Truist Financial Issues Positive Forecast for Cloudflare (NYSE:NET) Stock Price

Key Points

• Truist Financial raised Cloudflare’s price target from $300 to $350 and maintained a Buy rating, implying 9.58% upside from the prior close. Analyst sentiment is broadly positive, with a Moderate Buy consensus and an average target of $284.22.
• Cloudflare reported quarterly revenue of $696.1 million, up 35.9% year over year, and earnings of $0.29 per share, beating analyst estimates. Management also raised its full-year revenue forecast, citing growing demand for AI-related network and security services.
• Despite strong institutional ownership and favorable growth expectations, insider selling and the stock’s elevated valuation remain potential risks; analysts’ ratings are mixed and shares have shown significant volatility.

Cloudflare (NYSE:NET - Get Free Report) had its target price raised by investment analysts at Truist Financial from $300.00 to $350.00 in a report issued on Friday,Benzinga reports. The firm presently has a "buy" rating on the stock. Truist Financial's price objective suggests a potential upside of 9.58% from the stock's previous close.

NET has been the subject of several other reports. KeyCorp reaffirmed an "overweight" rating and set a $375.00 target price on shares of Cloudflare in a research note on Friday. Cantor Fitzgerald reiterated a "neutral" rating and issued a $250.00 target price on shares of Cloudflare in a research report on Monday. Deutsche Bank Aktiengesellschaft raised Cloudflare to a "buy" rating in a report on Tuesday, July 7th. Stifel Nicolaus set a $260.00 price target on shares of Cloudflare in a research report on Friday, May 8th. Finally, UBS Group reaffirmed a "neutral" rating on shares of Cloudflare in a research note on Friday. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $284.22.

Cloudflare Stock Up 12.3%

Shares of NET opened at $319.41 on Friday. The business's 50 day moving average is $255.83 and its 200 day moving average is $218.26. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. Cloudflare has a 12-month low of $158.83 and a 12-month high of $325.80. The company has a market capitalization of $112.90 billion, a PE ratio of -1,267.95, a price-to-earnings-growth ratio of 219.10 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.29 earnings per share 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 return on equity of 5.65% and a negative net margin of 3.72%.The firm's revenue for the quarter was up 35.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.21 EPS. Research analysts expect that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In related news, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $213.98, for a total value of $7,506,418.40. Following the sale, the insider directly owned 47,425 shares of the company's stock, valued at $10,148,001.50. This represents a 42.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total value of $13,057,795.98. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 749,532 shares of company stock worth $183,882,628. 10.66% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cloudflare

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in Cloudflare by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company's stock worth $6,389,167,000 after acquiring an additional 90,397 shares in the last quarter. Geode Capital Management LLC lifted 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 during the period. Jennison Associates LLC boosted its stake in shares of Cloudflare by 135.8% during the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after purchasing an additional 2,530,872 shares in the last quarter. First Trust Advisors LP increased its holdings in Cloudflare by 1.6% during the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company's stock valued at $792,377,000 after buying an additional 63,198 shares during the period. Finally, Invesco Ltd. increased its holdings in Cloudflare by 1.3% during the third 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 during the period. 82.68% of the stock is currently owned by institutional investors.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat second-quarter expectations. Revenue rose 35.9% year over year to $696.1 million, exceeding estimates of approximately $664.7 million. Adjusted earnings of $0.29 per share also topped the $0.27 consensus. Cloudflare Q2 results
• Positive Sentiment: Management raised its full-year forecast above analyst expectations. Cloudflare now expects 2026 revenue of roughly $2.864 billion to $2.870 billion, up from its prior $2.805 billion-$2.813 billion range. Third-quarter guidance of $736 million-$737 million in revenue and $0.34 EPS also exceeded consensus estimates. Cloudflare raises outlook
• Positive Sentiment: AI-agent traffic is supporting demand. Cloudflare said businesses increasingly rely on its network to route and secure AI applications. New offerings, including the AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS, could broaden its enterprise opportunity. Market update on Cloudflare
• Positive Sentiment: BTIG Research raised its price target. BTIG increased its target from $314 to $382 and reiterated a Buy rating, adding to favorable Wall Street commentary after the earnings release. BTIG price-target update
• Neutral Sentiment: Analyst sentiment remains mixed. The broader consensus is still favorable, but some firms maintain Hold or Sell ratings. Cloudflare’s high valuation and elevated volatility make the shares sensitive to changes in growth expectations.
• Negative Sentiment: Insider selling could pressure sentiment. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter reported sales totaling millions of dollars. The transactions were made under pre-arranged Rule 10b5-1 plans and therefore do not necessarily indicate deteriorating confidence, but they may encourage profit-taking. Cloudflare insider filing

About Cloudflare

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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