Cloudflare (NYSE:NET) Stock Gets Downgrade from Wall Street Zen

Cloudflare (NYSE:NET) was downgraded by equities research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Sunday, Wall Street Zen reports.

NET has been the topic of several other reports. Citizens Jmp restated a “market outperform” rating and issued a $394.00 price objective on shares of Cloudflare in a research report on Monday, August 31st. KeyCorp increased their target price on Cloudflare from $300.00 to $375.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Scotiabank lifted their target price on Cloudflare from $300.00 to $390.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Sanford C. Bernstein lifted their target price on Cloudflare from $164.00 to $181.00 and gave the company a “market perform” rating in a research note on Thursday, September 17th. Finally, DZ Bank cut Cloudflare from a “strong-buy” rating to a “strong sell” rating in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $330.59.

Cloudflare Stock Performance

Shares of NYSE NET opened at $332.86 on Friday. The firm has a fifty day moving average price of $319.62 and a 200-day moving average price of $245.41. 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 stock has a market cap of $117.65 billion, a PE ratio of -573.89, a price-to-earnings-growth ratio of 259.07 and a beta of 1.65. Cloudflare has a 1 year low of $158.83 and a 1 year high of $370.35.

Cloudflare (NYSE:NET) last announced 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. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. During the same period last year, the firm earned $0.21 EPS. The company’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. Equities analysts anticipate that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total transaction of $11,494,614.87. Following the completion of the transaction, the insider owned 69,775 shares of the company’s stock, valued at $24,301,934.75. This represents a 32.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 12,500 shares of the firm’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the transaction, the chief financial officer owned 104,958 shares of the company’s stock, valued at approximately $31,444,367.22. The trade was a 10.64% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 476,339 shares of company stock worth $143,439,267. Insiders own 10.66% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Hedge funds have recently made changes to their positions in the company. Jennison Associates LLC boosted its stake in Cloudflare by 135.8% during the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock valued at $906,758,000 after buying an additional 2,530,872 shares during the last quarter. Amundi increased its stake in Cloudflare by 2.0% in the 1st quarter. Amundi now owns 1,707,256 shares of the company’s stock worth $352,275,000 after acquiring an additional 32,804 shares during the last quarter. Pictet Asset Management Holding SA increased its stake in Cloudflare by 17.6% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,381,985 shares of the company’s stock worth $284,900,000 after acquiring an additional 206,506 shares during the last quarter. National Pension Service raised its holdings in shares of Cloudflare by 1.6% during the 2nd quarter. National Pension Service now owns 959,987 shares of the company’s stock worth $235,466,000 after acquiring an additional 15,546 shares in the last quarter. Finally, Swedbank AB raised its holdings in shares of Cloudflare by 697.5% during the 1st quarter. Swedbank AB now owns 927,606 shares of the company’s stock worth $191,402,000 after acquiring an additional 811,297 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Company Profile

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.