently has an average rating of "Moderate Buy" and an average price target of $331.33.

Cloudflare Price Performance

The company has a market capitalization of $112.46 billion, a PE ratio of -548.54, a PEG ratio of 259.07 and a beta of 1.65. The firm has a fifty day moving average of $320.38 and a two-hundred day moving average of $246.69. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results 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 for the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. Cloudflare's revenue for the quarter was up 35.9% compared to the same quarter last year. During the same period last year, the company 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. Research analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Insider Activity

In related news, CFO Thomas J. Seifert sold 12,500 shares of Cloudflare stock in a transaction on Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the transaction, the chief financial officer directly owned 104,958 shares of the company's stock, valued at $31,444,367.22. The trade was a 10.64% decrease in their ownership of the stock. The sale was disclosed in a filing 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, Director Carl Ledbetter sold 5,000 shares of Cloudflare stock in a transaction on Monday, October 19th. The stock was sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the completion of the transaction, the director directly owned 868,073 shares in the company, valued at approximately $264,241,421.20. The trade was a 0.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 476,339 shares of company stock valued at $143,439,267. 10.66% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cloudflare

Institutional investors have recently added to or reduced their stakes in the company. Global Assets Advisory LLC bought a new position in shares of Cloudflare during the third quarter valued at $211,000. MGO One Seven LLC raised its position in shares of Cloudflare by 4.5% in the 3rd quarter. MGO One Seven LLC now owns 3,813 shares of the company's stock worth $1,324,000 after purchasing an additional 165 shares during the last quarter. Americana Partners LLC raised its position in shares of Cloudflare by 51.7% in the 3rd quarter. Americana Partners LLC now owns 2,033 shares of the company's stock worth $706,000 after purchasing an additional 693 shares during the last quarter. Left Brain Wealth Management LLC raised its position in shares of Cloudflare by 277.9% in the 3rd quarter. Left Brain Wealth Management LLC now owns 17,929 shares of the company's stock worth $6,226,000 after purchasing an additional 13,184 shares during the last quarter. Finally, State of Wyoming bought a new position in Cloudflare in the 3rd quarter worth about $138,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Company Profile

Cloudflare, Inc NYSE: NET provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company's offerings include content delivery and authoritative 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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