Scotiabank Has Lowered Expectations for Cloudflare (NYSE:NET) Stock Price

Cloudflare (NYSE:NET) had its price objective lowered by equities research analysts at Scotiabank from $255.00 to $225.00 in a research report issued on Wednesday,Benzinga reports. The brokerage currently has a “sector perform” rating on the stock. Scotiabank’s price objective indicates a potential upside of 24.70% from the company’s current price.

Several other research firms have also issued reports on NET. Royal Bank Of Canada restated an “outperform” rating on shares of Cloudflare in a report on Tuesday, January 27th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cloudflare in a research report on Wednesday, January 21st. Needham & Company LLC decreased their price target on shares of Cloudflare from $285.00 to $250.00 and set a “buy” rating for the company in a report on Wednesday. UBS Group restated a “neutral” rating and set a $220.00 target price on shares of Cloudflare in a research report on Wednesday. Finally, Guggenheim reissued a “sell” rating on shares of Cloudflare in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $232.57.

Cloudflare Stock Up 3.9%

Shares of NET stock opened at $180.44 on Wednesday. The company has a market capitalization of $63.20 billion, a price-to-earnings ratio of -601.47, a PEG ratio of 150.60 and a beta of 1.97. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.04 and a quick ratio of 2.04. The company’s fifty day moving average price is $191.02 and its 200-day moving average price is $205.03. Cloudflare has a one year low of $89.42 and a one year high of $260.00.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.01. Cloudflare had a negative return on equity of 6.54% and a negative net margin of 5.12%.The business had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. During the same period in the prior year, the company posted $0.19 EPS. The firm’s revenue for the quarter was up 33.6% compared to the same quarter last year. Sell-side analysts expect that Cloudflare will post -0.11 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Michelle Zatlyn sold 35,099 shares of Cloudflare stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $199.26, for a total value of $6,993,826.74. Following the completion of the transaction, the insider directly owned 24,555 shares in the company, valued at approximately $4,892,829.30. This trade represents a 58.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Thomas J. Seifert sold 41,555 shares of the firm’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $194.18, for a total value of $8,069,149.90. Following the completion of the sale, the chief financial officer owned 137,486 shares in the company, valued at approximately $26,697,031.48. This represents a 23.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 630,827 shares of company stock worth $124,436,992 over the last ninety days. Corporate insiders own 10.89% of the company’s stock.

Institutional Trading of Cloudflare

Large investors have recently bought and sold shares of the business. Reliant Investment Partners LLC boosted its holdings in shares of Cloudflare by 1.5% in the third quarter. Reliant Investment Partners LLC now owns 3,316 shares of the company’s stock valued at $718,000 after acquiring an additional 50 shares in the last quarter. Daymark Wealth Partners LLC lifted its stake in shares of Cloudflare by 1.1% during the second quarter. Daymark Wealth Partners LLC now owns 4,556 shares of the company’s stock valued at $892,000 after buying an additional 51 shares during the period. Frank Rimerman Advisors LLC boosted its stake in Cloudflare by 1.8% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 2,821 shares of the company’s stock worth $605,000 after buying an additional 51 shares during the last quarter. Huntington National Bank grew its stake in shares of Cloudflare by 22.8% during the 2nd quarter. Huntington National Bank now owns 280 shares of the company’s stock valued at $55,000 after buying an additional 52 shares during the period. Finally, Fiduciary Planning LLC increased its position in Cloudflare by 3.0% during the 2nd quarter. Fiduciary Planning LLC now owns 1,854 shares of the company’s stock worth $363,000 after purchasing an additional 54 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Quarterly beats — Cloudflare reported Q4 revenue of $614.5M and EPS $0.28, topping consensus and showing ~34% YoY revenue growth; management framed the quarter as a very strong finish. Read More.
• Positive Sentiment: Large enterprise traction — management disclosed the largest annual contract ever (avg. $42.5M/year) and ~50% growth in new ACV, signaling stronger enterprise sales and sticky recurring revenue. Read More.
• Positive Sentiment: Raised outlook and AI-driven demand — Cloudflare outlined a $2.795B 2026 revenue target and said AI adoption is accelerating demand for its connectivity/cloud services, with management forecasting FY and Q1 sales above Street estimates. Read More. Read More.
• Neutral Sentiment: Conference materials and call available — investors can review the full earnings slide deck and transcript for detail on margins, unit economics and ACV cadence. Read More. Read More.
• Neutral Sentiment: Analyst/coverage notes — coverage pieces highlight Cloudflare’s resilience in an AI-driven software market and its streak of EPS beats, which supports a growth narrative but valuation and profitability remain focal points for investors. Read More.
• Negative Sentiment: Institutional selling — Alfreton Capital cut its Cloudflare stake by ~55% during the period, reducing a previously large holding, which could signal some profit-taking or portfolio reshuffling by an investor. Read More.

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.