Cloudflare (NYSE:NET) Trading Down 6.4% – What’s Next?

Cloudflare, Inc. (NYSE:NET) was down 6.4% during mid-day trading on Tuesday . The company traded as low as $287.14 and last traded at $285.6150. Approximately 963,459 shares changed hands during trading, a decline of 77% from the average session volume of 4,250,159 shares. The stock had previously closed at $305.11.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. 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. Sanford C. Bernstein reissued a “market perform” rating and issued a $136.00 target price on shares of Cloudflare in a report on Wednesday, June 10th. The Goldman Sachs Group reissued a “buy” rating and issued a $389.00 target price on shares of Cloudflare in a research note on Friday, August 7th. Cantor Fitzgerald restated a “neutral” rating and set a $250.00 price target on shares of Cloudflare in a report on Monday, August 3rd. Finally, Raymond James Financial assumed coverage on shares of Cloudflare in a research note on Tuesday, July 7th. They issued a “strong-buy” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cloudflare has an average rating of “Moderate Buy” and an average target price of $320.19.

Cloudflare Price Performance

The firm has a fifty day moving average price of $276.18 and a two-hundred day moving average price of $232.91. The stock has a market capitalization of $101.28 billion, a P/E ratio of -494.00, a PEG ratio of 184.12 and a beta of 1.65. 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 (NYSE:NET) last issued its quarterly earnings data 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 firm 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 business earned $0.21 EPS. The business’s quarterly 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, analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other Cloudflare news, CFO Thomas J. Seifert sold 10,000 shares of Cloudflare stock in a transaction on Monday, August 17th. The shares were sold at an average price of $307.32, for a total value of $3,073,200.00. Following the sale, the chief financial officer directly owned 110,846 shares in the company, valued at approximately $34,065,192.72. The trade was a 8.27% decrease in their position. The sale was disclosed in a legal 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 Cloudflare stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $277.43, for a total value of $9,156,022.29. Following the completion of the sale, the insider directly owned 69,775 shares in the company, valued at $19,357,678.25. This trade represents a 32.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 640,531 shares of company stock worth $168,474,753 in the last three months. 10.66% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Cornerstone Financial Management LLC lifted its stake in shares of Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new position in shares of Cloudflare during the 2nd quarter valued at approximately $30,000. Wiser Advisor Group LLC purchased a new stake in Cloudflare during the 3rd quarter valued at $26,000. HM Payson & Co. purchased a new stake in Cloudflare during the 4th quarter valued at $25,000. Finally, CX Institutional lifted its position in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after buying an additional 44 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 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.