Cloudflare (NYSE:NET) Stock Price Down 5.1% - What's Next?

Key Points

• Cloudflare shares fell 5.1% to approximately $316.97 in low-volume trading, while its consensus analyst rating remains “Moderate Buy” with an average price target of $321.85.
• The company exceeded quarterly expectations, reporting $0.29 in adjusted EPS versus $0.27 expected and $696.06 million in revenue, up 35.9% year over year. Cloudflare also issued fiscal 2026 EPS guidance of $1.25–$1.26.
• Insiders sold 647,442 shares worth approximately $173.8 million over the past 90 days, though institutional investors continue to hold a substantial 82.68% of the stock.

Cloudflare, Inc. (NYSE:NET - Get Free Report) shares traded down 5.1% during trading on Friday . The stock traded as low as $319.59 and last traded at $316.9730. Approximately 391,074 shares were traded during trading, a decline of 91% from the average session volume of 4,167,579 shares. The stock had previously closed at $333.94.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Truist Financial raised their price objective on Cloudflare from $300.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, August 7th. Wells Fargo & Company increased their target price on shares of Cloudflare from $300.00 to $380.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Sanford C. Bernstein boosted their price target on shares of Cloudflare from $164.00 to $181.00 and gave the stock a "market perform" rating in a research report on Thursday. Zacks Research cut shares of Cloudflare from a "strong-buy" rating to a "hold" rating in a research report on Friday, August 14th. Finally, Mizuho boosted their target price on shares of Cloudflare from $260.00 to $310.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $321.85.

Cloudflare Trading Down 4.2%

The business has a 50 day moving average of $290.95 and a two-hundred day moving average of $243.97. 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 firm has a market capitalization of $113.12 billion, a price-to-earnings ratio of -551.81, a P/E/G ratio of 258.21 and a beta of 1.66.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The firm had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same period in the previous year, the company posted $0.21 EPS. The company's revenue for the quarter was up 35.9% on a year-over-year basis. 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 predict that Cloudflare, Inc. will post 0.03 EPS for the current year.

Insider Transactions at Cloudflare

In other news, insider Alissa Michelle Starzak sold 2,538 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $304.68, for a total transaction of $773,277.84. Following the transaction, the insider owned 112,082 shares of the company's stock, valued at $34,149,143.76. This represents a 2.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 10,000 shares of the stock in a transaction on Monday, August 17th. The stock was sold at an average price of $307.32, for a total value of $3,073,200.00. Following the transaction, the chief financial officer owned 110,846 shares of the company's stock, valued at $34,065,192.72. The trade was a 8.27% 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. Over the last 90 days, insiders sold 647,442 shares of company stock valued at $173,812,433. 10.66% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cloudflare

Large investors have recently modified their holdings of the business. Cornerstone Financial Management LLC raised its position in shares of Cloudflare by 65.3% in 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 during the last quarter. C M Bidwell & Associates Ltd. bought a new stake in Cloudflare during the 2nd quarter valued at about $30,000. CX Institutional raised its holdings in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after buying an additional 44 shares during the last quarter. Cape Investment Advisory Inc. bought a new position in shares of Cloudflare in the second quarter worth approximately $33,000. Finally, Ancora Advisors LLC purchased a new stake in shares of Cloudflare during the second quarter valued at approximately $33,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

About Cloudflare

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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