Key Points
- Cloudflare insider sale: Insider Alissa Michelle Starzak sold 16,243 shares on May 28 for about $3.51 million at an average price of $216.15. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and her stake fell by 12.06%.
- Strong recent quarter: Cloudflare reported quarterly EPS of $0.25, beating analyst estimates of $0.23, while revenue of $639.76 million also topped expectations. Revenue rose 33.5% year over year, though the company still posted negative net margin and return on equity.
- Wall Street remains constructive: Analysts currently rate the stock a Moderate Buy with an average price target of $236.68. Institutional ownership is high at 82.68%, with several large funds increasing or adding positions recently.
Cloudflare, Inc. (NYSE:NET - Get Free Report) insider Alissa Michelle Starzak sold 16,243 shares of the firm's stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $216.15, for a total transaction of $3,510,924.45. Following the completion of the sale, the insider owned 118,395 shares in the company, valued at $25,591,079.25. This represents a 12.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Cloudflare Stock Performance
NYSE NET opened at $269.87 on Tuesday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The firm has a market capitalization of $95.39 billion, a price-to-earnings ratio of -1,079.48 and a beta of 1.67. The company's fifty day moving average is $209.52 and its two-hundred day moving average is $198.92. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $271.20.
Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm's revenue for the quarter was up 33.5% compared to the same quarter last year. During the same period last year, the firm earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.
Hedge Funds Weigh In On Cloudflare
A number of large investors have recently modified their holdings of NET. Norges Bank acquired a new position in shares of Cloudflare during the fourth quarter worth approximately $718,316,000. Jennison Associates LLC lifted its position 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 worth $906,758,000 after purchasing an additional 2,530,872 shares in the last quarter. Corient Private Wealth LLC lifted its position in shares of Cloudflare by 4,042.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after purchasing an additional 1,365,598 shares in the last quarter. Groupama Asset Managment lifted its position in shares of Cloudflare by 82.6% during the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after purchasing an additional 950,000 shares in the last quarter. Finally, Vanguard Group Inc. lifted its position in shares of Cloudflare by 2.6% during the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after purchasing an additional 821,684 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades
A number of research firms have recently commented on NET. Barclays reaffirmed an "overweight" rating and set a $250.00 price objective on shares of Cloudflare in a report on Monday. Jefferies Financial Group started coverage on Cloudflare in a research note on Wednesday, April 15th. They set a "buy" rating for the company. Scotiabank dropped their price objective on Cloudflare from $255.00 to $225.00 and set a "sector perform" rating for the company in a research note on Wednesday, February 11th. Zacks Research upgraded Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Finally, Guggenheim increased their price objective on Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a research note on Wednesday, February 11th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Cloudflare currently has a consensus rating of "Moderate Buy" and an average price target of $236.68.
Check Out Our Latest Analysis on NET
About Cloudflare
(
Get Free Report)
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.
Further Reading
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