Cloudflare (NYSE:NET) Upgraded by Zacks Research to Strong-Buy Rating

Zacks Research upgraded shares of Cloudflare (NYSE:NET) from a hold rating to a strong-buy rating in a research note released on Monday morning,Zacks.com reports.

NET has been the subject of several other research reports. Scotiabank raised Cloudflare from a “sector perform” rating to a “sector outperform” rating and raised their price target for the stock from $225.00 to $300.00 in a report on Tuesday, July 7th. Barclays upped their price objective on shares of Cloudflare from $250.00 to $300.00 and gave the company an “overweight” rating in a report on Monday, July 13th. TD Cowen lifted their target price on shares of Cloudflare from $265.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, July 13th. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a “buy” rating in a research note on Tuesday, July 7th. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $136.00 price target on shares of Cloudflare in a research note on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have issued a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $258.59.

Cloudflare Stock Performance

Shares of NET opened at $272.50 on Monday. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The firm has a market cap of $96.32 billion, a PE ratio of -1,090.02, a P/E/G ratio of 277.66 and a beta of 1.67. Cloudflare has a 12 month low of $158.83 and a 12 month high of $291.00. The stock has a fifty day moving average price of $239.64 and a 200-day moving average price of $211.05.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm had revenue of $639.75 million for the quarter, compared to the consensus estimate of $620.83 million. During the same period in the previous year, the business earned $0.16 EPS. The firm’s revenue for the quarter was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. Equities research analysts predict that Cloudflare will post 0.02 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In related news, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $219.11, for a total value of $5,618,199.51. Following the transaction, the insider owned 47,425 shares in the company, valued at approximately $10,391,291.75. This represents a 35.09% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the firm’s stock in a transaction that occurred on Monday, July 6th. The stock was sold at an average price of $247.28, for a total transaction of $623,145.60. Following the transaction, the director directly owned 494,909 shares of the company’s stock, valued at $122,381,097.52. This represents a 0.51% decrease in their ownership of the stock. 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 564,903 shares of company stock valued at $127,356,194 over the last quarter. Company insiders own 10.66% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in NET. CX Institutional boosted its holdings in Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after purchasing an additional 44 shares during the last quarter. Quadrant Private Wealth Management LLC increased its holdings in shares of Cloudflare by 3.2% during the 1st quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company’s stock worth $341,000 after buying an additional 51 shares during the last quarter. Essential Partners LLC increased its holdings in shares of Cloudflare by 14.5% during the 1st quarter. Essential Partners LLC now owns 402 shares of the company’s stock worth $83,000 after buying an additional 51 shares during the last quarter. Jamison Private Wealth Management Inc. raised its position in shares of Cloudflare by 2.6% during the 1st quarter. Jamison Private Wealth Management Inc. now owns 2,064 shares of the company’s stock valued at $426,000 after buying an additional 52 shares during the period. Finally, Revisor Wealth Management LLC grew its position in Cloudflare by 4.0% in the first quarter. Revisor Wealth Management LLC now owns 1,390 shares of the company’s stock worth $287,000 after acquiring an additional 53 shares during the period. Hedge funds and other institutional investors own 82.68% of the company’s stock.

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.