Cloudflare (NYSE:NET) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Cloudflare (NYSE:NET) from a buy rating to a hold rating in a research report report published on Sunday,Wall Street Zen reports.

NET has been the topic of several other research reports. Robert W. Baird set a $330.00 target price on Cloudflare in a report on Friday, August 7th. Wells Fargo & Company upped their target price on Cloudflare from $300.00 to $380.00 and gave the stock an “overweight” rating in a research report on Friday, August 7th. Raymond James Financial began coverage on Cloudflare in a research note on Tuesday, July 7th. They set a “strong-buy” rating for the company. Citizens Jmp reiterated a “market outperform” rating and set a $394.00 price target on shares of Cloudflare in a research report on Monday, August 31st. Finally, Barclays boosted their price objective on Cloudflare from $355.00 to $400.00 and gave the stock an “overweight” rating in a research note on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $330.59.

Cloudflare Stock Performance

Shares of NYSE:NET opened at $328.37 on Friday. The firm’s 50 day moving average is $320.04 and its two-hundred day moving average is $246.03. Cloudflare has a 52 week low of $158.83 and a 52 week high of $370.35.

Cloudflare (NYSE:NET) last released its quarterly 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 for the quarter, compared to the consensus estimate of $664.66 million. The business’s quarterly revenue was up 35.9% on a year-over-year basis. During the same period last year, the firm posted $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. On average, sell-side analysts predict that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Thomas J. Seifert sold 55,000 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the completion of the sale, the chief financial officer directly owned 113,790 shares of the company’s stock, valued at $34,171,137. This trade represents a 32.58% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,383 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $283.42, for a total value of $14,846,389.86. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 476,339 shares of company stock worth $143,439,267. 10.66% of the stock is owned by insiders.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently modified their holdings of NET. Jennison Associates LLC boosted its position in shares of Cloudflare by 135.8% in the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock valued at $906,758,000 after purchasing an additional 2,530,872 shares during the period. Swedbank AB raised its holdings in Cloudflare by 697.5% during the 1st quarter. Swedbank AB now owns 927,606 shares of the company’s stock worth $191,402,000 after buying an additional 811,297 shares during the period. Alyeska Investment Group L.P. purchased a new stake in Cloudflare during the second quarter valued at about $75,595,000. USS Investment Management Ltd lifted its stake in Cloudflare by 452.3% during the first quarter. USS Investment Management Ltd now owns 296,322 shares of the company’s stock valued at $61,156,000 after buying an additional 242,668 shares in the last quarter. Finally, Pictet Asset Management Holding SA lifted its stake in Cloudflare by 17.6% during the first quarter. Pictet Asset Management Holding SA now owns 1,381,985 shares of the company’s stock valued at $284,900,000 after buying an additional 206,506 shares in the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Company Profile

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.