Cloudflare (NYSE:NET – Get Free Report) had its price objective boosted by equities researchers at Royal Bank Of Canada from $240.00 to $260.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Royal Bank Of Canada’s target price indicates a potential upside of 15.11% from the stock’s previous close.
A number of other research analysts also recently weighed in on the company. The Goldman Sachs Group downgraded Cloudflare from a “buy” rating to a “sell” rating in a research note on Wednesday, April 15th. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Cloudflare in a research note on Wednesday. Mizuho upped their price objective on Cloudflare from $235.00 to $260.00 and gave the company an “outperform” rating in a report on Wednesday. Zacks Research raised Cloudflare from a “strong sell” rating to a “hold” rating in a research note on Friday, March 13th. Finally, Wells Fargo & Company raised their target price on Cloudflare from $265.00 to $270.00 and gave the stock an “overweight” rating in a report on Wednesday, February 11th. Nineteen investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $243.36.
Read Our Latest Research Report on NET
Cloudflare Trading Down 4.3%
Cloudflare (NYSE:NET – Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The company had revenue of $639.76 million during the quarter, compared to analysts’ expectations of $620.83 million. During the same quarter in the previous year, the company earned $0.16 EPS. Cloudflare’s revenue was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.
Insider Activity
In related news, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the transaction, the insider directly owned 47,425 shares in the company, valued at approximately $10,148,001.50. This trade represents a 42.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction that occurred on Monday, April 6th. The shares were sold at an average price of $210.02, for a total value of $11,001,687.68. 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 527,784 shares of company stock valued at $111,803,817 over the last ninety days. 10.89% of the stock is owned by insiders.
Institutional Trading of Cloudflare
A number of hedge funds and other institutional investors have recently made changes to their positions in NET. FAS Wealth Partners Inc. lifted its position in shares of Cloudflare by 4.4% in the first quarter. FAS Wealth Partners Inc. now owns 6,671 shares of the company’s stock worth $1,376,000 after purchasing an additional 283 shares in the last quarter. Parallel Advisors LLC increased its stake in Cloudflare by 8.0% in the 1st quarter. Parallel Advisors LLC now owns 5,510 shares of the company’s stock valued at $1,137,000 after buying an additional 406 shares during the last quarter. Verus Capital Partners LLC increased its stake in Cloudflare by 7.5% in the 1st quarter. Verus Capital Partners LLC now owns 1,345 shares of the company’s stock valued at $278,000 after buying an additional 94 shares during the last quarter. Essential Partners LLC lifted its position in Cloudflare by 14.5% during the 1st quarter. Essential Partners LLC now owns 402 shares of the company’s stock worth $83,000 after buying an additional 51 shares in the last quarter. Finally, Janus Henderson Group PLC lifted its position in Cloudflare by 583.1% during the 1st quarter. Janus Henderson Group PLC now owns 241,367 shares of the company’s stock worth $49,805,000 after buying an additional 206,032 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.
Key Stories Impacting Cloudflare
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: BTIG raised its price target on Cloudflare to $269 from $243 and kept a buy rating, implying meaningful upside from recent trading levels.
- Positive Sentiment: Needham increased its target to $280 from $250 and reiterated a buy rating, signaling continued confidence in Cloudflare’s growth outlook.
- Positive Sentiment: Market commentary continues to frame Cloudflare as a beneficiary of agentic AI, supporting the investment case around its developer and AI platform expansion. Article: Market Favored Cloudflare (NET) as a Beneficiary of Agentic AI
- Neutral Sentiment: Cantor Fitzgerald raised its target to $230 from $224 but kept a neutral rating, suggesting the stock may be fairly valued after its recent run.
- Negative Sentiment: Investors are digesting Cloudflare’s AI-first restructuring plan, which includes cutting about 1,100 jobs and taking roughly $140 million to $150 million in restructuring charges, creating near-term execution and margin concerns. Article: Cloudflare Resets With AI Focus Job Cuts And New Class C Shares
- Negative Sentiment: Recent reporting also highlighted continued insider selling, including a June 8 sale by director Katrin Suder, which can weigh on sentiment even though it was made under a pre-arranged trading plan.
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.
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