Needham & Company LLC Has Lowered Expectations for Cloudflare (NYSE:NET) Stock Price

Cloudflare (NYSE:NET) had its price objective reduced by research analysts at Needham & Company LLC from $285.00 to $250.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a “buy” rating on the stock. Needham & Company LLC’s price objective would indicate a potential upside of 38.55% from the stock’s current price.

A number of other equities analysts have also recently issued reports on NET. TD Cowen restated a “buy” rating on shares of Cloudflare in a research report on Tuesday, January 27th. Citizens Jmp boosted their price target on Cloudflare from $250.00 to $270.00 and gave the stock a “market outperform” rating in a research note on Friday, October 31st. Jefferies Financial Group restated a “hold” rating on shares of Cloudflare in a research note on Wednesday. Argus increased their price objective on shares of Cloudflare from $238.00 to $265.00 and gave the stock a “buy” rating in a research note on Monday, November 10th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Cloudflare in a research report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cloudflare has an average rating of “Moderate Buy” and an average price target of $235.93.

Cloudflare Stock Up 3.9%

Shares of NYSE NET opened at $180.44 on Wednesday. The business has a 50-day moving average of $191.02 and a 200-day moving average of $205.03. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 1.46. The firm 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. Cloudflare has a 12 month low of $89.42 and a 12 month high of $260.00.

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

Insiders Place Their Bets

In other news, insider Douglas James Kramer sold 3,000 shares of the firm’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $176.19, for a total transaction of $528,570.00. Following the transaction, the insider owned 101,101 shares in the company, valued at approximately $17,812,985.19. This trade represents a 2.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Matthew Prince sold 52,384 shares of the business’s stock in a transaction dated Thursday, January 8th. The shares were sold at an average price of $189.47, for a total transaction of $9,925,196.48. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 630,827 shares of company stock worth $124,436,992. 10.89% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cloudflare

A number of institutional investors and hedge funds have recently modified their holdings of NET. Vanguard Group Inc. raised its position in Cloudflare by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock worth $6,389,167,000 after buying an additional 90,397 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Cloudflare by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock worth $1,184,044,000 after buying an additional 241,981 shares in the last quarter. Invesco Ltd. grew its position in Cloudflare by 1.3% during the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after buying an additional 49,485 shares during the period. Norges Bank purchased a new position in Cloudflare in the fourth quarter valued at $718,316,000. Finally, Legal & General Group Plc boosted its stake in shares of Cloudflare by 4.9% during the 4th quarter. Legal & General Group Plc now owns 2,824,772 shares of the company’s stock worth $556,904,000 after acquiring an additional 131,127 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.

Key Cloudflare News

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.