Stock Traders Purchase Large Volume of Call Options on Cloudflare (NYSE:NET)

Cloudflare, Inc. (NYSE:NET) was the recipient of some unusual options trading on Thursday. Traders bought 13,474 call options on the stock. This represents an increase of 11% compared to the typical daily volume of 12,168 call options.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on NET shares. DZ Bank upgraded shares of Cloudflare from a “sell” rating to a “hold” rating and set a $237.00 price objective for the company in a report on Wednesday, November 5th. Needham & Company LLC decreased their price target on Cloudflare from $285.00 to $250.00 and set a “buy” rating for the company in a research note on Wednesday. Cantor Fitzgerald reiterated a “neutral” rating and set a $224.00 price target on shares of Cloudflare in a research report on Wednesday. Argus upped their price objective on Cloudflare from $238.00 to $265.00 and gave the company a “buy” rating in a report on Monday, November 10th. Finally, Royal Bank Of Canada boosted their price target on shares of Cloudflare from $230.00 to $240.00 and gave the stock an “outperform” rating in a research report 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 assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $232.71.

Cloudflare Trading Down 3.2%

NET traded down $6.10 during trading on Thursday, reaching $183.31. The company had a trading volume of 4,443,333 shares, compared to its average volume of 5,169,539. The firm’s 50-day simple moving average is $190.74 and its 200 day simple moving average is $204.92. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. The company has a market cap of $64.21 billion, a price-to-earnings ratio of -632.77, a PEG ratio of 156.00 and a beta of 1.97. Cloudflare has a 12-month low of $89.42 and a 12-month high of $260.00.

Cloudflare (NYSE:NET) last announced its earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, topping the consensus estimate of $0.27 by $0.01. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.40%. The company had revenue of $614.51 million during the quarter, compared to analysts’ expectations of $591.67 million. During the same period last year, the company posted $0.19 earnings per share. The business’s revenue for the quarter was up 33.6% on a year-over-year basis. Equities research analysts anticipate that Cloudflare will post -0.11 earnings per share for the current year.

Insider Activity

In other news, Director Carl Ledbetter sold 15,000 shares of the stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $211.16, for a total value of $3,167,400.00. Following the completion of the transaction, the director owned 953,073 shares of the company’s stock, valued at approximately $201,250,894.68. This represents a 1.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Thomas J. Seifert sold 10,000 shares of the firm’s stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $178.37, for a total value of $1,783,700.00. Following the transaction, the chief financial officer directly owned 137,486 shares in the company, valued at $24,523,377.82. This trade represents a 6.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 633,347 shares of company stock worth $124,873,834 over the last ninety days. 10.89% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Physician Wealth Advisors Inc. boosted its position in Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock worth $26,000 after acquiring an additional 104 shares during the period. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare during the third quarter worth approximately $26,000. HM Payson & Co. purchased a new position in Cloudflare during the fourth quarter valued at approximately $25,000. Westside Investment Management Inc. increased its stake in Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock valued at $28,000 after buying an additional 65 shares during the period. Finally, ORG Wealth Partners LLC lifted its position in Cloudflare by 101.4% in the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock worth $30,000 after buying an additional 70 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q4 beat and upbeat guidance: Cloudflare reported revenue of $614.5M (+33.6% YoY) and $0.28 EPS, topping estimates and issuing 2026 revenue guidance above Street forecasts—management highlighted record ACV and accelerating RPO. Business Wire: Q4 results
• Positive Sentiment: AI agent tailwind: Management and coverage note growing “agentic” AI traffic (e.g., Moltbot) is increasing demand for Cloudflare’s networking and security stack—a key driver cited for the stronger guidance. CNBC: AI agent wave
• Positive Sentiment: Analyst upgrades/target raises: Several firms raised targets or upgraded NET (notably Robert W. Baird upgrade and Wells Fargo/Barclays target increases), supporting upside narratives. Zacks/Baird note
• Neutral Sentiment: Mixed analyst stance: Some houses reaffirmed neutral/hold (Cantor Fitzgerald) or trimmed targets modestly (Needham, Scotiabank) — overall consensus is a “Moderate Buy” but with a wide range of PTs. Street Insider: Cantor Fitzgerald
• Neutral Sentiment: Analyst/valuation debate: Several pieces evaluate whether recent AI deals and record contracts already price in much of the upside; that debate is keeping some traders cautious. Zacks: Analyst roundup
• Negative Sentiment: Insider sale: Director John Graham‑Cumming sold 2,520 shares (small vs. his holdings) — flagged by traders as a short‑term negative catalyst. SEC: Form 4
• Negative Sentiment: Institutional trimming/profit‑taking: Filings show some funds reduced stakes (e.g., Alfreton Capital cut ~55%), consistent with profit‑taking after the post‑earnings pop. DefenseWorld: Alfreton selling
• Negative Sentiment: Valuation questions: Coverage notes the company’s rich valuation after the rally, and some investors may be rotating out to lock gains or wait for clearer margin/earnings improvement. Yahoo: Valuation check

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.