Key Points
- Cloudflare insider Alissa Michelle Starzak sold 3,333 shares for approximately $1.03 million at an average price of $310.15 under a pre-arranged Rule 10b5-1 plan, reducing her direct ownership by 2.83%.
- Cloudflare reported quarterly EPS of $0.29, beating estimates by $0.02, while revenue rose 35.9% year over year to $696.06 million. The company issued fiscal 2026 EPS guidance of $1.25–$1.26.
- Analysts maintain a “Moderate Buy” consensus with an average price target of $320.19, but valuation remains a concern because of Cloudflare’s substantial earnings multiples and continuing net losses.
Cloudflare, Inc. (NYSE:NET - Get Free Report) CAO Janel Riley sold 1,667 shares of Cloudflare stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $310.36, for a total transaction of $517,370.12. Following the transaction, the chief accounting officer directly owned 45,028 shares in the company, valued at approximately $13,974,890.08. This represents a 3.57% 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.
Janel Riley also recently made the following trade(s):
- On Tuesday, August 18th, Janel Riley sold 3,481 shares of Cloudflare stock. The shares were sold at an average price of $305.26, for a total value of $1,062,610.06.
Cloudflare Stock Down 3.1%
NET stock opened at $292.03 on Thursday. The stock's fifty day simple moving average is $265.92 and its two-hundred day simple moving average is $226.28. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $332.22. The stock has a market cap of $103.22 billion, a P/E ratio of -503.50, a P/E/G ratio of 180.05 and a beta of 1.65.
Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.02. The firm had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The business's revenue was up 35.9% compared to the same quarter last year. During the same period last year, the firm posted $0.21 EPS. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current year.
Analyst Ratings Changes
NET has been the topic of several research reports. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $389.00 price objective on shares of Cloudflare in a research report on Friday, August 7th. Raymond James Financial initiated coverage on shares of Cloudflare in a research report on Tuesday, July 7th. They set a "strong-buy" rating for the company. Weiss Ratings restated a "sell (d-)" rating on shares of Cloudflare in a research note on Friday, July 17th. Sanford C. Bernstein reaffirmed a "market perform" rating and issued a $136.00 price target on shares of Cloudflare in a report on Wednesday, June 10th. Finally, Truist Financial upped their price objective on Cloudflare from $300.00 to $350.00 and gave the company a "buy" rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, Cloudflare presently has an average rating of "Moderate Buy" and an average price target of $320.19.
Read Our Latest Stock Report on NET
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently bought and sold shares of the business. Empowered Funds LLC grew its stake in Cloudflare by 34.2% in 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 in the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Cloudflare during the second quarter worth $424,000. Cerity Partners LLC lifted its position in shares of Cloudflare by 30.1% during the second quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock worth $5,391,000 after acquiring an additional 6,363 shares in the last quarter. Sei Investments Co. boosted its holdings in shares of Cloudflare by 40.1% in 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 period. Finally, The Manufacturers Life Insurance Company boosted its holdings in shares of Cloudflare by 14.6% in 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 period. 82.68% of the stock is owned by institutional investors.
Key Stories Impacting Cloudflare
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cloudflare’s latest quarter exceeded expectations, with earnings per share of $0.29 versus the $0.27 consensus and revenue of $696.1 million versus estimates of $664.7 million. Revenue increased 35.9% year over year, while management provided 2026 guidance. The results reinforce the company’s AI, edge-computing and cybersecurity growth story. Cloudflare’s Beat-and-Raise Quarter Puts Its AI Edge Story in Focus
- Positive Sentiment: Analyst sentiment remains favorable. Goldman Sachs maintained a Buy rating with a $389 price target, while TD Cowen raised its target to $355. Institutional ownership is also high at 82.68%, with several investment firms increasing their positions during the second quarter. Cloudflare Stock May Look Stretched as AI Growth Lifts Outlook
- Neutral Sentiment: Multiple insiders reported stock sales, including CFO Thomas J. Seifert’s sale of 10,000 shares, Chief Accounting Officer Janel Riley’s combined sale of 5,148 shares, and Alissa Michelle Starzak’s combined sale of 5,871 shares. Each transaction was executed under a pre-arranged Rule 10b5-1 plan, limiting its value as a direct signal of weakening business prospects. Cloudflare CFO SEC Filing
- Negative Sentiment: Valuation is weighing on the stock. Cloudflare remains unprofitable, with a negative net margin and a reported P/E ratio near -503, while its rapid multiyear rally has pushed shares close to their 52-week high. Investors appear concerned that substantial AI-related growth is already reflected in the price, leaving the stock vulnerable to profit-taking and pullbacks. Cloudflare Shares Fall as GF Value Says Stock Is Overvalued
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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