Cloudflare (NYSE:NET) Stock Price Down 5.9% – Here’s What Happened

Shares of Cloudflare, Inc. (NYSE:NET) dropped 5.9% during mid-day trading on Friday. The stock traded as low as $297.39 and last traded at $297.7550. Approximately 346,211 shares traded hands during trading, a decline of 91% from the average session volume of 4,044,874 shares. The stock had previously closed at $316.32.

Analysts Set New Price Targets

NET has been the subject of a number of recent analyst reports. BTIG Research raised their price target on Cloudflare from $382.00 to $413.00 and gave the company a “buy” rating in a report on Tuesday, October 6th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $389.00 price target on shares of Cloudflare in a report on Friday, August 7th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $394.00 price target on shares of Cloudflare in a report on Monday, August 31st. Scotiabank upped their price target on shares of Cloudflare from $300.00 to $390.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Finally, Cantor Fitzgerald reissued a “neutral” rating and set a $340.00 price objective on shares of Cloudflare in a report on Monday, October 5th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $330.59.

Cloudflare Stock Performance

The stock has a market cap of $103.39 billion, a price-to-earnings ratio of -506.17, a P/E/G ratio of 257.95 and a beta of 1.65. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The firm has a fifty day simple moving average of $319.61 and a 200-day simple moving average of $263.78.

Cloudflare (NYSE:NET) last released its earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02. The company had revenue of $696.06 million during the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The business’s revenue for the quarter was up 35.9% on a year-over-year basis. During the same period last year, the firm 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. Analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Insider Activity

In related news, CFO Thomas J. Seifert sold 55,000 shares of Cloudflare stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total value of $16,516,500.00. Following the completion of the sale, the chief financial officer directly owned 113,790 shares in the company, valued at $34,171,137. This trade represents a 32.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,383 shares of the business’s stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $283.42, for a total value of $14,846,389.86. 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 have sold 458,839 shares of company stock valued at $138,172,392 over the last 90 days. 10.66% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently modified their holdings of NET. GK Wealth Management LLC acquired a new stake in Cloudflare during the 3rd quarter worth $25,000. Cornerstone Financial Management LLC raised its position in shares of Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after acquiring an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new stake in shares of Cloudflare during the 2nd quarter valued at $30,000. CX Institutional raised its position in shares of Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after acquiring an additional 44 shares during the last quarter. Finally, Cape Investment Advisory Inc. acquired a new position in shares of Cloudflare in the 2nd quarter valued at $33,000. 82.68% of the stock is owned by institutional investors.

Cloudflare Company Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.