Scotiabank Issues Pessimistic Forecast for Cloudflare (NYSE:NET) Stock Price

Cloudflare (NYSE:NET) had its target price cut by stock analysts at Scotiabank from $255.00 to $225.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a “sector perform” rating on the stock. Scotiabank’s price target would indicate a potential upside of 24.70% from the company’s current price.

Other equities research analysts have also recently issued research reports about the stock. Wolfe Research reiterated a “peer perform” rating on shares of Cloudflare in a research note on Monday, January 26th. Wall Street Zen raised shares of Cloudflare from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. TD Cowen reaffirmed a “buy” rating on shares of Cloudflare in a report on Tuesday, January 27th. Barclays began coverage on shares of Cloudflare in a research report on Tuesday, December 2nd. They set an “overweight” rating and a $235.00 target price on the stock. Finally, JMP Securities set a $270.00 price objective on Cloudflare in a research report on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Cloudflare has an average rating of “Moderate Buy” and an average target price of $232.57.

Cloudflare Stock Up 3.9%

Cloudflare stock opened at $180.44 on Wednesday. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. Cloudflare has a twelve month low of $89.42 and a twelve month high of $260.00. The firm’s 50 day moving average price is $191.02 and its two-hundred day moving average price is $205.03. The firm has a market cap of $63.20 billion, a PE ratio of -601.47, a P/E/G ratio of 150.60 and a beta of 1.97.

Cloudflare (NYSE:NET) last posted its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01. The firm had revenue of $614.51 million during the quarter, compared to analysts’ expectations of $591.67 million. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. The company’s revenue was up 33.6% compared to the same quarter last year. During the same period in the previous year, the company earned $0.19 earnings per share. On average, research analysts predict that Cloudflare will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $195.32, for a total value of $10,231,642.88. Following the completion of the sale, the chief executive officer owned 22,175 shares in the company, valued at $4,331,221. This trade represents a 70.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Michelle Zatlyn sold 35,099 shares of the firm’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $199.26, for a total value of $6,993,826.74. Following the sale, the insider directly owned 24,555 shares of the company’s stock, valued at $4,892,829.30. This represents a 58.84% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 630,827 shares of company stock worth $124,436,992. Insiders own 10.89% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NET. Physician Wealth Advisors Inc. raised its stake in Cloudflare by 693.3% during the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock worth $26,000 after buying an additional 104 shares during the last quarter. Wiser Advisor Group LLC purchased a new stake in Cloudflare in the 3rd quarter valued at about $26,000. Westside Investment Management Inc. boosted its stake in Cloudflare by 100.0% in the third quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock valued at $28,000 after acquiring an additional 65 shares during the last quarter. Twin Peaks Wealth Advisors LLC bought a new stake in Cloudflare in the 2nd quarter valued at about $29,000. Finally, ORG Wealth Partners LLC boosted its stake in Cloudflare by 101.4% in the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock worth $30,000 after purchasing an additional 70 shares during the period. 82.68% of the stock is owned by institutional investors.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Quarterly beats — Cloudflare reported Q4 revenue of $614.5M and EPS $0.28, topping consensus and showing ~34% YoY revenue growth; management framed the quarter as a very strong finish. Read More.
• Positive Sentiment: Large enterprise traction — management disclosed the largest annual contract ever (avg. $42.5M/year) and ~50% growth in new ACV, signaling stronger enterprise sales and sticky recurring revenue. Read More.
• Positive Sentiment: Raised outlook and AI-driven demand — Cloudflare outlined a $2.795B 2026 revenue target and said AI adoption is accelerating demand for its connectivity/cloud services, with management forecasting FY and Q1 sales above Street estimates. Read More. Read More.
• Neutral Sentiment: Conference materials and call available — investors can review the full earnings slide deck and transcript for detail on margins, unit economics and ACV cadence. Read More. Read More.
• Neutral Sentiment: Analyst/coverage notes — coverage pieces highlight Cloudflare’s resilience in an AI-driven software market and its streak of EPS beats, which supports a growth narrative but valuation and profitability remain focal points for investors. Read More.
• Negative Sentiment: Institutional selling — Alfreton Capital cut its Cloudflare stake by ~55% during the period, reducing a previously large holding, which could signal some profit-taking or portfolio reshuffling by an investor. Read More.

Cloudflare Company Profile

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.