Cloudflare (NYSE:NET) Trading Down 5.1% – Should You Sell?

Cloudflare, Inc. (NYSE:NET) shares dropped 5.1% during trading on Friday . The stock traded as low as $319.59 and last traded at $316.9730. Approximately 391,074 shares traded hands during trading, a decline of 91% from the average session volume of 4,167,579 shares. The stock had previously closed at $333.94.

Wall Street Analysts Forecast Growth

A number of analysts have commented on the company. Royal Bank Of Canada lifted their target price on Cloudflare from $290.00 to $346.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Guggenheim upped their price target on Cloudflare from $140.00 to $160.00 and gave the company a “sell” rating in a report on Friday, August 7th. Wells Fargo & Company increased their price objective on Cloudflare from $300.00 to $380.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Robert W. Baird set a $330.00 price objective on Cloudflare in a report on Friday, August 7th. Finally, Susquehanna boosted their target price on Cloudflare from $200.00 to $300.00 and gave the stock a “neutral” rating in a research report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $321.85.

Cloudflare Stock Performance

The business’s fifty day moving average is $290.95 and its 200-day moving average is $243.97. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. The company has a market cap of $113.12 billion, a PE ratio of -551.81, a P/E/G ratio of 258.21 and a beta of 1.66.

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

Insider Activity at Cloudflare

In related news, insider Michelle Zatlyn sold 33,003 shares of the business’s stock in a transaction on Wednesday, August 19th. The stock was sold at an average price of $294.63, for a total transaction of $9,723,673.89. Following the completion of the transaction, the insider owned 69,775 shares in the company, valued at $20,557,808.25. The trade was a 32.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 55,000 shares of Cloudflare stock in a transaction on 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 sale, the chief financial officer owned 113,790 shares of the company’s stock, valued at approximately $34,171,137. This trade represents a 32.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 647,442 shares of company stock worth $173,812,433. Insiders own 10.66% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. CX Institutional grew its position in Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after acquiring an additional 44 shares during the last quarter. Wealth Architects LLC increased its stake in Cloudflare by 4.6% in the 2nd quarter. Wealth Architects LLC now owns 1,022 shares of the company’s stock worth $251,000 after purchasing an additional 45 shares during the period. Cornerstone Financial Management LLC lifted its position in Cloudflare by 65.3% in the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares during the last quarter. Forum Financial Management LP lifted its position in Cloudflare by 3.5% in the second quarter. Forum Financial Management LP now owns 1,498 shares of the company’s stock valued at $367,000 after purchasing an additional 50 shares during the last quarter. Finally, Quadrant Private Wealth Management LLC boosted its stake in shares of Cloudflare by 3.2% during the first quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company’s stock valued at $341,000 after purchasing an additional 51 shares during the period. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Company Profile

Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.

The company’s offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.