Cloudflare (NYSE:NET) Downgraded by Zacks Research to Strong Sell

Zacks Research downgraded shares of Cloudflare (NYSE:NET) from a hold rating to a strong sell rating in a research report released on Wednesday,Zacks reports.

A number of other research firms have also recently commented on NET. Benchmark cut shares of Cloudflare to an “underperform” rating in a research report on Tuesday, July 7th. KeyCorp boosted their price objective on shares of Cloudflare from $300.00 to $375.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Deutsche Bank Aktiengesellschaft raised shares of Cloudflare to a “buy” rating in a research report on Tuesday, July 7th. BTIG Research raised their target price on Cloudflare from $382.00 to $413.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. Finally, Citizens Jmp restated a “market outperform” rating and set a $394.00 target price on shares of Cloudflare in a research note on Monday, August 31st. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have assigned a Hold rating and five have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $330.59.

Cloudflare Trading Down 2.9%

Shares of NET opened at $314.76 on Wednesday. The stock’s 50-day moving average is $319.61 and its two-hundred day moving average is $263.78. The stock has a market cap of $111.26 billion, a PE ratio of -542.69, a P/E/G ratio of 257.95 and a beta of 1.65. Cloudflare has a 12 month low of $158.83 and a 12 month high of $370.35. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.

Cloudflare (NYSE:NET) last issued its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The company had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same quarter in the prior year, the business earned $0.21 earnings per share. The company’s revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Equities analysts forecast that Cloudflare will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Cloudflare

In related news, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction on 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 completion of the sale, the insider owned 69,775 shares in the company, valued at approximately $24,301,934.75. The trade was a 32.11% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the company’s stock in a transaction on Tuesday, September 22nd. The shares were sold at an average price of $353.15, for a total transaction of $1,765,750.00. Following the completion of the sale, the director directly owned 873,073 shares in the company, valued at $308,325,729.95. This represents a 0.57% decrease in their ownership of the stock. 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 458,839 shares of company stock worth $138,172,392 over the last three months. 10.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Cloudflare

Several hedge funds and other institutional investors have recently modified their holdings of the stock. GK Wealth Management LLC bought a new position in shares of Cloudflare during the third quarter worth about $25,000. Cornerstone Financial Management LLC grew its stake in Cloudflare by 65.3% in the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock worth $29,000 after purchasing an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. acquired a new position in Cloudflare in the second quarter worth about $30,000. CX Institutional increased its holdings in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after buying an additional 44 shares during the last quarter. Finally, Cape Investment Advisory Inc. acquired a new stake in Cloudflare during the second quarter valued at approximately $33,000. Institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.