Key Points
- Cloudflare Director Carl Ledbetter sold 5,000 shares at an average price of $353.15, generating approximately $1.77 million. The sale, conducted under a pre-arranged Rule 10b5-1 plan, reduced his ownership by 0.57% to 873,073 shares.
- Cloudflare reported strong operating momentum, with quarterly revenue up 35.9% year over year to $696.1 million and EPS of $0.29, exceeding analyst expectations. Institutional investors own approximately 82.68% of the company.
- Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $321.85, although the stock’s elevated valuation and trading near its 52-week high present downside risks.
Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Carl Ledbetter sold 5,000 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $353.15, for a total value of $1,765,750.00. Following the sale, the director owned 873,073 shares in the company, valued at $308,325,729.95. This trade represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Carl Ledbetter also recently made the following trade(s):
- On Monday, September 14th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The stock was sold at an average price of $312.22, for a total value of $1,561,100.00.
- On Thursday, August 6th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The stock was sold at an average price of $281.98, for a total value of $1,409,900.00.
- On Tuesday, July 7th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The shares were sold at an average price of $268.11, for a total value of $1,340,550.00.
Cloudflare Stock Up 0.1%
Cloudflare stock opened at $353.21 on Thursday. The stock has a market capitalization of $124.85 billion, a PE ratio of -608.98, a price-to-earnings-growth ratio of 280.75 and a beta of 1.66. Cloudflare, Inc. has a 12 month low of $158.83 and a 12 month high of $364.23. The business has a 50 day simple moving average of $296.73 and a 200-day simple moving average of $248.51. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.
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 analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The firm had revenue of $696.06 million for the quarter, compared to analyst estimates of $664.66 million. During the same quarter last year, the firm posted $0.21 EPS. The business's revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. On average, analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.
Institutional Investors Weigh In On Cloudflare
Large investors have recently modified their holdings of the business. Geode Capital Management LLC lifted its stake in Cloudflare by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company's stock worth $1,184,044,000 after purchasing an additional 241,981 shares in the last quarter. Jennison Associates LLC grew its position in shares of Cloudflare by 135.8% in 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 in the last quarter. Norges Bank acquired a new stake in shares of Cloudflare in the fourth quarter valued at approximately $718,316,000. Legal & General Group Plc lifted its position in Cloudflare by 4.9% during the fourth quarter. Legal & General Group Plc now owns 2,824,772 shares of the company's stock worth $556,904,000 after buying an additional 131,127 shares in the last quarter. Finally, Amundi lifted its position in Cloudflare by 2.0% during the first quarter. Amundi now owns 1,707,256 shares of the company's stock worth $352,275,000 after buying an additional 32,804 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.
Wall Street Analyst Weigh In
Several brokerages have recently issued reports on NET. Morgan Stanley reiterated an "overweight" rating and issued a $370.00 target price on shares of Cloudflare in a research report on Friday, August 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Cloudflare in a research report on Friday, July 17th. Needham & Company LLC raised their price target on shares of Cloudflare from $280.00 to $380.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Piper Sandler lifted their price objective on Cloudflare from $250.00 to $333.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Finally, Wall Street Zen lowered Cloudflare from a "buy" rating to a "hold" rating in a research note on Sunday, September 6th. One investment 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 given a Sell rating to the stock. Based on data from MarketBeat.com, Cloudflare presently has an average rating of "Moderate Buy" and an average price target of $321.85.
View Our Latest Analysis on NET
Cloudflare News Roundup
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cybersecurity stocks rallied after warnings about unpredictable AI behavior increased demand expectations for AI security tools. Cloudflare is positioned as an edge-security and internet-infrastructure provider, giving it potential exposure to this broader investment theme. 7 Cybersecurity Stocks Riding the AI Security Boom
- Positive Sentiment: Options traders purchased a large volume of Cloudflare call options, signaling increased speculative interest in further upside. Options activity can support near-term momentum, although it does not change the company’s fundamentals. Traders Purchase Large Volume of Call Options on Cloudflare
- Positive Sentiment: Cloudflare’s latest quarterly results provide a fundamental backdrop for bullish sentiment: revenue grew 35.9% year over year to $696.1 million and adjusted earnings exceeded consensus estimates. Management’s fiscal 2026 guidance also points to continued growth.
- Neutral Sentiment: One recent comparison article highlights investor interest in Cloudflare, while another examines the potential impact if its growth rate cools. These reports reinforce that the stock’s outlook depends heavily on sustaining strong expansion. What Happens to Cloudflare Stock If Its Growth Cools?
- Negative Sentiment: Director Carl Ledbetter sold 5,000 shares for approximately $1.8 million, reducing his direct position by 0.57%. The sale was made under a pre-arranged Rule 10b5-1 plan, which makes it less concerning than discretionary selling, but it adds to recent insider-selling activity. CFO Thomas Seifert previously sold 10,000 shares for about $3.3 million under a similar plan.
- Negative Sentiment: Valuation remains a major vulnerability. Cloudflare trades near its 52-week high at a very high growth multiple, leaving limited room for execution disappointments, slower revenue growth or weaker software-sector sentiment.
Cloudflare Company Profile
(
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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