Cloudflare (NYSE:NET) Sets New 12-Month High – Should You Buy?

Cloudflare, Inc. (NYSE:NET) shares reached a new 52-week high on Monday . The stock traded as high as $220.75 and last traded at $217.85, with a volume of 770783 shares traded. The stock had previously closed at $214.43.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on NET. Needham & Company LLC upped their target price on shares of Cloudflare from $200.00 to $240.00 and gave the stock a “buy” rating in a report on Friday, August 1st. Robert W. Baird upped their price target on shares of Cloudflare from $148.00 to $175.00 and gave the stock a “neutral” rating in a research report on Friday, July 25th. Susquehanna cut their target price on shares of Cloudflare from $170.00 to $140.00 and set a “neutral” rating on the stock in a research report on Monday, May 12th. CICC Research upgraded shares of Cloudflare from a “market perform” rating to an “outperform” rating and set a $154.00 target price on the stock in a research report on Monday, May 12th. Finally, Piper Sandler upped their target price on shares of Cloudflare from $151.00 to $224.00 and gave the company a “neutral” rating in a research report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $191.28.

Cloudflare Stock Performance

The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $76.38 billion, a PE ratio of -644.96 and a beta of 1.95. The firm’s fifty day moving average is $198.18 and its 200-day moving average is $159.59.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.03. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The business had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. During the same period in the previous year, the company posted $0.20 earnings per share. The business’s revenue for the quarter was up 27.8% on a year-over-year basis. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, research analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction on Monday, August 25th. The stock was sold at an average price of $195.61, for a total transaction of $5,015,636.01. Following the sale, the insider owned 14,575 shares of the company’s stock, valued at $2,851,015.75. This trade represents a 63.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director John Graham-Cumming sold 10,215 shares of the firm’s stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $206.32, for a total value of $2,107,558.80. Following the completion of the sale, the director directly owned 495,191 shares in the company, valued at approximately $102,167,807.12. The trade was a 2.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 687,029 shares of company stock valued at $130,970,115 in the last three months. 10.89% of the stock is owned by insiders.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently modified their holdings of NET. Daymark Wealth Partners LLC boosted its position in Cloudflare by 1.1% during the 2nd quarter. Daymark Wealth Partners LLC now owns 4,556 shares of the company’s stock valued at $892,000 after purchasing an additional 51 shares during the period. Huntington National Bank grew its holdings in shares of Cloudflare by 22.8% during the second quarter. Huntington National Bank now owns 280 shares of the company’s stock valued at $55,000 after buying an additional 52 shares in the last quarter. ORG Partners LLC grew its holdings in shares of Cloudflare by 11.9% during the second quarter. ORG Partners LLC now owns 498 shares of the company’s stock valued at $92,000 after buying an additional 53 shares in the last quarter. Fiduciary Planning LLC grew its holdings in shares of Cloudflare by 3.0% during the second quarter. Fiduciary Planning LLC now owns 1,854 shares of the company’s stock valued at $363,000 after buying an additional 54 shares in the last quarter. Finally, Ossiam grew its holdings in shares of Cloudflare by 2.0% during the second quarter. Ossiam now owns 3,343 shares of the company’s stock valued at $655,000 after buying an additional 64 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.