Key Points
- Cloudflare CFO Thomas Seifert sold 10,000 shares for about $2.32 million in a pre-arranged Rule 10b5-1 transaction, reducing his direct stake by 7.89%. The filing comes alongside other insider sales, which may weigh on sentiment.
- Cloudflare shares were down 1.3% and opened at $228.07, after trading between a 52-week low of $158.83 and high of $276.82. The company now has a market cap of about $80.62 billion.
- Despite the insider selling, analysts remain generally constructive: Cloudflare has a Moderate Buy consensus rating with an average price target of $241.35. Recent earnings also topped expectations, with quarterly revenue up 33.5% year over year.
Cloudflare, Inc. (NYSE:NET - Get Free Report) CFO Thomas Seifert sold 10,000 shares of Cloudflare stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $232.39, for a total value of $2,323,900.00. Following the transaction, the chief financial officer directly owned 116,733 shares of the company's stock, valued at $27,127,581.87. The trade was a 7.89% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Cloudflare Stock Down 1.3%
NET stock opened at $228.07 on Thursday. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The firm has a market capitalization of $80.62 billion, a PE ratio of -912.28, a PEG ratio of 411.56 and a beta of 1.70. Cloudflare, Inc. has a twelve month low of $158.83 and a twelve month high of $276.82. The stock has a 50-day simple moving average of $217.30 and a two-hundred day simple moving average of $202.45.
Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The business had revenue of $639.76 million during the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company's quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous 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. On average, equities analysts predict that Cloudflare, Inc. will post 0.01 EPS for the current fiscal year.
Analysts Set New Price Targets
A number of analysts have recently issued reports on NET shares. Barclays reiterated an "overweight" rating and set a $250.00 price target on shares of Cloudflare in a research report on Monday, June 1st. New Street Research reiterated a "market outperform" rating on shares of Cloudflare in a research report on Monday. Guggenheim reiterated a "sell" rating and issued a $140.00 target price on shares of Cloudflare in a research report on Wednesday, June 10th. Susquehanna upped their target price on Cloudflare from $190.00 to $200.00 and gave the stock a "neutral" rating in a research note on Monday, May 11th. Finally, Zacks Research raised Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Twenty-one analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $241.35.
Read Our Latest Stock Report on NET
Institutional Trading of Cloudflare
A number of institutional investors have recently made changes to their positions in NET. Norges Bank purchased a new stake in shares of Cloudflare during the fourth quarter valued at approximately $718,316,000. 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 during the period. Corient Private Wealth LLC boosted its stake 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 valued at $275,887,000 after purchasing an additional 1,365,598 shares during the period. Groupama Asset Managment boosted its stake 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 valued at $450,639,000 after purchasing an additional 950,000 shares during the period. Finally, Vanguard Group Inc. boosted its stake 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 valued at $6,934,958,000 after purchasing an additional 821,684 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.
Key Cloudflare News
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cloudflare announced a new Cloudflare One Design Partner Designation to help select global partners accelerate secure AI and SASE adoption, reinforcing demand for its enterprise security platform and supporting its long-term growth narrative.
- Positive Sentiment: Analyst and investor interest remains constructive, with Cloudflare highlighted as one of the more watched generative AI software names and previously supported by bullish analyst ratings and price targets.
- Neutral Sentiment: A third-party announcement about Spur’s no-code Cloudflare integration added ecosystem visibility, but it does not appear to materially change Cloudflare’s fundamentals.
- Neutral Sentiment: JLens urged shareholders to withhold votes on two directors ahead of the June 30 annual meeting, creating a governance headline that could keep some investors cautious.
- Negative Sentiment: Cloudflare CFO Thomas J. Seifert sold 10,000 shares under a pre-arranged trading plan, and Director John Graham-Cumming also sold shares, which may pressure sentiment even though the sales were routine and relatively small versus their holdings.
- Negative Sentiment: Shares have also been weaker than the broader market in the latest sessions, suggesting some profit-taking after a strong run and leaving the stock sensitive to any negative headlines.
Cloudflare Company Profile
(
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.
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