Cloudflare (NYSE:NET) Shares Down 6.4% – Should You Sell?

Cloudflare, Inc. (NYSE:NET) dropped 6.4% during trading on Tuesday . The stock traded as low as $287.14 and last traded at $285.6150. 963,459 shares changed hands during trading, a decline of 77% from the average daily volume of 4,250,159 shares. The stock had previously closed at $305.11.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on NET shares. Guggenheim raised their price objective on shares of Cloudflare from $140.00 to $160.00 and gave the stock a “sell” rating in a research note on Friday, August 7th. Barclays boosted their price objective on shares of Cloudflare from $300.00 to $355.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. UBS Group boosted their price target on shares of Cloudflare from $250.00 to $350.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Scotiabank increased their price objective on Cloudflare from $300.00 to $390.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Finally, Benchmark downgraded Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $320.19.

Cloudflare Price Performance

The stock’s 50 day simple moving average is $278.40 and its 200-day simple moving average is $234.20. The stock has a market capitalization of $96.37 billion, a price-to-earnings ratio of -470.07, a PEG ratio of 233.38 and a beta of 1.66. 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) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.02. The business 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%. Cloudflare’s revenue for the quarter was up 35.9% on a year-over-year basis. During the same quarter last year, the firm earned $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. On average, analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Michelle Zatlyn sold 33,003 shares of the company’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $277.43, for a total transaction of $9,156,022.29. Following the completion of the sale, the insider owned 69,775 shares in the company, valued at approximately $19,357,678.25. This represents a 32.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Janel Riley sold 3,481 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $305.26, for a total value of $1,062,610.06. Following the completion of the transaction, the chief accounting officer directly owned 41,547 shares in the company, valued at $12,682,637.22. The trade was a 7.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 640,531 shares of company stock valued at $168,474,753. 10.66% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of NET. HM Payson & Co. acquired a new stake in shares of Cloudflare in the fourth quarter valued at about $25,000. Wiser Advisor Group LLC acquired a new position in shares of Cloudflare during the 3rd quarter worth about $26,000. Cornerstone Financial Management LLC lifted its position in shares of Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock worth $29,000 after purchasing an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new stake in Cloudflare during the 2nd quarter valued at approximately $30,000. Finally, Wexford Capital LP acquired a new stake in Cloudflare in the 3rd quarter valued at approximately $30,000. Institutional investors own 82.68% of the company’s stock.

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.