Cloudflare (NYSE:NET) Downgraded by Wall Street Zen to “Hold”

Posted by Francis Steltz on Oct 26th, 2026

Wall Street Zen lowered shares of Cloudflare (NYSE:NET – Free Report) from a buy rating to a hold rating in a research report released on Sunday,Wall Street Zen reports.

Several other analysts have also commented on the company. Jefferies Financial Group set a $350.00 price objective on Cloudflare in a report on Friday, August 7th. TD Cowen increased their target price on Cloudflare from $355.00 to $375.00 and gave the company a “buy” rating in a report on Tuesday, October 13th. The Goldman Sachs Group restated a “buy” rating and set a $389.00 price target on shares of Cloudflare in a research note on Friday, August 7th. Susquehanna upped their price target on shares of Cloudflare from $200.00 to $300.00 and gave the company a “neutral” rating in a research report on Monday, August 10th. Finally, UBS Group increased their price objective on shares of Cloudflare from $250.00 to $350.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have issued a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, Cloudflare has an average rating of “Moderate Buy” and a consensus price target of $330.59.

View Our Latest Stock Analysis on NET

Cloudflare Trading Down 0.0%

NYSE:NET opened at $325.68 on Friday. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare has a 12 month low of $158.83 and a 12 month high of $370.35. The company has a market cap of $115.12 billion, a PE ratio of -561.52, a price-to-earnings-growth ratio of 259.07 and a beta of 1.65. The company has a 50 day simple moving average of $318.54 and a two-hundred day simple moving average of $267.87.

Cloudflare (NYSE:NET – Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.02. The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The company’s quarterly revenue was up 35.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.21 EPS. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Research analysts forecast that Cloudflare will post 0.03 earnings per share for the current year.

Insider Transactions at Cloudflare

In related news, CFO Thomas Seifert sold 12,500 shares of the firm’s stock in a transaction on Monday, October 19th. The stock was sold at an average price of $299.59, for a total value of $3,744,875.00. Following the transaction, the chief financial officer directly owned 104,958 shares of the company’s stock, valued at approximately $31,444,367.22. This trade represents a 10.64% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of Cloudflare stock in a transaction on Monday, October 19th. The shares were sold at an average price of $304.40, for a total value of $1,522,000.00. Following the transaction, the director owned 868,073 shares in the company, valued at $264,241,421.20. This trade represents a 0.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 476,339 shares of company stock worth $143,439,267 in the last three months. Corporate insiders own 10.66% of the company’s stock.

Institutional Trading of Cloudflare

A number of hedge funds and other institutional investors have recently bought and sold shares of NET. Apollon Wealth Management LLC lifted its position in shares of Cloudflare by 37.4% during the 3rd quarter. Apollon Wealth Management LLC now owns 6,007 shares of the company’s stock valued at $2,086,000 after buying an additional 1,635 shares in the last quarter. Kingswood Wealth Advisors LLC grew its stake in shares of Cloudflare by 2.8% during the 3rd quarter. Kingswood Wealth Advisors LLC now owns 4,613 shares of the company’s stock valued at $1,602,000 after acquiring an additional 126 shares during the period. Sigma Planning Corp grew its stake in shares of Cloudflare by 55.7% during the 3rd quarter. Sigma Planning Corp now owns 6,194 shares of the company’s stock valued at $2,145,000 after acquiring an additional 2,216 shares during the period. Financial Management Professionals Inc. grew its stake in shares of Cloudflare by 6.1% during the 3rd quarter. Financial Management Professionals Inc. now owns 623 shares of the company’s stock valued at $216,000 after acquiring an additional 36 shares during the period. Finally, Revolve Wealth Partners LLC purchased a new stake in Cloudflare in the 3rd quarter worth approximately $297,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

Positive Sentiment: Cloud stocks are rebounding: Cloudflare is benefiting from a broader recovery in cloud-software shares, with investors especially favoring companies that secure and keep applications running. Cloudflare Climbs as Cloud Stocks Rebound
Positive Sentiment: PHP security crisis highlights demand for Cloudflare: The company reported millions of attempted exploits after critical PHP vulnerabilities were disclosed. The heightened threat environment reinforces the need for Cloudflare’s web-security and protective services and has helped lift cybersecurity stocks. Cloudflare sees millions of exploit attempts after PHP disclosure
Positive Sentiment: Growth outlook remains attractive to some investors: Brown Advisory cited accelerating growth at Cloudflare, while a bullish analyst view argued that AI-driven traffic, bot verification, and enterprise adoption could provide substantial long-term expansion opportunities. Brown Advisory Sees Accelerating Growth at Cloudflare
Neutral Sentiment: Valuation is a key risk: Cloudflare’s multiyear share-price gains have significantly outpaced its sales growth, leaving the stock valued at a rich sales premium. That can support momentum but makes the shares sensitive to any slowdown in growth or weaker guidance. Cloudflare Stock May Trade at a Rich Sales Premium
Negative Sentiment: Execution concerns remain: Commentary has pointed to potentially misleading AI-agent enthusiasm, declining gross margins, and a reported workforce reduction, factors that could temper the bullish narrative if they pressure profitability or revenue quality. PHP Flaws Set Off Cyber Alarm

Cloudflare Company Profile

(Get Free Report)

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.