Cloudflare (NYSE:NET) Hits New 1-Year High After Analyst Upgrade

Cloudflare, Inc. (NYSE:NET) shares reached a new 52-week high during mid-day trading on Tuesday after BTIG Research raised their price target on the stock from $382.00 to $413.00. BTIG Research currently has a buy rating on the stock. Cloudflare traded as high as $370.35 and last traded at $367.0080, with a volume of 228908 shares changing hands. The stock had previously closed at $359.49.

Several other research analysts have also recently weighed in on NET. Zacks Research cut Cloudflare from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 14th. Benchmark cut Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. Needham & Company LLC upped their price target on Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. TD Cowen raised their price target on shares of Cloudflare from $300.00 to $355.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. Finally, Cantor Fitzgerald reiterated a “neutral” rating and issued a $340.00 price objective on shares of Cloudflare in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $326.33.

Insiders Place Their Bets

In other news, CFO Thomas Seifert sold 55,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the sale, the chief financial officer owned 113,790 shares in the company, valued at $34,171,137. This represents a 32.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $294.63, for a total value of $9,723,673.89. Following the completion of the sale, the insider directly owned 69,775 shares of the company’s stock, valued at approximately $20,557,808.25. The trade was a 32.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 392,833 shares of company stock valued at $115,040,919 in the last 90 days. 10.66% of the stock is currently owned by insiders.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: BTIG upgraded Cloudflare to “Buy” and raised its price target from $382 to $413, implying additional upside and reinforcing bullish analyst sentiment. BTIG Research Issues Positive Forecast for Cloudflare Stock Price
• Positive Sentiment: Recent product announcements and company data showing Cloudflare as the fastest provider across 74% of the top 1,000 networks have supported investor enthusiasm for its internet infrastructure and AI-related traffic opportunity. Why Cloudflare Stock Is Trading Up Today
• Positive Sentiment: A partnership with Deutsche Telekom could expand Cloudflare’s European enterprise distribution and create additional security and connectivity growth opportunities. Can Cloudflare’s Deutsche Telekom Deal Drive Enterprise Growth?
• Neutral Sentiment: NET has gained roughly 28% in the past month and about 65% over six months, reaching a new 12-month high. The momentum reflects demand for AI security and growth among large customers, but the sharp advance increases the likelihood of consolidation. Cloudflare Just Gained 28% in a Month
• Negative Sentiment: Investors may be taking profits after the extended rally, particularly because Cloudflare continues to trade at a premium valuation while margin pressure and negative net profitability remain concerns. The latest decline appears more consistent with valuation-related profit-taking than a new fundamental setback. NET Stock Surges 65% in 6 Months

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Violich Capital Management Inc. bought a new position in Cloudflare during the third quarter worth about $226,000. Versant Capital Management Inc raised its stake in Cloudflare by 14.8% in the third quarter. Versant Capital Management Inc now owns 1,342 shares of the company’s stock valued at $466,000 after buying an additional 173 shares during the period. Burkett Financial Services LLC bought a new stake in Cloudflare in the third quarter valued at approximately $76,000. QRG Capital Management Inc. lifted its position in shares of Cloudflare by 26.9% in the second quarter. QRG Capital Management Inc. now owns 89,277 shares of the company’s stock valued at $21,898,000 after buying an additional 18,914 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. lifted its position in shares of Cloudflare by 11.4% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 7,229 shares of the company’s stock valued at $1,773,000 after buying an additional 738 shares during the last quarter. Institutional investors own 82.68% of the company’s stock.

Cloudflare Price Performance

The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The company has a 50 day moving average price of $311.83 and a 200 day moving average price of $257.58. The company has a market capitalization of $125.73 billion, a P/E ratio of -613.30, a P/E/G ratio of 285.92 and a beta of 1.65.

Cloudflare (NYSE:NET) last posted 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. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The business had revenue of $696.06 million for the quarter, compared to analysts’ expectations of $664.66 million. During the same quarter in the prior year, the business earned $0.21 EPS. The firm’s revenue for the quarter 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. On average, equities analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

About Cloudflare

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.