Cloudflare (NYSE:NET) Shares Down 10.5% – Here’s Why

Cloudflare, Inc. (NYSE:NET) shares dropped 10.5% during mid-day trading on Friday. The stock traded as low as $280.44 and last traded at $277.6040. Approximately 1,595,049 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 4,014,815 shares. The stock had previously closed at $310.30.

Wall Street Analyst Weigh In

Several research firms have recently commented on NET. Barclays raised their target price on shares of Cloudflare from $355.00 to $400.00 and gave the stock an “overweight” rating in a research note on Monday, October 12th. Deutsche Bank Aktiengesellschaft raised shares of Cloudflare to a “buy” rating in a report on Tuesday, July 7th. Oppenheimer raised their price objective on shares of Cloudflare from $380.00 to $430.00 and gave the company an “outperform” rating in a research report on Friday, October 9th. Citizens Jmp reiterated a “market outperform” rating and set a $394.00 target price on shares of Cloudflare in a research report on Monday, August 31st. Finally, Needham & Company LLC increased their target price on Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a research note on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $333.70.

Cloudflare Stock Down 11.0%

The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The company has a market capitalization of $97.58 billion, a price-to-earnings ratio of -476.35, a price-to-earnings-growth ratio of 253.49 and a beta of 1.65. The firm’s 50-day simple moving average is $320.74 and its two-hundred day simple moving average is $247.33.

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

Insider Activity at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 33,003 shares of the company’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total value of $11,494,614.87. Following the sale, the insider owned 69,775 shares of the company’s stock, valued at $24,301,934.75. This represents a 32.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the transaction, the director directly owned 868,073 shares of the company’s stock, valued at approximately $264,241,421.20. This trade represents a 0.57% 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. In the last three months, insiders have sold 476,339 shares of company stock valued at $143,439,267. Insiders own 10.66% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Large investors have recently bought and sold shares of the stock. Provenance Wealth Advisors LLC acquired a new stake in shares of Cloudflare during the third quarter valued at $389,000. Integrity Alliance LLC. lifted its holdings in Cloudflare by 12.3% in the 3rd quarter. Integrity Alliance LLC. now owns 2,450 shares of the company’s stock valued at $851,000 after purchasing an additional 269 shares in the last quarter. IPG Investment Advisors LLC purchased a new position in Cloudflare in the 3rd quarter valued at about $301,000. Gerber Kawasaki Wealth & Investment Management lifted its holdings in Cloudflare by 17.1% in the 3rd quarter. Gerber Kawasaki Wealth & Investment Management now owns 3,253 shares of the company’s stock valued at $1,130,000 after purchasing an additional 476 shares in the last quarter. Finally, Signature Equity Partners LLC boosted its stake in shares of Cloudflare by 26.4% during the 3rd quarter. Signature Equity Partners LLC now owns 531 shares of the company’s stock worth $184,000 after purchasing an additional 111 shares during the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

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