Cloudflare (NYSE:NET) Reaches New 1-Year High – Here’s Why

Shares of Cloudflare, Inc. (NYSE:NET) hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $326.08 and last traded at $325.2770, with a volume of 1055098 shares. The stock had previously closed at $311.45.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Needham & Company LLC upped their target price on Cloudflare from $280.00 to $380.00 and gave the company a “buy” rating in a report on Friday, August 7th. Mizuho raised their target price on shares of Cloudflare from $260.00 to $310.00 and gave the company an “outperform” rating in a report on Wednesday, July 15th. Truist Financial lifted their target price on shares of Cloudflare from $300.00 to $350.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Citizens Jmp upped their price target on shares of Cloudflare from $330.00 to $394.00 and gave the company a “market outperform” rating in a report on Friday, August 7th. Finally, Zacks Research raised shares of Cloudflare from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Cloudflare has an average rating of “Moderate Buy” and an average target price of $320.19.

Cloudflare Price Performance

The company’s 50 day simple moving average is $261.98 and its 200 day simple moving average is $223.72. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The stock has a market capitalization of $111.56 billion, a PE ratio of -544.19, a PEG ratio of 204.57 and a beta of 1.65.

Cloudflare (NYSE:NET) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share (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 analysts’ expectations of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The business’s revenue was up 35.9% on a year-over-year basis. During the same quarter last year, the firm earned $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. On average, equities analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Insider Activity

In related news, insider Michelle Zatlyn sold 35,080 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the transaction, the insider owned 47,425 shares of the company’s stock, valued at approximately $10,148,001.50. This represents a 42.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible 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 the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the transaction, the chief financial officer directly owned 113,790 shares in the company, valued at approximately $34,171,137. This represents a 32.58% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 748,719 shares of company stock valued at $183,992,198 in the last 90 days. 10.66% of the stock is currently owned by insiders.

Institutional Trading of Cloudflare

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in Cloudflare by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock valued at $6,389,167,000 after acquiring an additional 90,397 shares during the last quarter. Geode Capital Management LLC raised its holdings in shares of Cloudflare by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock worth $1,184,044,000 after purchasing an additional 241,981 shares during the period. Jennison Associates LLC lifted its stake in shares of Cloudflare by 135.8% in the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock valued at $906,758,000 after purchasing an additional 2,530,872 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of Cloudflare by 1.6% during the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock worth $792,377,000 after purchasing an additional 63,198 shares during the period. Finally, Invesco Ltd. grew its holdings in shares of Cloudflare by 1.3% during the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after purchasing an additional 49,485 shares during the period. 82.68% of the stock is currently owned by institutional investors and hedge funds.

About Cloudflare

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.