Wells Fargo & Company Forecasts Strong Price Appreciation for Cloudflare (NYSE:NET) Stock

Cloudflare (NYSE:NET) had its price target boosted by analysts at Wells Fargo & Company from $265.00 to $270.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Wells Fargo & Company‘s price target would indicate a potential upside of 45.57% from the company’s previous close.

Several other brokerages have also issued reports on NET. Barclays lifted their price target on shares of Cloudflare from $235.00 to $250.00 and gave the company an “overweight” rating in a report on Wednesday. Mizuho decreased their target price on shares of Cloudflare from $280.00 to $255.00 and set an “outperform” rating on the stock in a research note on Wednesday, January 21st. Susquehanna upped their price target on shares of Cloudflare from $205.00 to $260.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Citigroup cut their price objective on Cloudflare from $318.00 to $260.00 and set a “buy” rating on the stock in a report on Friday, January 16th. Finally, Morgan Stanley set a $245.00 price objective on Cloudflare in a research report on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Cloudflare has an average rating of “Moderate Buy” and an average target price of $232.89.

Cloudflare Price Performance

Cloudflare stock opened at $185.48 on Wednesday. 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 52 week low of $89.42 and a 52 week high of $260.00. The stock has a market capitalization of $64.97 billion, a P/E ratio of -639.56, a price-to-earnings-growth ratio of 164.18 and a beta of 1.97. The stock has a fifty day moving average of $190.36 and a 200-day moving average of $204.79.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.01. The business had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.Cloudflare’s revenue was up 33.6% compared to the same quarter last year. During the same period last year, the firm posted $0.19 earnings per share. On average, sell-side analysts expect that Cloudflare will post -0.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cloudflare news, Director John Graham-Cumming sold 2,520 shares of the company’s stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $173.35, for a total value of $436,842.00. Following the sale, the director owned 495,191 shares in the company, valued at approximately $85,841,359.85. The trade was a 0.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Thomas J. Seifert sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $178.37, for a total value of $1,783,700.00. Following the transaction, the chief financial officer owned 137,486 shares of the company’s stock, valued at $24,523,377.82. This trade represents a 6.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 633,347 shares of company stock valued at $124,873,834 over the last ninety days. 10.89% of the stock is currently owned by corporate insiders.

Institutional Trading of Cloudflare

Institutional investors have recently added to or reduced their stakes in the stock. Advisors Asset Management Inc. increased its position in Cloudflare by 78.4% during the 4th quarter. Advisors Asset Management Inc. now owns 2,434 shares of the company’s stock valued at $480,000 after purchasing an additional 1,070 shares during the period. CI Investments Inc. boosted its stake in shares of Cloudflare by 40.5% in the 4th quarter. CI Investments Inc. now owns 103,834 shares of the company’s stock valued at $20,471,000 after purchasing an additional 29,927 shares during the last quarter. DRW Securities LLC acquired a new stake in shares of Cloudflare during the fourth quarter worth $578,000. Insigneo Advisory Services LLC raised its stake in Cloudflare by 15.7% during the fourth quarter. Insigneo Advisory Services LLC now owns 2,630 shares of the company’s stock worth $519,000 after buying an additional 356 shares during the last quarter. Finally, Brooklyn Investment Group lifted its holdings in Cloudflare by 96.8% in the fourth quarter. Brooklyn Investment Group now owns 7,391 shares of the company’s stock valued at $1,483,000 after buying an additional 3,636 shares during the period. 82.68% of the stock is currently owned by institutional investors.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q4 beat and bullish guidance: Cloudflare reported revenue of $614.5M (+33.6% YoY) and EPS of $0.28, topping estimates, and issued a 2026 revenue target (~$2.795B) that signals sustained AI-driven demand and record contract activity. CNBC: Q4 results
• Positive Sentiment: Analyst upgrades/target increases: Multiple firms raised targets or upgraded NET (e.g., Robert W. Baird upgrade to outperform with a $260 PT; Wells Fargo and Barclays raised targets), supporting further upside expectations. Zacks: Analyst optimism
• Positive Sentiment: Unusual options activity: Elevated call buying (≈13,474 calls traded, ~11% above average) suggests some traders are placing bullish bets on further upside. No link
• Neutral Sentiment: Valuation/sector checks: Several pieces examine whether the stock’s elevated valuation is justified after the AI-fueled beat — useful reading for investors weighing entry points. Yahoo: Valuation check
• Neutral Sentiment: Cantor Fitzgerald reaffirmed a neutral rating ($224 PT), highlighting mixed analyst sentiment despite the strong quarter. StreetInsider: Cantor Fitzgerald
• Negative Sentiment: Insider sale disclosed: Director John Graham‑Cumming sold 2,520 shares (small relative to his stake), which can trigger short-term caution among some investors. SEC: Form 4
• Negative Sentiment: Institutional trimming: Alfreton Capital reported a ~55% reduction in its stake, signaling some profit-taking by funds after the run-up. DefenseWorld: Alfreton selling
• Negative Sentiment: Some target trims: A few analysts trimmed price targets (e.g., Scotiabank to $225, Needham trimmed PT) — mixed signals that add short‑term volatility risk. TickerReport: PT cuts

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.