Cloudflare (NYSE:NET) Stock Rating Raised to Outperform at Wolfe Research

Cloudflare (NYSE:NET) was upgraded by analysts at Wolfe Research from a “peer perform” rating to an “outperform” rating in a report released on Friday, Benzinga reports.

Several other equities research analysts also recently weighed in on NET. BTIG Research raised their price objective on Cloudflare from $382.00 to $413.00 and gave the company a “buy” rating in a report on Tuesday, October 6th. Susquehanna upped their target price on Cloudflare from $200.00 to $300.00 and gave the stock a “neutral” rating in a report on Monday, August 10th. Jefferies Financial Group set a $315.00 target price on Cloudflare and gave the stock a “hold” rating in a report on Friday. Sanford C. Bernstein increased their target price on Cloudflare from $181.00 to $245.00 and gave the company a “market perform” rating in a research report on Thursday, October 29th. Finally, JPMorgan Chase & Co. raised Cloudflare from a “neutral” rating to an “overweight” rating and set a $350.00 price target on the stock in a research note on Tuesday. Twenty-six equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $333.75.

Cloudflare Price Performance

NYSE:NET traded up $27.90 on Friday, hitting $272.41. The company had a trading volume of 4,786,839 shares, compared to its average volume of 4,050,470. Cloudflare has a 52 week low of $158.83 and a 52 week high of $370.35. 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 $96.29 billion, a price-to-earnings ratio of -469.37, a PEG ratio of 206.44 and a beta of 1.37. The firm has a 50 day moving average of $319.02 and a two-hundred day moving average of $249.31.

Cloudflare (NYSE:NET) last posted its earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.04. The firm had revenue of $782.51 million for the quarter, compared to analysts’ expectations of $737.16 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The company’s revenue was up 39.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.27 earnings per share. On average, research analysts anticipate that Cloudflare will post 0.03 earnings per share for the current year.

Insider Activity

In related news, insider Michelle Zatlyn sold 33,003 shares of the business’s stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total value of $9,156,022.29. Following the sale, the insider owned 69,775 shares of the company’s stock, valued at $19,357,678.25. The trade was a 32.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the firm’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $312.22, for a total value of $1,561,100.00. Following the transaction, the director directly owned 878,073 shares of the company’s stock, valued at approximately $274,151,952.06. This represents a 0.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 259,057 shares of company stock valued at $79,516,905. Insiders own 10.66% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

Institutional investors and hedge funds have recently made changes to their positions in the stock. GK Wealth Management LLC acquired a new position in shares of Cloudflare in the third quarter worth approximately $25,000. Toth Financial Advisory Corp acquired a new stake in Cloudflare during the 3rd quarter valued at approximately $36,000. Cornerstone Financial Management LLC increased its position in Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares during the period. C M Bidwell & Associates Ltd. bought a new position in Cloudflare during the 2nd quarter worth approximately $30,000. Finally, CX Institutional raised its holdings in Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after purchasing an additional 44 shares during 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: Third-quarter revenue rose 39.2% year over year to $782.5 million, above the roughly $737 million consensus, while adjusted EPS of $0.38 beat the $0.34 estimate. Cloudflare delivers strong Q3 numbers
• Positive Sentiment: The company raised its fourth-quarter 2026 outlook to EPS of $0.43 and revenue of $845–$846 million, versus consensus estimates of $0.31 and $797.9 million. Its FY 2026 guidance also moved above expectations: EPS of $1.35 versus $1.02 and revenue of about $3.0 billion versus $2.9 billion. Cloudflare raises full-year guidance
• Positive Sentiment: Enterprise momentum adds support to the growth outlook: customers spending more than $100,000 annually increased 25% year over year. Piper Sandler reaffirmed its Overweight rating and raised its price target to $337 from $333.
• Neutral Sentiment: Analyst views were mixed. Needham lowered its price target to $365 while keeping a Buy rating, and Cantor Fitzgerald cut its target to $310 and maintained Neutral.
• Negative Sentiment: Despite the growth and outlook, reports noted that gross margin declined, free cash flow grew more slowly than revenue, and the GAAP operating loss widened—potential concerns about profitability as Cloudflare scales. Cloudflare sales rise, but margins face pressure

Cloudflare Company Profile

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.