Key Points
- Cloudflare CFO Thomas Seifert sold 10,000 shares at an average price of $332.46, worth approximately $3.3 million, reducing his direct holdings by 8.48%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan.
- Cloudflare reported quarterly revenue of $696.06 million, up 35.9% year over year, and earnings of $0.29 per share, exceeding analyst expectations.
- The stock has surged roughly 460% over three years, prompting valuation concerns despite a consensus “Moderate Buy” rating and an average analyst price target of $321.85.
Cloudflare, Inc. (NYSE:NET - Get Free Report) CFO Thomas Seifert sold 10,000 shares of the firm's stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $332.46, for a total value of $3,324,600.00. Following the completion of the sale, the chief financial officer directly owned 107,902 shares of the company's stock, valued at approximately $35,873,098.92. The trade was a 8.48% 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 hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Cloudflare Trading Up 8.7%
Shares of Cloudflare stock opened at $351.82 on Tuesday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The business has a fifty day simple moving average of $293.68 and a two-hundred day simple moving average of $246.19. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $352.45. The company has a market capitalization of $124.36 billion, a price-to-earnings ratio of -606.59, a P/E/G ratio of 257.37 and a beta of 1.66.
Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02. The firm had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The company's quarterly revenue was up 35.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Research analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current year.
Key Headlines Impacting Cloudflare
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cloudflare introduced controls that allow customers to manage or block AI crawlers accessing their websites. The feature could strengthen Cloudflare’s position in the rapidly developing AI-infrastructure market and address concerns about content usage and bandwidth costs. Cloudflare Adds AI Crawling Controls as Stock Valuation Draws Focus
- Positive Sentiment: Wall Street’s average brokerage recommendation remains equivalent to a Buy, supporting the bullish narrative around Cloudflare’s growth prospects. A separate report said the consensus price target increased 11.7%, although price targets are not guarantees of future returns. Is It Worth Investing in Cloudflare Based on Wall Street’s Bullish Views? Cloudflare Consensus Price Target Increased
- Positive Sentiment: Investors purchased 19,837 Cloudflare call options, about 13% above average daily call volume. The activity suggests increased speculative or hedging interest in further upside, though options volume alone does not establish a fundamental improvement.
- Neutral Sentiment: Cloudflare rose alongside Fastly and Datadog during a broader move into edge security and AI-traffic infrastructure. The report indicated Cloudflare had no company-specific announcement driving the sector-wide strength. Fastly Soars on AI Firewall Launch
- Negative Sentiment: Cloudflare’s valuation is drawing scrutiny after an approximately 460% three-year rally. Forward enterprise value-to-revenue of roughly 35 times leaves little room for execution disappointments and makes continued strong revenue growth essential. Cloudflare Stock Looks Rich After Its Huge Three-Year Run
- Negative Sentiment: CFO Thomas Seifert sold 10,000 shares for approximately $3.3 million, reducing his holdings by 8.48%. Because the transaction was executed under a pre-arranged Rule 10b5-1 plan, it may be less concerning than discretionary selling, but it adds to investor focus on insider transactions.
Analysts Set New Price Targets
Several research analysts have weighed in on the stock. Scotiabank increased their price target on shares of Cloudflare from $300.00 to $390.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Wall Street Zen cut Cloudflare from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. Morgan Stanley reaffirmed an "overweight" rating and issued a $370.00 target price on shares of Cloudflare in a research report on Friday, August 7th. DZ Bank lowered Cloudflare from a "strong-buy" rating to a "strong sell" rating in a research note on Friday, August 7th. Finally, Oppenheimer lifted their price target on Cloudflare from $330.00 to $380.00 and gave the stock an "outperform" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, Cloudflare presently has a consensus rating of "Moderate Buy" and an average price target of $321.85.
Check Out Our Latest Stock Analysis on Cloudflare
Institutional Trading of Cloudflare
Several hedge funds and other institutional investors have recently bought and sold shares of the business. Cornerstone Financial Management LLC boosted its holdings in Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock valued at $29,000 after purchasing an additional 47 shares during the period. C M Bidwell & Associates Ltd. bought a new position in shares of Cloudflare during the second quarter worth approximately $30,000. CX Institutional increased its holdings in shares of Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after purchasing an additional 44 shares during the period. Cape Investment Advisory Inc. acquired a new stake in shares of Cloudflare in the second quarter valued at approximately $33,000. Finally, Ancora Advisors LLC acquired a new stake in shares of Cloudflare in the second quarter valued at approximately $33,000. Institutional investors and hedge funds own 82.68% of the company's stock.
About Cloudflare
(
Get Free Report)
Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.
The company's offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.
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