Citigroup Has Lowered Expectations for Cloudflare (NYSE:NET) Stock Price

Cloudflare (NYSE:NET) had its price objective dropped by Citigroup from $318.00 to $260.00 in a research note issued on Friday,Benzinga reports. The firm presently has a “buy” rating on the stock. Citigroup’s price target points to a potential upside of 39.57% from the company’s previous close.

A number of other research firms have also issued reports on NET. Piper Sandler decreased their target price on Cloudflare from $249.00 to $220.00 and set a “neutral” rating for the company in a report on Monday, January 5th. KeyCorp increased their price target on Cloudflare from $235.00 to $300.00 and gave the company an “overweight” rating in a research report on Friday, October 31st. JMP Securities set a $270.00 price objective on Cloudflare in a research report on Friday, October 31st. Argus raised their target price on shares of Cloudflare from $238.00 to $265.00 and gave the company a “buy” rating in a report on Monday, November 10th. Finally, Citizens Jmp lifted their price target on shares of Cloudflare from $250.00 to $270.00 and gave the stock a “market outperform” rating in a research note on Friday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $230.26.

Cloudflare Trading Up 1.2%

Shares of NET traded up $2.14 during midday trading on Friday, hitting $186.28. 1,003,156 shares of the stock were exchanged, compared to its average volume of 2,396,541. Cloudflare has a 52-week low of $89.42 and a 52-week high of $260.00. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. The stock has a fifty day simple moving average of $201.16 and a 200 day simple moving average of $206.33. The firm has a market cap of $65.25 billion, a P/E ratio of -620.27, a P/E/G ratio of 123.91 and a beta of 1.96.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, October 30th. The company reported $0.27 EPS for the quarter, beating analysts’ consensus estimates of $0.23 by $0.04. Cloudflare had a negative return on equity of 6.54% and a negative net margin of 5.12%.The company had revenue of $562.03 million during the quarter, compared to analysts’ expectations of $544.65 million. During the same period last year, the business posted $0.20 EPS. Cloudflare’s revenue for the quarter was up 30.7% on a year-over-year basis. Cloudflare has set its Q4 2025 guidance at 0.270-0.270 EPS and its FY 2025 guidance at 0.910-0.910 EPS. On average, research analysts anticipate that Cloudflare will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Thursday, January 8th. The stock was sold at an average price of $189.47, for a total value of $9,925,196.48. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Mark J. Hawkins sold 134 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $198.90, for a total transaction of $26,652.60. Following the transaction, the director owned 10,722 shares in the company, valued at approximately $2,132,605.80. This trade represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 634,213 shares of company stock valued at $125,864,394 in the last 90 days. Company insiders own 10.89% 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 stock. Physician Wealth Advisors Inc. lifted its position in shares of Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock valued at $26,000 after acquiring an additional 104 shares during the period. Wiser Advisor Group LLC acquired a new position in Cloudflare during the third quarter worth $26,000. Westside Investment Management Inc. boosted its position in Cloudflare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock worth $28,000 after purchasing an additional 65 shares in the last quarter. ORG Wealth Partners LLC grew its holdings in Cloudflare by 101.4% in the third quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock valued at $30,000 after purchasing an additional 70 shares during the last quarter. Finally, Wexford Capital LP acquired a new stake in Cloudflare in the third quarter valued at $30,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Acquisition — Cloudflare agreed to buy Human Native, an AI data marketplace that helps developers source high‑quality training data; the deal is viewed as a direct push into AI monetization and tooling for model builders. Cloudflare acquires AI data marketplace Human Native
• Positive Sentiment: Developer platform boost — Cloudflare announced it’s bringing The Astro Technology Company (the Astro web framework team) in‑house, strengthening its high‑performance web development and edge‑developer stack. Cloudflare Acquires Astro
• Positive Sentiment: Market reaction — Coverage notes the stock “rebounded” as investors digested the Human Native deal, indicating short‑term sentiment improvement tied to strategic M&A. Cloudflare rebounds as investors digest deal for Human Native
• Neutral Sentiment: Earnings schedule — Cloudflare set the date for its Q4 2025 results, which will be a near‑term catalyst where guidance and AI monetization updates could move the stock. Cloudflare Announces Date of Fourth Quarter 2025 Financial Results
• Neutral Sentiment: Intraday volatility — Reports highlighted that NET fell on some days even when the broader market rose, signaling idiosyncratic flow and news sensitivity rather than sector weakness. Cloudflare (NET) Stock Drops Despite Market Gains
• Negative Sentiment: Insider selling — CEO Michelle Zatlyn disclosed multiple recent share sales (Jan. 13 & Jan. 15 filings), significantly reducing her holdings; large insider dispositions can spook investors and cap near‑term upside. Insider sale SEC filing
• Negative Sentiment: Additional insider sale — A separate disclosure shows Rep. Gilbert Ray Cisneros Jr. sold Cloudflare shares recently, adding to the stream of insider dispositions. Rep. Gilbert Ray Cisneros, Jr. Sells Shares
• Negative Sentiment: Negative third‑party view — Weiss Ratings listed Cloudflare among names to “sell,” which can pressure retail sentiment even if fundamentals remain intact. Weiss Ratings Urges Investors to Sell

Cloudflare Company Profile

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.