Citigroup Lowers Cloudflare (NYSE:NET) Price Target to $260.00

Cloudflare (NYSE:NET) had its price target reduced by stock analysts at Citigroup from $318.00 to $260.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s price objective would indicate a potential upside of 40.99% from the company’s previous close.

A number of other analysts have also weighed in on the stock. Royal Bank Of Canada upped their target price on shares of Cloudflare from $250.00 to $265.00 and gave the stock an “outperform” rating in a report on Friday, October 31st. Cantor Fitzgerald upped their price target on shares of Cloudflare from $199.00 to $224.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. Oppenheimer began coverage on Cloudflare in a research note on Monday, November 10th. They set an “outperform” rating and a $260.00 price objective for the company. Barclays started coverage on Cloudflare in a research note on Tuesday, December 2nd. They issued an “overweight” rating and a $235.00 target price on the stock. Finally, Mizuho lifted their price target on Cloudflare from $240.00 to $280.00 and gave the company an “outperform” rating in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, Cloudflare presently has a consensus rating of “Moderate Buy” and an average price target of $230.26.

Cloudflare Price Performance

Shares of NYSE NET opened at $184.41 on Friday. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. Cloudflare has a fifty-two week low of $89.42 and a fifty-two week high of $260.00. The stock has a market cap of $64.60 billion, a PE ratio of -614.70, a price-to-earnings-growth ratio of 121.13 and a beta of 1.96. The stock has a fifty day moving average of $200.18 and a 200-day moving average of $206.40.

Cloudflare (NYSE:NET) last issued its earnings results on Thursday, October 30th. The company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.23 by $0.04. Cloudflare had a negative return on equity of 6.54% and a negative net margin of 5.12%.The business had revenue of $562.03 million during the quarter, compared to the consensus estimate of $544.65 million. During the same quarter last year, the company earned $0.20 EPS. The firm’s revenue was up 30.7% compared to the same quarter last year. Cloudflare has set its Q4 2025 guidance at 0.270-0.270 EPS and its FY 2025 guidance at 0.910-0.910 EPS. Equities research analysts anticipate that Cloudflare will post -0.11 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Mark J. Hawkins sold 134 shares of the stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $198.90, for a total transaction of $26,652.60. Following the transaction, the director owned 10,722 shares of the company’s stock, valued at approximately $2,132,605.80. This trade represents a 1.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director John Graham-Cumming sold 2,520 shares of Cloudflare stock in a transaction on Monday, January 5th. The stock was sold at an average price of $200.27, for a total transaction of $504,680.40. Following the completion of the transaction, the director owned 495,191 shares in the company, valued at approximately $99,171,901.57. The trade was a 0.51% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 634,213 shares of company stock valued at $125,864,394 over the last 90 days. Company insiders own 10.89% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Cloudflare by 2.6% during the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company’s stock worth $6,934,958,000 after acquiring an additional 821,684 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Cloudflare by 5.1% during the second quarter. Geode Capital Management LLC now owns 5,536,679 shares of the company’s stock valued at $1,081,533,000 after purchasing an additional 270,227 shares during the period. Invesco Ltd. grew its holdings in shares of Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after purchasing an additional 49,485 shares during the last quarter. Norges Bank purchased a new position in shares of Cloudflare in the second quarter worth $541,462,000. Finally, Groupama Asset Managment raised its holdings in Cloudflare by 82.6% during the 3rd quarter. Groupama Asset Managment now owns 2,100,000 shares of the company’s stock valued at $450,639,000 after buying an additional 950,000 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Acquisition — Cloudflare announced it has hired The Astro Technology Company team (creators of the Astro web framework), a deal that strengthens its developer tooling and edge web‑development capabilities. Read More.
• Positive Sentiment: Acquisition — Cloudflare is acquiring Human Native, an AI data marketplace intended to help AI developers find, access and buy high‑quality training data — a clear strategic push into AI monetization that traders view as growth‑positive. Read More.
• Neutral Sentiment: Analyst action — Citigroup lowered its price target from $318 to $260 but kept a “buy” rating (the new target still implies material upside versus current levels), so the move partially trims enthusiasm while leaving a constructive stance. Read More.
• Neutral Sentiment: Street consensus — The analyst mix remains skewed positive (many Buy/outperform ratings) with a MarketBeat consensus target near the low‑to‑mid‑$200s, keeping expectations for upside but showing varied conviction.
• Negative Sentiment: Insider selling — CEO Michelle Zatlyn disclosed sizeable share sales (25,641 shares on Jan. 13 and Jan. 15 in filings), which can spook some investors as liquidity‑taking or signal near‑term confidence differences. Read More.
• Negative Sentiment: Other insider disposition — A separate disclosure shows Rep. Gilbert Ray Cisneros Jr. sold shares recently, adding to the stream of insider exits. Read More.
• Negative Sentiment: Negative third‑party voice — Weiss Ratings included Cloudflare on a “sell” list, which may pressure sentiment among retail investors who follow such services. Read More.
• Negative Sentiment: Company report risk — A recent Cloudflare report flagged a potential “technical glass ceiling” for AI growth and cybersecurity implications, which could raise execution concerns for investors focused on AI upside. Read More.

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.