Needham & Company LLC Cuts Cloudflare (NYSE:NET) Price Target to $250.00

Cloudflare (NYSE:NET) had its price target reduced by research analysts at Needham & Company LLC from $285.00 to $250.00 in a report issued on Wednesday,Benzinga reports. The firm currently has a “buy” rating on the stock. Needham & Company LLC’s price target suggests a potential upside of 38.55% from the company’s previous close.

Several other analysts have also recently issued reports on the stock. Argus upped their price objective on shares of Cloudflare from $238.00 to $265.00 and gave the company a “buy” rating in a research note on Monday, November 10th. KeyCorp lifted their target price on shares of Cloudflare from $235.00 to $300.00 and gave the stock an “overweight” rating in a research note on Friday, October 31st. Oppenheimer started coverage on shares of Cloudflare in a research note on Monday, November 10th. They issued an “outperform” rating and a $260.00 price target for the company. Mizuho decreased their price objective on Cloudflare from $280.00 to $255.00 and set an “outperform” rating on the stock in a report on Wednesday, January 21st. Finally, UBS Group reaffirmed a “neutral” rating and issued a $220.00 price target on shares of Cloudflare in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, Cloudflare has an average rating of “Moderate Buy” and a consensus target price of $235.93.

Cloudflare Stock Performance

NYSE:NET opened at $180.44 on Wednesday. The company has a fifty day moving average of $191.02 and a two-hundred day moving average of $205.03. Cloudflare has a fifty-two week low of $89.42 and a fifty-two week high of $260.00. The stock has a market capitalization of $63.20 billion, a PE ratio of -601.47, a P/E/G ratio of 150.60 and a beta of 1.97. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.01. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. The firm had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. During the same quarter in the prior year, the firm earned $0.19 EPS. The company’s revenue for the quarter was up 33.6% on a year-over-year basis. As a group, research analysts forecast that Cloudflare will post -0.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the firm’s stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $189.47, for a total value of $9,925,196.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Thomas J. Seifert sold 10,000 shares of the business’s stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $178.37, for a total transaction of $1,783,700.00. Following the sale, the chief financial officer directly owned 137,486 shares in the company, valued at approximately $24,523,377.82. This represents a 6.78% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 630,827 shares of company stock valued at $124,436,992. Corporate insiders own 10.89% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

A number of large investors have recently bought and sold shares of the stock. Physician Wealth Advisors Inc. raised its position in shares of Cloudflare by 693.3% in the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock valued at $26,000 after buying an additional 104 shares during the last quarter. Wiser Advisor Group LLC acquired a new position in Cloudflare during the 3rd quarter worth approximately $26,000. Westside Investment Management Inc. increased its stake in Cloudflare by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock worth $28,000 after buying an additional 65 shares during the period. ORG Wealth Partners LLC grew its stake in shares of Cloudflare by 101.4% during the third quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock valued at $30,000 after acquiring an additional 70 shares in the last quarter. Finally, Wexford Capital LP purchased a new stake in shares of Cloudflare during the third quarter worth about $30,000. Institutional investors and hedge funds own 82.68% of the company’s stock.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Quarterly beats — Cloudflare reported Q4 revenue of $614.5M and EPS $0.28, topping consensus and showing ~34% YoY revenue growth; management framed the quarter as a very strong finish. Read More.
• Positive Sentiment: Large enterprise traction — management disclosed the largest annual contract ever (avg. $42.5M/year) and ~50% growth in new ACV, signaling stronger enterprise sales and sticky recurring revenue. Read More.
• Positive Sentiment: Raised outlook and AI-driven demand — Cloudflare outlined a $2.795B 2026 revenue target and said AI adoption is accelerating demand for its connectivity/cloud services, with management forecasting FY and Q1 sales above Street estimates. Read More. Read More.
• Neutral Sentiment: Conference materials and call available — investors can review the full earnings slide deck and transcript for detail on margins, unit economics and ACV cadence. Read More. Read More.
• Neutral Sentiment: Analyst/coverage notes — coverage pieces highlight Cloudflare’s resilience in an AI-driven software market and its streak of EPS beats, which supports a growth narrative but valuation and profitability remain focal points for investors. Read More.
• Negative Sentiment: Institutional selling — Alfreton Capital cut its Cloudflare stake by ~55% during the period, reducing a previously large holding, which could signal some profit-taking or portfolio reshuffling by an investor. Read More.

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.