Cloudflare (NYSE:NET) Price Target Cut to $360.00 by Analysts at Scotiabank

Cloudflare (NYSE:NET) had its price objective cut by Scotiabank from $390.00 to $360.00 in a research report report published on Friday morning,Benzinga reports. They currently have a sector outperform rating on the stock.

A number of other brokerages have also issued reports on NET. Morgan Stanley initiated coverage on shares of Cloudflare in a research note on Tuesday. They set an “overweight” rating on the stock. Wells Fargo & Company raised their price objective on shares of Cloudflare from $380.00 to $400.00 and gave the company an “overweight” rating in a research report on Wednesday, October 28th. Zacks Research raised Cloudflare from a “strong sell” rating to a “hold” rating in a report on Tuesday. Citigroup reiterated a “market outperform” rating on shares of Cloudflare in a research report on Monday, August 31st. Finally, BTIG Research increased their target price on Cloudflare from $382.00 to $413.00 and gave the stock a “buy” rating in a research note on Tuesday, October 6th. Twenty-six investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $332.82.

Cloudflare Stock Performance

Shares of NYSE NET traded up $24.69 during mid-day trading on Friday, hitting $269.20. 9,412,453 shares of the company were exchanged, compared to its average volume of 3,206,512. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. The stock has a 50 day simple moving average of $318.23 and a 200-day simple moving average of $249.77. Cloudflare has a 1-year low of $158.83 and a 1-year high of $370.35. The firm has a market cap of $95.15 billion, a price-to-earnings ratio of -395.88, a price-to-earnings-growth ratio of 210.90 and a beta of 1.37.

Cloudflare (NYSE:NET) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.04. The company 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%. Cloudflare’s revenue was up 39.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.27 EPS. On average, sell-side analysts forecast that Cloudflare will post 0.03 EPS for the current fiscal year.

Insider Activity at Cloudflare

In related news, CFO Thomas Seifert sold 12,500 shares of the firm’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the completion of the sale, the chief financial officer owned 104,958 shares in the company, valued at $31,444,367.22. This trade represents a 10.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 business’s stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the sale, the director directly owned 868,073 shares in the company, valued at approximately $264,241,421.20. This represents a 0.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 259,057 shares of company stock worth $79,516,905 over the last 90 days. Company insiders own 10.66% of the company’s stock.

Institutional Investors Weigh In On Cloudflare

A number of hedge funds and other institutional investors have recently modified their holdings of NET. Diversified Trust Co grew its holdings in Cloudflare by 23.6% in the third quarter. Diversified Trust Co now owns 15,606 shares of the company’s stock valued at $5,420,000 after purchasing an additional 2,977 shares during the last quarter. Moors & Cabot Inc. purchased a new stake in shares of Cloudflare in the third quarter valued at $237,000. Allworth Financial LP increased its stake in shares of Cloudflare by 10.9% during the 3rd quarter. Allworth Financial LP now owns 6,025 shares of the company’s stock valued at $2,092,000 after acquiring an additional 592 shares during the last quarter. Fisher Asset Management LLC raised its stake in Cloudflare by 57.2% during the third quarter. Fisher Asset Management LLC now owns 1,923 shares of the company’s stock worth $668,000 after purchasing an additional 700 shares during the period. Finally, Ariadne Wealth Management LP acquired a new position in Cloudflare in the third quarter valued at $229,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Cloudflare

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, beating estimates, while adjusted EPS of $0.38 also topped forecasts. The company cited strong enterprise demand and growing adoption of its developer platform. Cloudflare Q3 Earnings Beat Estimates on Robust Enterprise Demand
• Positive Sentiment: Cloudflare raised its 2026 outlook: full-year revenue guidance is about $3.0 billion and EPS guidance is $1.35, above consensus estimates. Fourth-quarter revenue guidance of $845 million–$846 million and EPS guidance of $0.43 also exceeded expectations. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Further signs of AI-related momentum include Cloudflare’s first revenue from AI bot traffic and a developer base that doubled to 10 million. Analysts at Wolfe Research upgraded the shares to Outperform. Why Cloudflare Stock Opened Higher Today
• Neutral Sentiment: Analyst actions were mixed: Piper Sandler reaffirmed Overweight and raised its target, while Scotiabank, Needham and Cantor Fitzgerald lowered targets; the latter firms retained positive or neutral ratings. Scotiabank rating update
• Negative Sentiment: Some profitability measures lagged growth: gross margin faced pressure, free cash flow grew more slowly than revenue, and the GAAP operating loss widened. Cloudflare’s high valuation may make the stock sensitive to any slowdown or disappointment. Cloudflare Sales Up 39%, Gross Margin Falls

About Cloudflare

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.