Cloudflare (NYSE:NET) Trading Down 3.3% – Here’s Why

Cloudflare, Inc. (NYSE:NET) traded down 3.3% on Friday . The company traded as low as $217.59 and last traded at $217.22. 190,818 shares were traded during mid-day trading, a decline of 94% from the average session volume of 3,393,755 shares. The stock had previously closed at $224.56.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. Bank of America upped their target price on shares of Cloudflare from $235.00 to $240.00 and gave the stock a “buy” rating in a research note on Friday, August 1st. Morgan Stanley upped their target price on shares of Cloudflare from $225.00 to $235.00 and gave the stock an “overweight” rating in a research note on Friday, August 1st. Wells Fargo & Company upped their target price on shares of Cloudflare from $225.00 to $250.00 and gave the stock an “overweight” rating in a research note on Friday, August 1st. KeyCorp upped their target price on shares of Cloudflare from $210.00 to $235.00 and gave the stock an “overweight” rating in a research note on Friday, August 1st. Finally, JMP Securities upped their target price on shares of Cloudflare from $180.00 to $225.00 and gave the stock a “market outperform” rating in a research note on Monday, July 28th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $191.28.

Cloudflare Stock Performance

The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14. The stock’s fifty day moving average price is $210.27 and its 200-day moving average price is $171.81. The company has a market capitalization of $75.60 billion, a P/E ratio of -638.08 and a beta of 1.99.

Cloudflare (NYSE:NET) last issued its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.03. The company had revenue of $512.32 million for the quarter, compared to analysts’ expectations of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. Cloudflare’s quarterly revenue was up 27.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.20 EPS. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, research analysts anticipate that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction dated Thursday, September 25th. The shares were sold at an average price of $212.49, for a total value of $5,448,456.09. Following the transaction, the insider directly owned 14,575 shares of the company’s stock, valued at $3,097,041.75. This represents a 63.76% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the stock in a transaction dated Thursday, September 11th. The shares were sold at an average price of $226.46, for a total transaction of $11,862,880.64. The disclosure for this sale can be found here. Insiders sold 727,020 shares of company stock worth $146,028,939 in the last 90 days. 10.89% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Daymark Wealth Partners LLC raised its holdings in Cloudflare by 1.1% in the 2nd quarter. Daymark Wealth Partners LLC now owns 4,556 shares of the company’s stock valued at $892,000 after acquiring an additional 51 shares during the period. Huntington National Bank raised its holdings in Cloudflare by 22.8% in the 2nd quarter. Huntington National Bank now owns 280 shares of the company’s stock valued at $55,000 after acquiring an additional 52 shares during the period. ORG Partners LLC raised its holdings in Cloudflare by 11.9% in the 2nd quarter. ORG Partners LLC now owns 498 shares of the company’s stock valued at $92,000 after acquiring an additional 53 shares during the period. Fiduciary Planning LLC grew its position in shares of Cloudflare by 3.0% during the 2nd quarter. Fiduciary Planning LLC now owns 1,854 shares of the company’s stock worth $363,000 after purchasing an additional 54 shares in the last quarter. Finally, Ossiam grew its position in shares of Cloudflare by 2.0% during the 2nd quarter. Ossiam now owns 3,343 shares of the company’s stock worth $655,000 after purchasing an additional 64 shares in the last quarter. 82.68% of the stock is owned by institutional investors.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.