Key Points
- Cloudflare director Carl Ledbetter sold 5,000 shares for approximately $1.41 million at an average price of $281.98. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced his ownership by 0.56%.
- Cloudflare exceeded quarterly expectations, reporting adjusted EPS of $0.29 versus $0.27 expected and revenue of $696.06 million, up 35.9% year over year.
- Analyst sentiment remains generally positive, with a “Moderate Buy” consensus and an average price target of $267.38, though valuation and continued insider selling remain risks.
Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Carl Ledbetter sold 5,000 shares of the firm's stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $281.98, for a total transaction of $1,409,900.00. Following the transaction, the director owned 883,073 shares of the company's stock, valued at $249,008,924.54. This trade represents a 0.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Carl Ledbetter also recently made the following trade(s):
- On Tuesday, July 7th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The stock was sold at an average price of $268.11, for a total transaction of $1,340,550.00.
Cloudflare Stock Down 3.3%
Shares of NYSE NET opened at $283.33 on Friday. The firm's 50-day moving average is $255.83 and its two-hundred day moving average is $218.26. The company has a market capitalization of $100.15 billion, a PE ratio of -1,133.31, a price-to-earnings-growth ratio of 219.10 and a beta of 1.65. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $305.00. 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 quarterly earnings data on Wednesday, August 5th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business had revenue of $696.06 million during the quarter, compared to analysts' expectations of $664.66 million. During the same period last year, the company posted $0.21 EPS. The company's revenue was up 35.9% on a year-over-year basis. Equities analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.
Analysts Set New Price Targets
A number of research firms have recently weighed in on NET. The Goldman Sachs Group cut Cloudflare from a "buy" rating to a "sell" rating in a report on Wednesday, April 15th. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $250.00 price objective on shares of Cloudflare in a research note on Monday. Citizens Jmp lifted their price objective on Cloudflare from $270.00 to $330.00 and gave the stock a "market outperform" rating in a research report on Monday, July 20th. Stifel Nicolaus set a $260.00 target price on shares of Cloudflare in a report on Friday, May 8th. Finally, Morgan Stanley raised their price target on shares of Cloudflare from $305.00 to $322.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $267.38.
Read Our Latest Research Report on Cloudflare
Trending Headlines about Cloudflare
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cloudflare beat second-quarter expectations. The company reported adjusted EPS of $0.29 versus the $0.27 consensus and revenue of $696.06 million versus estimates of approximately $664.7 million. Revenue increased 35.9% year over year, reinforcing demand for Cloudflare’s connectivity, security and developer products. Cloudflare Q2 earnings report
- Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 EPS guidance increased to $1.25-$1.26, compared with consensus of $0.96, while revenue guidance was set at approximately $2.9 billion versus expectations of $2.8 billion. Third-quarter guidance also exceeded estimates, with EPS of $0.34 and revenue of $736-$737 million. Cloudflare raises annual outlook
- Positive Sentiment: AI demand is becoming a major growth driver. Cloudflare cited rising AI-agent traffic across its network and launched tools including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS. These offerings could expand its enterprise security, AI infrastructure and developer-platform markets. Cloudflare AEO Visibility Dashboard
- Neutral Sentiment: Analyst reaction is mixed. Jefferies maintained a Hold rating, while broader coverage remains generally favorable. The stock’s high beta and sharp recent rally may be contributing to profit-taking even after the earnings beat.
- Negative Sentiment: Insider selling may weigh on sentiment. CEO Matthew Prince sold more than $45 million of shares across multiple transactions, and director Carl Ledbetter sold 5,000 shares for about $1.4 million. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a signal about business prospects, but they can still pressure investor sentiment. SEC insider filing
- Negative Sentiment: Valuation remains a key risk. With Cloudflare valued at roughly $100 billion and still reporting a negative net margin, investors may demand continued acceleration in growth, profitability and cash flow. Any guidance or AI-demand disappointment could trigger further volatility.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently modified their holdings of NET. Empowered Funds LLC grew its stake in shares of Cloudflare by 34.2% during the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock valued at $750,000 after buying an additional 1,696 shares during the period. Sivia Capital Partners LLC purchased a new stake in Cloudflare during the second quarter valued at about $424,000. Cerity Partners LLC grew its position in Cloudflare by 30.1% during the second quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock valued at $5,391,000 after acquiring an additional 6,363 shares during the period. Sei Investments Co. increased its stake in Cloudflare by 40.1% during the second quarter. Sei Investments Co. now owns 329,036 shares of the company's stock worth $64,432,000 after acquiring an additional 94,112 shares during the last quarter. Finally, The Manufacturers Life Insurance Company increased its stake in Cloudflare by 14.6% during the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock worth $3,224,000 after acquiring an additional 2,093 shares during the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.
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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