Cloudflare (NYSE:NET) Sets New 1-Year High – Time to Buy?

Cloudflare, Inc. (NYSE:NET)’s share price reached a new 52-week high during trading on Thursday . The stock traded as high as $278.88 and last traded at $273.54, with a volume of 417292 shares trading hands. The stock had previously closed at $273.40.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Scotiabank upgraded Cloudflare to Sector Outperform and raised its target to $300, arguing that AI traffic, edge computing, and zero-trust security can support stronger growth ahead. Scotiabank Sees a New Growth Story for Cloudflare
• Positive Sentiment: Cloudflare’s new research pilot with OpenAI adds to the company’s AI infrastructure story and suggests additional opportunities tied to web indexing and AI search. Cloudflare, OpenAI team up to launch research pilot for AI search indexing
• Neutral Sentiment: Director Carl Ledbetter sold 5,000 shares, but the trade was made under a pre-arranged Rule 10b5-1 plan, so it is less likely to be interpreted as a negative fundamental signal. Cloudflare Director Carl Ledbetter Sells 5,000 Shares
• Neutral Sentiment: Other recent insider sales, including by CEO Matthew Prince and director John Graham-Cumming, were also disclosed under pre-arranged trading plans and appear more routine than alarming. John Graham-Cumming Sells 2,520 Shares of Cloudflare Stock

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the company. Mizuho upped their price objective on Cloudflare from $235.00 to $260.00 and gave the company an “outperform” rating in a research note on Wednesday, June 10th. Needham & Company LLC lifted their target price on shares of Cloudflare from $250.00 to $280.00 and gave the stock a “buy” rating in a research report on Wednesday, June 10th. Sanford C. Bernstein reissued a “market perform” rating and set a $136.00 target price on shares of Cloudflare in a report on Wednesday, June 10th. Morgan Stanley initiated coverage on shares of Cloudflare in a research report on Tuesday. They issued an “overweight” rating for the company. Finally, BTIG Research lifted their price target on shares of Cloudflare from $243.00 to $269.00 and gave the stock a “buy” rating in a report on Wednesday, June 10th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $244.23.

Cloudflare Stock Performance

The stock has a 50 day moving average of $229.40 and a 200 day moving average of $206.40. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The company has a market capitalization of $96.75 billion, a price-to-earnings ratio of -1,090.52, a price-to-earnings-growth ratio of 270.75 and a beta of 1.67.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The business had revenue of $639.75 million for the quarter, compared to analysts’ expectations of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm’s revenue was up 33.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, analysts predict that Cloudflare, Inc. will post 0.02 EPS for the current year.

Insider Buying and Selling

In other news, Director John Graham-Cumming sold 2,520 shares of the stock in a transaction on Monday, July 6th. The shares were sold at an average price of $247.28, for a total transaction of $623,145.60. Following the completion of the sale, the director directly owned 494,909 shares in the company, valued at $122,381,097.52. This represents a 0.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $249.00, for a total transaction of $33,117.00. Following the sale, the director owned 10,765 shares of the company’s stock, valued at approximately $2,680,485. This trade represents a 1.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 626,185 shares of company stock worth $139,810,855. Corporate insiders own 10.66% of the company’s stock.

Institutional Trading of Cloudflare

A number of large investors have recently bought and sold shares of NET. CX Institutional lifted its stake in shares of Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after purchasing an additional 44 shares during the period. Quadrant Private Wealth Management LLC grew its stake in Cloudflare by 3.2% during the first quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company’s stock worth $341,000 after purchasing an additional 51 shares during the period. Essential Partners LLC increased its holdings in Cloudflare by 14.5% in the first quarter. Essential Partners LLC now owns 402 shares of the company’s stock worth $83,000 after purchasing an additional 51 shares in the last quarter. Jamison Private Wealth Management Inc. increased its holdings in Cloudflare by 2.6% in the first quarter. Jamison Private Wealth Management Inc. now owns 2,064 shares of the company’s stock worth $426,000 after purchasing an additional 52 shares in the last quarter. Finally, Revisor Wealth Management LLC lifted its stake in Cloudflare by 4.0% in the first quarter. Revisor Wealth Management LLC now owns 1,390 shares of the company’s stock valued at $287,000 after buying an additional 53 shares during the period. 82.68% of the stock is currently owned by institutional investors and hedge funds.

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.