Cloudflare (NYSE:NET) Trading Down 3.3% – Here’s Why

Cloudflare, Inc. (NYSE:NET)’s stock price dropped 3.3% during mid-day trading on Friday . The company traded as low as $217.59 and last traded at $217.22. Approximately 190,818 shares changed hands during trading, a decline of 94% from the average daily volume of 3,393,755 shares. The stock had previously closed at $224.56.

Wall Street Analyst Weigh In

NET has been the topic of a number of analyst reports. Mizuho increased their target price on shares of Cloudflare from $220.00 to $240.00 and gave the stock an “outperform” rating in a research report on Friday, August 1st. Wells Fargo & Company increased their target price on shares of Cloudflare from $225.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday, August 1st. Royal Bank Of Canada increased their target price on shares of Cloudflare from $210.00 to $228.00 and gave the stock an “outperform” rating in a research report on Friday, August 1st. KeyCorp increased their target price on shares of Cloudflare from $210.00 to $235.00 and gave the stock an “overweight” rating in a research report on Friday, August 1st. Finally, Cowen reiterated a “buy” rating on shares of Cloudflare in a research report on Monday, June 16th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $191.28.

Cloudflare Price Performance

The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. The firm has a market cap of $75.60 billion, a price-to-earnings ratio of -638.08 and a beta of 1.99. The company’s 50-day moving average is $210.27 and its 200-day moving average is $171.81.

Cloudflare (NYSE:NET) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.18 by $0.03. The business had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The firm’s revenue was up 27.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.20 EPS. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Equities research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity at Cloudflare

In related news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $184.58, for a total value of $9,669,038.72. Following the completion of the transaction, the chief executive officer owned 381,213 shares of the company’s stock, valued at $70,364,295.54. This represents a 12.08% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Michelle Zatlyn sold 35,100 shares of the stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $191.71, for a total transaction of $6,729,021.00. Following the completion of the transaction, the insider directly owned 14,575 shares of the company’s stock, valued at approximately $2,794,173.25. The trade was a 70.66% decrease in their position. The disclosure for this sale can be found here. Insiders sold 727,020 shares of company stock worth $146,028,939 in the last 90 days. 10.89% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cloudflare

Several large investors have recently modified their holdings of the business. GAMMA Investing LLC raised its stake in shares of Cloudflare by 10.6% during the third quarter. GAMMA Investing LLC now owns 1,329 shares of the company’s stock valued at $285,000 after acquiring an additional 127 shares during the last quarter. Corient Private Wealth LLC raised its stake in shares of Cloudflare by 37.7% during the second quarter. Corient Private Wealth LLC now owns 24,700 shares of the company’s stock valued at $4,837,000 after acquiring an additional 6,757 shares during the last quarter. CacheTech Inc. bought a new position in shares of Cloudflare during the second quarter valued at $204,000. Adams Wealth Management bought a new position in shares of Cloudflare during the second quarter valued at $204,000. Finally, Orion Porfolio Solutions LLC raised its stake in shares of Cloudflare by 119.0% during the second quarter. Orion Porfolio Solutions LLC now owns 13,957 shares of the company’s stock valued at $2,733,000 after acquiring an additional 7,585 shares during the last quarter. Institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.