Cloudflare (NYSE:NET) CFO Thomas Seifert Sells 55,000 Shares

Cloudflare, Inc. (NYSE:NET) CFO Thomas Seifert sold 55,000 shares of the stock in a transaction dated 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 completion of the transaction, the chief financial officer owned 113,790 shares of the company’s stock, valued at approximately $34,171,137. The trade was a 32.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Cloudflare Stock Down 3.3%

NYSE:NET traded down $9.63 during mid-day trading on Thursday, hitting $283.33. 5,482,078 shares of the company’s stock were exchanged, compared to its average volume of 3,075,594. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $305.00. 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 business has a fifty day moving average price of $255.83 and a 200 day moving average price of $218.26. The company has a market cap of $100.15 billion, a PE ratio of -1,133.31, a P/E/G ratio of 219.10 and a beta of 1.65.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. 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 company earned $0.21 earnings per share. The business’s revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Equities analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current year.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on NET shares. Mizuho raised their price objective on Cloudflare from $260.00 to $310.00 and gave the company an “outperform” rating in a research report on Wednesday, July 15th. Cantor Fitzgerald reissued a “neutral” rating and issued a $250.00 target price on shares of Cloudflare in a report on Monday. Weiss Ratings reissued a “sell (d-)” rating on shares of Cloudflare in a research note on Friday, July 17th. Morgan Stanley raised their price target on Cloudflare from $305.00 to $322.00 and gave the company an “overweight” rating in a report on Friday, July 17th. Finally, Susquehanna lifted their price target on Cloudflare from $190.00 to $200.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $265.27.

Institutional Trading of Cloudflare

Several institutional investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its position in shares of Cloudflare by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock valued at $6,389,167,000 after buying an additional 90,397 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Cloudflare by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock valued at $1,184,044,000 after acquiring an additional 241,981 shares during the last quarter. Jennison Associates LLC grew its stake in shares of Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock worth $906,758,000 after acquiring an additional 2,530,872 shares during the period. First Trust Advisors LP raised its holdings in shares of Cloudflare by 1.6% during the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock valued at $792,377,000 after purchasing an additional 63,198 shares during the last quarter. Finally, Invesco Ltd. raised its holdings in shares of Cloudflare by 1.3% during the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after purchasing an additional 49,485 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat second-quarter expectations. The company reported adjusted EPS of $0.29 versus the $0.27 consensus and revenue of $696.06 million versus estimates of approximately $664.7 million. Revenue increased 35.9% year over year, reinforcing demand for Cloudflare’s connectivity, security and developer products. Cloudflare Q2 earnings report
• Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 EPS guidance increased to $1.25-$1.26, compared with consensus of $0.96, while revenue guidance was set at approximately $2.9 billion versus expectations of $2.8 billion. Third-quarter guidance also exceeded estimates, with EPS of $0.34 and revenue of $736-$737 million. Cloudflare raises annual outlook
• Positive Sentiment: AI demand is becoming a major growth driver. Cloudflare cited rising AI-agent traffic across its network and launched tools including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS. These offerings could expand its enterprise security, AI infrastructure and developer-platform markets. Cloudflare AEO Visibility Dashboard
• Neutral Sentiment: Analyst reaction is mixed. Jefferies maintained a Hold rating, while broader coverage remains generally favorable. The stock’s high beta and sharp recent rally may be contributing to profit-taking even after the earnings beat.
• Negative Sentiment: Insider selling may weigh on sentiment. CEO Matthew Prince sold more than $45 million of shares across multiple transactions, and director Carl Ledbetter sold 5,000 shares for about $1.4 million. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a signal about business prospects, but they can still pressure investor sentiment. SEC insider filing
• Negative Sentiment: Valuation remains a key risk. With Cloudflare valued at roughly $100 billion and still reporting a negative net margin, investors may demand continued acceleration in growth, profitability and cash flow. Any guidance or AI-demand disappointment could trigger further volatility.

About Cloudflare

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.