Cloudflare (NYSE:NET) Stock Gets Price Target Reduction from Scotiabank

Cloudflare (NYSE:NET) had its price objective reduced by investment analysts at Scotiabank from $390.00 to $360.00 in a report issued on Friday, Benzinga reports. The brokerage currently has a “sector outperform” rating on the stock. Scotiabank‘s price objective would suggest a potential upside of 32.72% from the stock’s current price.

Other equities research analysts have also recently issued reports about the company. Barclays boosted their price target on Cloudflare from $355.00 to $400.00 and gave the company an “overweight” rating in a research note on Monday, October 12th. Jefferies Financial Group set a $315.00 price objective on Cloudflare and gave the stock a “hold” rating in a research note on Friday. Royal Bank Of Canada dropped their price objective on Cloudflare from $405.00 to $350.00 and set an “outperform” rating for the company in a report on Friday. Zacks Research upgraded Cloudflare from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Finally, Morgan Stanley started coverage on Cloudflare in a research report on Tuesday. They set an “overweight” rating for the company. Twenty-six equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $332.82.

Cloudflare Stock Performance

Cloudflare stock traded up $26.74 during midday trading on Friday, hitting $271.25. The company’s stock had a trading volume of 6,093,240 shares, compared to its average volume of 4,057,458. Cloudflare has a 1-year low of $158.83 and a 1-year high of $370.35. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The company has a 50-day moving average price of $319.02 and a two-hundred day moving average price of $249.31. The company has a market cap of $95.88 billion, a price-to-earnings ratio of -466.55, a PEG ratio of 206.44 and a beta of 1.37.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, November 5th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.04. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $782.51 million for the quarter, compared to analyst estimates of $737.16 million. During the same quarter in the prior year, the business posted $0.27 EPS. The business’s revenue was up 39.2% compared to the same quarter last year. As a group, sell-side analysts predict that Cloudflare will post 0.03 earnings per share for the current year.

Insider Buying and Selling

In other Cloudflare news, insider Michelle Zatlyn sold 33,003 shares of the company’s stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $348.29, for a total transaction of $11,494,614.87. Following the completion of the sale, the insider directly owned 69,775 shares in the company, valued at $24,301,934.75. This represents a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 12,500 shares of the firm’s stock in a transaction on 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 directly owned 104,958 shares in the company, valued at approximately $31,444,367.22. This represents a 10.64% 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. In the last 90 days, insiders have sold 259,057 shares of company stock worth $79,516,905. Corporate insiders own 10.66% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

Institutional investors have recently modified their holdings of the business. Allworth Financial LP raised its stake in Cloudflare by 10.9% during the third quarter. Allworth Financial LP now owns 6,025 shares of the company’s stock worth $2,092,000 after acquiring an additional 592 shares in the last quarter. Fisher Asset Management LLC lifted its holdings in shares of Cloudflare by 57.2% in the third quarter. Fisher Asset Management LLC now owns 1,923 shares of the company’s stock worth $668,000 after acquiring an additional 700 shares during the last quarter. Ariadne Wealth Management LP bought a new position in shares of Cloudflare in the third quarter worth about $229,000. R Squared Ltd acquired a new stake in shares of Cloudflare in the 3rd quarter valued at approximately $323,000. Finally, Mitsubishi UFJ Morgan Stanley Securities Co. Ltd. acquired a new stake in shares of Cloudflare in the 3rd quarter valued at approximately $72,000. Institutional investors and hedge funds own 82.68% of the company’s stock.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q3 revenue rose 39.2% year over year to $782.5 million, topping expectations, while adjusted EPS of $0.38 also beat estimates. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Management issued Q4 guidance well above consensus: revenue of $845–$846 million versus about $798 million expected, and EPS of $0.43 versus $0.31. Its FY 2026 outlook also increased to roughly $3.0 billion in revenue and $1.35 EPS, both ahead of analyst expectations. Cloudflare Q3 Earnings Beat Estimates
• Positive Sentiment: Enterprise adoption and AI platform usage were key growth drivers. Cloudflare doubled its active developer base to 10 million and reported its first revenue from AI bot traffic, supporting the case for continued demand for its platform. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Wolfe Research upgraded NET to “outperform,” while Piper Sandler reaffirmed “overweight” and raised its price target to $337. Wolfe Research rating
• Neutral Sentiment: Analyst views were mixed: Needham lowered its target but maintained a “buy” rating, while Cantor Fitzgerald cut its target and kept a “neutral” rating. Cantor Fitzgerald rating
• Negative Sentiment: Gross margin pressure, slower growth in free cash flow than revenue, and a wider GAAP operating loss temper the upbeat growth story. Cloudflare Sales Up 39%, Gross Margin Falls
• Negative Sentiment: Cloudflare’s high valuation leaves little room for execution misses, and broader technology-sector selling recently pressured the shares despite strong company results. Cloudflare Just Had Its Best Quarter Ever

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.