Cloudflare (NYSE:NET) Sees Large Volume Increase – Should You Buy?

Shares of Cloudflare, Inc. (NYSE:NET) saw an uptick in trading volume on Friday . 4,839,099 shares traded hands during mid-day trading, an increase of 5% from the previous session’s volume of 4,615,764 shares.The stock last traded at $169.17 and had previously closed at $193.05.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Virtru launched object‑level data governance for Cloudflare R2, improving R2’s compliance/security appeal to enterprise customers and supporting incremental product monetization. Virtru brings object level governance to R2
• Positive Sentiment: Analyst commentary (e.g., TD Cowen and other brokers) continues to highlight Cloudflare’s edge‑computing and security positioning, strong top‑line momentum and improved cash metrics — supportive for medium/long‑term valuation. Are Cloudflare’s AI security prospects brighter?
• Neutral Sentiment: Some market writeups list NET among names “holding up” versus peers or as potential dip buys; useful for momentum traders but not new company fundamentals. Five stocks not breaking down
• Neutral Sentiment: Quant/market‑structure notes flag no single fresh catalyst for the drop — pointing instead to valuation sensitivity, crowded long positioning and broad risk‑off dynamics; this implies the move may be amplified by flows rather than fundamentals. QuiverQuant analysis
• Negative Sentiment: Sectorwide “AI infrastructure” sell‑off and fears that advanced AI/agent developments will compress future SaaS multiples have put pressure on software names including Cloudflare. AI infrastructure sell‑off
• Negative Sentiment: Cloudflare was called out as a leader in the broader software sell‑off as AI fears hit the sector, extending downward pressure on NET. Cloudflare leads software sell‑off
• Negative Sentiment: Insider selling: CEO Matthew Prince executed several Rule 10b5‑1 sales (recent filings show ~104k shares across April transactions), which—despite being planned—can create short‑term selling pressure and negative headlines. SEC Form 4
• Negative Sentiment: Macroeconomic/geopolitical volatility amplified selling: spikes in risk aversion tied to a reported ceasefire breach raised session‑wide volatility and hit high‑beta software stocks. Market volatility from geopolitical news

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on NET. BTIG Research boosted their price objective on Cloudflare from $199.00 to $243.00 and gave the company a “buy” rating in a report on Wednesday, February 11th. Robert W. Baird set a $260.00 price objective on Cloudflare and gave the company an “outperform” rating in a report on Wednesday, February 11th. Morgan Stanley set a $245.00 price objective on Cloudflare in a report on Wednesday, February 11th. TD Cowen reissued a “buy” rating on shares of Cloudflare in a report on Tuesday, January 27th. Finally, Cantor Fitzgerald reissued a “neutral” rating and issued a $224.00 price objective on shares of Cloudflare in a report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $233.38.

Cloudflare Stock Performance

The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. The stock has a 50 day simple moving average of $194.79 and a 200 day simple moving average of $202.42. The company has a market capitalization of $59.67 billion, a price-to-earnings ratio of -586.90 and a beta of 1.87.

Cloudflare (NYSE:NET) last issued its earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The company had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. During the same period in the previous year, the firm posted $0.19 earnings per share. Cloudflare’s quarterly revenue was up 33.6% compared to the same quarter last year. As a group, analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 35,080 shares of the business’s stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $187.39, for a total transaction of $6,573,641.20. Following the completion of the transaction, the insider directly owned 34,514 shares in the company, valued at approximately $6,467,578.46. The trade was a 50.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Thomas J. Seifert sold 41,557 shares of the business’s stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $185.04, for a total value of $7,689,707.28. Following the transaction, the chief financial officer owned 85,452 shares of the company’s stock, valued at approximately $15,812,038.08. This represents a 32.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 624,247 shares of company stock worth $121,102,467. Company insiders own 10.89% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Reliant Investment Partners LLC boosted its position in shares of Cloudflare by 1.5% during the third quarter. Reliant Investment Partners LLC now owns 3,316 shares of the company’s stock worth $718,000 after buying an additional 50 shares during the period. Frank Rimerman Advisors LLC raised its holdings in Cloudflare by 1.8% during the third quarter. Frank Rimerman Advisors LLC now owns 2,821 shares of the company’s stock worth $605,000 after purchasing an additional 51 shares in the last quarter. IMA Advisory Services Inc. raised its holdings in Cloudflare by 4.5% during the fourth quarter. IMA Advisory Services Inc. now owns 1,290 shares of the company’s stock worth $254,000 after purchasing an additional 55 shares in the last quarter. Brown Brothers Harriman & Co. raised its holdings in Cloudflare by 55.4% during the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company’s stock worth $34,000 after purchasing an additional 56 shares in the last quarter. Finally, Silver Oak Securities Incorporated raised its holdings in Cloudflare by 5.5% during the fourth quarter. Silver Oak Securities Incorporated now owns 1,090 shares of the company’s stock worth $218,000 after purchasing an additional 57 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

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.