Wall Street Zen Downgrades Cloudflare (NYSE:NET) to Hold

by · The Cerbat Gem

Cloudflare (NYSE:NET – Get Free Report) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Sunday, Wall Street Zen reports.

Several other brokerages have also recently issued reports on NET. New Street Research restated a “market outperform” rating on shares of Cloudflare in a report on Monday, June 15th. Mizuho lifted their price target on Cloudflare from $260.00 to $310.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. KeyCorp boosted their price target on shares of Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Sanford C. Bernstein reissued a “market perform” rating and issued a $136.00 price objective on shares of Cloudflare in a report on Wednesday, June 10th. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a “buy” rating in a research report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Cloudflare presently has a consensus rating of “Moderate Buy” and an average price target of $320.19.

Read Our Latest Stock Analysis on NET

Cloudflare Trading Down 0.0%

NET opened at $278.88 on Friday. The firm has a market capitalization of $98.58 billion, a price-to-earnings ratio of -480.83, a price-to-earnings-growth ratio of 228.00 and a beta of 1.66. The company’s 50 day simple moving average is $281.10 and its two-hundred day simple moving average is $236.01. Cloudflare has a 1-year low of $158.83 and a 1-year high of $332.22. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.

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

Insider Activity

In related news, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $294.63, for a total value of $9,723,673.89. Following the completion of the transaction, the insider owned 69,775 shares in the company, valued at approximately $20,557,808.25. The trade was a 32.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 640,238 shares of company stock valued at $168,400,647. 10.66% of the stock is currently owned by company insiders.

Institutional Trading of Cloudflare

Large investors have recently modified their holdings of the stock. Empowered Funds LLC increased its holdings in Cloudflare by 34.2% during the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock worth $750,000 after purchasing an additional 1,696 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Cloudflare during the second quarter worth about $424,000. Cerity Partners LLC increased its stake in shares of Cloudflare by 30.1% during the second quarter. Cerity Partners LLC now owns 27,531 shares of the company’s stock worth $5,391,000 after buying an additional 6,363 shares during the period. Sei Investments Co. increased its stake in shares of Cloudflare by 40.1% during the second quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock worth $64,432,000 after buying an additional 94,112 shares during the period. Finally, The Manufacturers Life Insurance Company raised its holdings in Cloudflare by 14.6% in the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company’s stock valued at $3,224,000 after acquiring an additional 2,093 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

(Get Free Report)

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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