Cloudflare (NYSE:NET) Price Target Raised to $333.00

Cloudflare (NYSE:NET) had its price target hoisted by equities research analysts at Piper Sandler from $250.00 to $333.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Piper Sandler’s target price would suggest a potential upside of 9.52% from the stock’s current price.

A number of other analysts have also weighed in on the company. KeyCorp increased their price objective on Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a research note on Friday. Truist Financial raised their price target on shares of Cloudflare from $300.00 to $350.00 and gave the stock a “buy” rating in a report on Friday. UBS Group reaffirmed a “neutral” rating and set a $350.00 price objective on shares of Cloudflare in a research note on Friday. TD Cowen reissued a “buy” rating on shares of Cloudflare in a research note on Friday. Finally, Guggenheim increased their price objective on Cloudflare from $140.00 to $160.00 and gave the stock a “sell” rating in a report on Friday. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, Cloudflare has an average rating of “Moderate Buy” and an average price target of $307.37.

Cloudflare Price Performance

Shares of Cloudflare stock traded up $19.63 during trading on Friday, hitting $304.06. 5,843,126 shares of the stock traded hands, compared to its average volume of 4,316,943. The stock has a market cap of $107.48 billion, a price-to-earnings ratio of -1,219.72, a PEG ratio of 219.10 and a beta of 1.65. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. Cloudflare has a 52 week low of $158.83 and a 52 week high of $324.73. The firm’s fifty day moving average is $255.83 and its 200-day moving average is $218.26.

Cloudflare (NYSE:NET) last issued its earnings results on Wednesday, August 5th. The company reported $0.29 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same quarter in the prior year, the firm earned $0.21 earnings per share. Cloudflare’s revenue for the quarter was up 35.9% on a year-over-year basis. Research analysts expect that Cloudflare will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cloudflare news, insider Michelle Zatlyn sold 35,080 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the transaction, the insider owned 47,425 shares of the company’s stock, valued at approximately $10,148,001.50. This trade represents a 42.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. 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 90 days, insiders sold 749,532 shares of company stock worth $183,882,628. 10.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cloudflare

Institutional investors and hedge funds have recently made changes to their positions in the business. HM Payson & Co. purchased a new stake in shares of Cloudflare in the 4th quarter worth approximately $25,000. Wiser Advisor Group LLC purchased a new position in Cloudflare during the third quarter valued at $26,000. Wexford Capital LP bought a new stake in Cloudflare in the third quarter worth $30,000. CX Institutional grew its stake in shares of Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after acquiring an additional 44 shares during the last quarter. Finally, Cape Investment Advisory Inc. purchased a new stake in shares of Cloudflare in the second quarter worth $33,000. Institutional investors own 82.68% of the company’s stock.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat estimates on revenue and earnings. Second-quarter revenue rose 35.9% year over year to $696.1 million, above the approximately $664.7 million consensus, while adjusted EPS of $0.29 exceeded estimates of $0.27. Growth was supported by large-customer additions, adoption of the Workers developer platform and stronger execution. Cloudflare Q2 earnings beat estimates
• Positive Sentiment: Management raised its financial outlook above Wall Street expectations. Cloudflare forecast third-quarter revenue of approximately $736 million to $737 million and EPS of $0.34, both ahead of consensus. Full-year revenue guidance was lifted to roughly $2.864 billion to $2.870 billion, while full-year EPS guidance was raised to $1.25-$1.26 versus an earlier consensus near $0.96. Cloudflare raises annual outlook
• Positive Sentiment: AI-related demand is strengthening the growth narrative. Rising traffic from AI agents is increasing usage of Cloudflare’s network and security services. The company also launched Kitesurf, a cloud-hosted browser designed for AI agents, and introduced tools such as its AEO Visibility Dashboard to help businesses monitor visibility in AI-generated recommendations. Cloudflare launches Kitesurf
• Positive Sentiment: Analysts responded with higher targets. BTIG, Citizens JMP, Needham, Oppenheimer and Truist raised their price targets, with several maintaining Buy or Outperform ratings. The revisions reflect improved estimates for AI infrastructure demand and Cloudflare’s execution.
• Neutral Sentiment: Investor expectations are elevated. Cloudflare’s rally has pushed its valuation to exceptionally high levels, and the company continues to report a negative net margin. Sustaining rapid growth, improving profitability and converting AI demand into recurring revenue will be important for further gains.
• Negative Sentiment: Insider selling remains a sentiment risk. CEO Matthew Prince sold more than $45 million of shares in several transactions, and director Carl Ledbetter sold about $1.4 million. The sales were made under pre-arranged Rule 10b5-1 plans and do not necessarily indicate weakening business prospects, but they may concern investors after the stock’s advance.

About Cloudflare

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.