Cloudflare (NYSE:NET) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of Cloudflare (NYSE:NET) from a buy rating to a hold rating in a research note published on Sunday morning,Wall Street Zen reports.

NET has been the subject of a number of other research reports. Wells Fargo & Company increased their price objective on Cloudflare from $300.00 to $380.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. New Street Research reiterated a “market outperform” rating on shares of Cloudflare in a research report on Monday, June 15th. Truist Financial boosted their target price on Cloudflare from $300.00 to $350.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Citigroup reaffirmed a “market outperform” rating on shares of Cloudflare in a research note on Monday, August 31st. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $389.00 price target on shares of Cloudflare in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $320.19.

Cloudflare Price Performance

NET stock opened at $278.88 on Friday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. Cloudflare has a 52 week low of $158.83 and a 52 week high of $332.22. The firm’s fifty day moving average is $280.40 and its 200 day moving average is $235.41. The firm has a market cap of $98.58 billion, a P/E ratio of -480.83, a P/E/G ratio of 228.00 and a beta of 1.66.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The business had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same period in the previous year, the firm posted $0.21 earnings per share. The firm’s revenue for the quarter was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Research analysts predict that Cloudflare will post 0.03 earnings per share for the current year.

Insider Activity at Cloudflare

In other news, insider Alissa Michelle Starzak sold 2,538 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $304.68, for a total value of $773,277.84. Following the transaction, the insider owned 112,082 shares in the company, valued at approximately $34,149,143.76. This represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. 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 that occurred on Friday, August 21st. The shares were sold at an average price of $277.43, for a total transaction of $9,156,022.29. Following the sale, the insider owned 69,775 shares in the company, valued at approximately $19,357,678.25. The trade was 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. Insiders sold a total of 640,238 shares of company stock worth $168,400,647 in the last ninety days. 10.66% of the stock is currently owned by company insiders.

Institutional Trading of Cloudflare

Several institutional investors have recently added to or reduced their stakes in NET. Cornerstone Financial Management LLC increased its holdings in shares of Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock worth $29,000 after purchasing an additional 47 shares in the last quarter. Corient Private Wealth LP boosted its position in shares of Cloudflare by 837.5% during the second quarter. Corient Private Wealth LP now owns 208,103 shares of the company’s stock valued at $51,044,000 after buying an additional 185,906 shares during the last quarter. HighTower Advisors LLC increased its holdings in Cloudflare by 35.8% in the 2nd quarter. HighTower Advisors LLC now owns 126,579 shares of the company’s stock worth $31,047,000 after buying an additional 33,398 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Cloudflare in the 2nd quarter worth about $7,640,000. Finally, California State Teachers Retirement System raised its position in Cloudflare by 24,491.6% in the 2nd quarter. California State Teachers Retirement System now owns 114,562,194 shares of the company’s stock worth $28,099,815,000 after buying an additional 114,096,335 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

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.