Cloudflare (NYSE:NET) Upgraded at Zacks Research

Zacks Research upgraded shares of Cloudflare (NYSE:NET) from a hold rating to a strong-buy rating in a research note published on Monday morning,Zacks.com reports.

NET has been the subject of a number of other research reports. Cantor Fitzgerald reaffirmed a “neutral” rating and set a $230.00 target price (up from $224.00) on shares of Cloudflare in a report on Wednesday, June 10th. Scotiabank upgraded shares of Cloudflare from a “sector perform” rating to a “sector outperform” rating and increased their price target for the stock from $225.00 to $300.00 in a report on Tuesday, July 7th. Needham & Company LLC increased their price target on shares of Cloudflare from $250.00 to $280.00 and gave the stock a “buy” rating in a report on Wednesday, June 10th. Citizens Jmp raised their price target on shares of Cloudflare from $270.00 to $330.00 and gave the stock a “market outperform” rating in a research report on Monday. Finally, Piper Sandler restated an “overweight” rating on shares of Cloudflare in a research note on Wednesday, June 10th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Cloudflare has a consensus rating of “Moderate Buy” and an average target price of $258.59.

Cloudflare Price Performance

NYSE NET opened at $268.86 on Monday. The company has a market cap of $95.04 billion, a price-to-earnings ratio of -1,075.46, a PEG ratio of 277.55 and a beta of 1.67. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The stock’s fifty day moving average price is $241.16 and its 200 day moving average price is $211.56. Cloudflare has a 1 year low of $158.83 and a 1 year high of $291.00.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $639.75 million during the quarter, compared to analysts’ expectations of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm’s revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, equities research analysts forecast that Cloudflare will post 0.02 earnings per share for the current year.

Insider Activity

In related news, CEO Matthew Prince sold 52,422 shares of Cloudflare stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total value of $7,506,418.40. Following the completion of the transaction, the insider directly owned 47,425 shares of the company’s stock, valued at $10,148,001.50. The trade was a 42.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 564,903 shares of company stock valued at $127,356,194. Insiders own 10.66% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Hedge funds and other institutional investors have recently made changes to their positions in the company. Empowered Funds LLC increased its holdings in shares of Cloudflare by 34.2% during the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock valued at $750,000 after purchasing an additional 1,696 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in Cloudflare during the second quarter worth $424,000. Cerity Partners LLC boosted its holdings in Cloudflare by 30.1% during the second quarter. Cerity Partners LLC now owns 27,531 shares of the company’s stock worth $5,391,000 after buying an additional 6,363 shares in the last quarter. Sei Investments Co. grew its position in Cloudflare by 40.1% during the second quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock valued at $64,432,000 after buying an additional 94,112 shares during the period. Finally, The Manufacturers Life Insurance Company grew its position in Cloudflare by 14.6% during the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company’s stock valued at $3,224,000 after buying an additional 2,093 shares during the period. Institutional investors and hedge funds own 82.68% of the company’s stock.

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.