Key Points
- Cloudflare Director Mark Hawkins sold 133 shares for approximately $36,939 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 1.24% while retaining 10,632 shares.
- Cloudflare reported quarterly revenue of $639.75 million, up 33.5% year over year, and EPS of $0.25, exceeding analyst expectations.
- Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating, though elevated valuation and high expectations remain key risks.
Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Mark Hawkins sold 133 shares of the stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $277.74, for a total transaction of $36,939.42. Following the completion of the sale, the director owned 10,632 shares of the company's stock, valued at approximately $2,952,931.68. This represents a 1.24% decrease in their position. The sale was disclosed in a legal 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.
Cloudflare Stock Performance
Shares of NET opened at $301.33 on Wednesday. The company has a market cap of $106.51 billion, a PE ratio of -1,205.32, a price-to-earnings-growth ratio of 211.46 and a beta of 1.65. The firm has a 50-day moving average of $253.08 and a 200-day moving average of $216.81. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $303.76. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96.
Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The company had revenue of $639.75 million for the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. Cloudflare's quarterly revenue was up 33.5% compared to the same quarter last year. During the same period in the prior 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. As a group, equities analysts forecast that Cloudflare, Inc. will post 0.03 earnings per share for the current year.
Institutional Trading of Cloudflare
Several institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Cloudflare by 0.3% in the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company's stock valued at $6,389,167,000 after buying an additional 90,397 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Cloudflare by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company's stock worth $1,184,044,000 after buying an additional 241,981 shares in the last quarter. Jennison Associates LLC increased its position in 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 acquiring an additional 2,530,872 shares during the period. First Trust Advisors LP boosted its holdings in Cloudflare by 1.6% in the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company's stock valued at $792,377,000 after purchasing an additional 63,198 shares during the period. Finally, Invesco Ltd. boosted its holdings in Cloudflare by 1.3% in the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock valued at $850,792,000 after purchasing an additional 49,485 shares during the period. 82.68% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In
Several analysts have issued reports on NET shares. Citizens Jmp upped their price objective on Cloudflare from $270.00 to $330.00 and gave the company a "market outperform" rating in a research note on Monday, July 20th. Oppenheimer lifted their target price on Cloudflare from $300.00 to $330.00 and gave the stock an "outperform" rating in a research note on Thursday, July 23rd. Susquehanna boosted their target price on Cloudflare from $190.00 to $200.00 and gave the stock a "neutral" rating in a report on Monday, May 11th. Raymond James Financial began coverage on Cloudflare in a research note on Tuesday, July 7th. They issued a "strong-buy" rating on the stock. Finally, New Street Research reaffirmed a "market outperform" rating on shares of Cloudflare in a report on Monday, June 15th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $265.27.
Read Our Latest Stock Analysis on Cloudflare
Cloudflare News Summary
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Jefferies expects stronger growth and potential guidance increases. Analysts anticipate second-quarter revenue acceleration and a possible full-year outlook raise. Cloudflare’s midpoint revenue guidance of $664.5 million implies approximately 30% year-over-year growth, while investors are looking for a path toward mid-30% growth by the end of 2026. Cloudflare poised for second quarter revenue acceleration, says Jefferies
- Positive Sentiment: AI-related product development supports the growth narrative. Cloudflare’s effort to give AI agents identity and wallet capabilities could strengthen its position in emerging AI infrastructure and security markets. Cloudflare Gives AI Agents an Identity and a Wallet
- Neutral Sentiment: Cloudflare is approaching a significant earnings catalyst. Pre-earnings coverage is focused on AI, Zero Trust, developer-platform demand, revenue growth and margins. The company previously reported quarterly revenue of $639.76 million, up 33.5% year over year, and exceeded the consensus EPS estimate. Cloudflare to Post Q2 Earnings: What's in Store for the Stock?
- Neutral Sentiment: Director Mark J. Hawkins sold a small portion of his holdings. Hawkins sold 133 shares for approximately $36,939, reducing his position by 1.24%. Because the transaction occurred under a pre-arranged Rule 10b5-1 plan and he retained 10,632 shares, the sale provides limited evidence of a change in business outlook. SEC insider filing
- Negative Sentiment: Valuation remains the principal risk. After a substantial multiyear rally, Cloudflare trades at demanding revenue and earnings multiples. Analysts warn that even a results beat may not be enough if growth, profitability or cash-flow expansion fails to exceed elevated expectations. Three Things I Love About Cloudflare And Why I'm Stuck At Hold Anyway
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.
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