Cloudflare (NYSE:NET) Trading Down 5.8% – Here’s Why

Shares of Cloudflare, Inc. (NYSE:NET) dropped 5.8% during mid-day trading on Thursday . The company traded as low as $190.40 and last traded at $191.0290. Approximately 522,654 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 1,742,707 shares. The stock had previously closed at $202.81.

Wall Street Analysts Forecast Growth

NET has been the subject of a number of analyst reports. Argus boosted their price target on Cloudflare from $238.00 to $265.00 and gave the stock a “buy” rating in a report on Monday, November 10th. Cantor Fitzgerald boosted their target price on shares of Cloudflare from $199.00 to $224.00 and gave the company a “neutral” rating in a research note on Friday, October 31st. Citigroup raised their price target on shares of Cloudflare from $255.00 to $318.00 and gave the stock a “buy” rating in a research note on Monday, November 3rd. DZ Bank raised shares of Cloudflare from a “sell” rating to a “hold” rating and set a $237.00 price objective for the company in a research report on Wednesday, November 5th. Finally, JMP Securities set a $270.00 price objective on shares of Cloudflare in a research note on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Cloudflare presently has an average rating of “Moderate Buy” and an average price target of $233.70.

Cloudflare Price Performance

The stock has a market cap of $66.01 billion, a PE ratio of -628.82, a price-to-earnings-growth ratio of 130.23 and a beta of 1.96. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.46. The company’s fifty day moving average is $207.03 and its 200 day moving average is $206.57.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, October 30th. The company reported $0.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.04. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. The company had revenue of $562.03 million during the quarter, compared to analyst estimates of $544.65 million. During the same quarter in the prior year, the business earned $0.20 earnings per share. The business’s quarterly revenue was up 30.7% compared to the same quarter last year. Cloudflare has set its Q4 2025 guidance at 0.270-0.270 EPS and its FY 2025 guidance at 0.910-0.910 EPS. As a group, sell-side analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Buying and Selling at Cloudflare

In other news, insider Michelle Zatlyn sold 35,099 shares of the company’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $199.26, for a total value of $6,993,826.74. Following the completion of the sale, the insider owned 24,555 shares of the company’s stock, valued at $4,892,829.30. This represents a 58.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Thomas J. Seifert sold 41,555 shares of the stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $194.18, for a total transaction of $8,069,149.90. Following the completion of the sale, the chief financial officer directly owned 137,486 shares of the company’s stock, valued at $26,697,031.48. This trade represents a 23.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 585,451 shares of company stock valued at $119,098,680 over the last three months. 10.89% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cloudflare

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Cloudflare by 2.6% during the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company’s stock worth $6,934,958,000 after acquiring an additional 821,684 shares during the last quarter. Geode Capital Management LLC grew its stake in Cloudflare by 5.1% during the 2nd quarter. Geode Capital Management LLC now owns 5,536,679 shares of the company’s stock valued at $1,081,533,000 after purchasing an additional 270,227 shares in the last quarter. Invesco Ltd. increased its holdings in Cloudflare by 1.3% during the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after purchasing an additional 49,485 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Cloudflare by 33.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company’s stock valued at $352,610,000 after purchasing an additional 786,063 shares in the last quarter. Finally, Norges Bank purchased a new position in shares of Cloudflare during the 2nd quarter valued at approximately $541,462,000. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Company Profile

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.