Cloudflare (NYSE:NET) Stock Gets Downgrade from Zacks Research

Cloudflare (NYSE:NET) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Wednesday, Zacks reports.

A number of other research analysts have also weighed in on NET. Wall Street Zen lowered Cloudflare from a “buy” rating to a “hold” rating in a report on Sunday, September 6th. Scotiabank upped their target price on shares of Cloudflare from $300.00 to $390.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Raymond James Financial began coverage on shares of Cloudflare in a research report on Tuesday, July 7th. They issued a “strong-buy” rating for the company. Citizens Jmp reiterated a “market outperform” rating and issued a $394.00 target price on shares of Cloudflare in a research report on Monday, August 31st. Finally, Jefferies Financial Group set a $350.00 price target on shares of Cloudflare in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $330.59.

Cloudflare Stock Performance

NYSE NET opened at $314.76 on Wednesday. The company has a market cap of $111.26 billion, a PE ratio of -542.69, a price-to-earnings-growth ratio of 257.95 and a beta of 1.65. The stock’s 50 day simple moving average is $319.61 and its 200-day simple moving average is $263.78. Cloudflare has a 1-year low of $158.83 and a 1-year high of $370.35. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The firm had revenue of $696.06 million for the quarter, compared to analyst estimates of $664.66 million. During the same period in the previous year, the company posted $0.21 earnings per share. The business’s revenue 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. As a group, equities research analysts anticipate that Cloudflare will post 0.03 EPS for the current fiscal year.

Insider Activity

In other Cloudflare news, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total transaction of $11,494,614.87. Following the transaction, the insider directly owned 69,775 shares of the company’s stock, valued at $24,301,934.75. The trade was a 32.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $353.15, for a total transaction of $1,765,750.00. Following the completion of the transaction, the director owned 873,073 shares in the company, valued at $308,325,729.95. The trade was a 0.57% 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. Over the last three months, insiders sold 458,839 shares of company stock worth $138,172,392. Company insiders own 10.66% of the company’s stock.

Institutional Trading of Cloudflare

Hedge funds have recently made changes to their positions in the company. Armstrong Advisory Group Inc. raised its position in shares of Cloudflare by 31.2% during the 3rd quarter. Armstrong Advisory Group Inc. now owns 164 shares of the company’s stock valued at $57,000 after buying an additional 39 shares during the period. CX Institutional lifted its holdings in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after acquiring an additional 44 shares during the last quarter. Wealth Architects LLC lifted its holdings in Cloudflare by 4.6% in the second quarter. Wealth Architects LLC now owns 1,022 shares of the company’s stock valued at $251,000 after acquiring an additional 45 shares during the last quarter. Cornerstone Financial Management LLC lifted its holdings in Cloudflare by 65.3% in the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after acquiring an additional 47 shares during the last quarter. Finally, Forum Financial Management LP lifted its holdings in Cloudflare by 3.5% in the second quarter. Forum Financial Management LP now owns 1,498 shares of the company’s stock valued at $367,000 after acquiring an additional 50 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

About Cloudflare

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.