Cloudflare (NYSE:NET) Upgraded at DZ Bank

DZ Bank upgraded shares of Cloudflare (NYSE:NET) from a sell rating to a buy rating in a research report report published on Tuesday, MarketBeat Ratings reports. The firm currently has $300.00 price target on the stock.

NET has been the subject of several other reports. Stephens started coverage on Cloudflare in a research note on Tuesday, November 3rd. They issued an “overweight” rating for the company. Cantor Fitzgerald cut their price target on Cloudflare from $340.00 to $310.00 and set a “neutral” rating on the stock in a research note on Friday, November 6th. Guggenheim upped their price target on Cloudflare from $160.00 to $190.00 and gave the company a “buy” rating in a research note on Friday, November 6th. Citizens Jmp reiterated a “market outperform” rating and issued a $394.00 price target on shares of Cloudflare in a report on Monday, August 31st. Finally, Wolfe Research upgraded Cloudflare from a “hold” rating to an “outperform” rating in a research report on Friday, November 6th. Twenty-six investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $338.48.

Cloudflare Price Performance

NET opened at $319.62 on Tuesday. Cloudflare has a one year low of $158.83 and a one year high of $370.35. The company has a debt-to-equity ratio of 3.03, a current ratio of 3.80 and a quick ratio of 3.80. The company’s 50 day simple moving average is $319.66 and its 200-day simple moving average is $252.42.

Cloudflare (NYSE:NET) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.04. Cloudflare had a negative net margin of 8.75% and a negative return on equity of 6.05%. The firm had revenue of $782.51 million during the quarter, compared to analysts’ expectations of $737.16 million. During the same quarter in the previous year, the company posted $0.27 EPS. Cloudflare’s revenue was up 39.2% on a year-over-year basis. Sell-side analysts anticipate that Cloudflare will post 0.04 EPS for the current fiscal year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 12,500 shares of the company’s stock in a transaction on Monday, October 19th. The shares were sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the completion of the sale, the chief financial officer owned 104,958 shares in the company, valued at approximately $31,444,367.22. The trade was a 10.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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 on Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total value of $9,156,022.29. Following the completion of the transaction, the insider directly owned 69,775 shares in the company, valued at approximately $19,357,678.25. This trade represents 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. Over the last ninety days, insiders have sold 256,537 shares of company stock valued at $78,750,901. 10.66% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cloudflare

A number of institutional investors have recently made changes to their positions in the stock. Meeder Advisory Services Inc. lifted its stake in Cloudflare by 9.5% in the third quarter. Meeder Advisory Services Inc. now owns 9,199 shares of the company’s stock valued at $3,195,000 after buying an additional 798 shares during the period. Benjamin Edwards Inc. boosted its holdings in Cloudflare by 35.7% during the third quarter. Benjamin Edwards Inc. now owns 5,331 shares of the company’s stock worth $1,851,000 after buying an additional 1,403 shares during the last quarter. BNP Paribas grew its position in shares of Cloudflare by 29.4% during the 3rd quarter. BNP Paribas now owns 11,109 shares of the company’s stock worth $3,858,000 after buying an additional 2,521 shares during the period. Jackson Thornton Wealth Management LLC grew its position in shares of Cloudflare by 37.6% during the 3rd quarter. Jackson Thornton Wealth Management LLC now owns 1,661 shares of the company’s stock worth $577,000 after buying an additional 454 shares during the period. Finally, E Fund Management Hong Kong Co. Ltd. acquired a new position in shares of Cloudflare during the 3rd quarter worth about $1,434,000. 82.68% of the stock is owned by institutional investors and hedge funds.

Key Cloudflare News

These are some of the NET news items that stood out recently:

• Positive Sentiment: Cloudflare reported third-quarter revenue of $782.5 million, up 39% year over year and ahead of expectations. It also raised its fourth-quarter and full-year sales guidance and moved up its expected timeline for GAAP profitability—signals that could reinforce confidence in its growth outlook. Article: How Earnings Beat Will Impact Cloudflare Stock Investors
• Positive Sentiment: Cloudflare’s Workers platform has passed 10 million developers. Growing enterprise adoption could support larger contracts and higher customer spending over time. Article: Can Rising Adoption of Workers Platform Boost NET’s Long-Term Growth?
• Negative Sentiment: Valuation and pullback risk remain concerns after a strong run. A Trefis article specifically examines how large a future decline could be, underscoring the potential for volatility if growth expectations disappoint. Article: How Big Could Cloudflare Stock’s Next Fall Be?

About Cloudflare

Cloudflare, Inc. provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats. The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.