Cloudflare (NYSE:NET) Shares Down 5.9% – Here’s What Happened

Cloudflare, Inc. (NYSE:NET)’s share price dropped 5.9% on Friday. The stock traded as low as $297.39 and last traded at $297.7550. 346,211 shares were traded during mid-day trading, a decline of 91% from the average session volume of 4,044,874 shares. The stock had previously closed at $316.32.

Analyst Ratings Changes

A number of equities analysts recently commented on NET shares. Robert W. Baird set a $330.00 price objective on shares of Cloudflare in a research note on Friday, August 7th. Piper Sandler boosted their target price on shares of Cloudflare from $250.00 to $333.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Citizens Jmp reissued a “market outperform” rating and set a $394.00 target price on shares of Cloudflare in a research note on Monday, August 31st. Cantor Fitzgerald restated a “neutral” rating and issued a $340.00 target price on shares of Cloudflare in a report on Monday, October 5th. Finally, The Goldman Sachs Group restated a “buy” rating and issued a $389.00 target price on shares of Cloudflare in a report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $330.59.

Cloudflare Price Performance

The company has a market capitalization of $103.39 billion, a PE ratio of -506.17, a P/E/G ratio of 257.95 and a beta of 1.65. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The stock has a 50 day moving average price of $319.61 and a two-hundred day moving average price of $263.78.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.02. The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. Cloudflare’s quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.21 EPS. 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, Inc. will post 0.03 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Alissa Michelle Starzak sold 2,538 shares of the stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $304.68, for a total transaction of $773,277.84. Following the transaction, the insider owned 112,082 shares of the company’s stock, valued at approximately $34,149,143.76. This represents a 2.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 10,000 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $332.46, for a total value of $3,324,600.00. Following the transaction, the chief financial officer directly owned 107,902 shares in the company, valued at approximately $35,873,098.92. This represents a 8.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 458,839 shares of company stock worth $138,172,392. Insiders own 10.66% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. GK Wealth Management LLC acquired a new stake in Cloudflare in the 3rd quarter valued at $25,000. Toth Financial Advisory Corp acquired a new position in Cloudflare during the third quarter worth $36,000. Cornerstone Financial Management LLC raised its stake in Cloudflare by 65.3% during the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock worth $29,000 after acquiring an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new position in shares of Cloudflare during the second quarter valued at $30,000. Finally, CX Institutional lifted its holdings in shares of Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after acquiring an additional 44 shares during the period. 82.68% of the stock is owned by institutional investors.

About Cloudflare

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.