Stock Traders Purchase High Volume of Cloudflare Call Options (NYSE:NET)

Cloudflare, Inc. (NYSE:NET) was the recipient of unusually large options trading activity on Thursday. Stock investors acquired 13,474 call options on the stock. This is an increase of 11% compared to the average volume of 12,168 call options.

Insider Activity at Cloudflare

In other Cloudflare news, Director Carl Ledbetter sold 15,000 shares of Cloudflare stock in a transaction on Tuesday, January 27th. The stock was sold at an average price of $211.16, for a total value of $3,167,400.00. Following the completion of the transaction, the director owned 953,073 shares in the company, valued at approximately $201,250,894.68. The trade was a 1.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Thomas J. Seifert sold 10,000 shares of the business’s stock in a transaction on Tuesday, January 20th. The stock was sold at an average price of $178.37, for a total value of $1,783,700.00. Following the completion of the transaction, the chief financial officer directly owned 137,486 shares in the company, valued at approximately $24,523,377.82. This represents a 6.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 633,347 shares of company stock valued at $124,873,834. Insiders own 10.89% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Empowered Funds LLC lifted its holdings in shares of Cloudflare by 34.2% during the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock valued at $750,000 after purchasing an additional 1,696 shares in the last quarter. Sivia Capital Partners LLC acquired a new position in shares of Cloudflare in the second quarter valued at approximately $424,000. Ameritas Advisory Services LLC bought a new stake in shares of Cloudflare during the second quarter worth $39,000. IFP Advisors Inc raised its holdings in shares of Cloudflare by 32.7% during the second quarter. IFP Advisors Inc now owns 2,049 shares of the company’s stock worth $401,000 after acquiring an additional 505 shares during the period. Finally, Apollon Wealth Management LLC lifted its position in Cloudflare by 25.9% in the 2nd quarter. Apollon Wealth Management LLC now owns 3,696 shares of the company’s stock valued at $724,000 after acquiring an additional 761 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Stock Performance

NET stock opened at $196.00 on Friday. Cloudflare has a twelve month low of $89.42 and a twelve month high of $260.00. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.46. The company has a market cap of $68.66 billion, a P/E ratio of -675.84, a price-to-earnings-growth ratio of 328.65 and a beta of 1.97. The business’s fifty day moving average is $190.27 and its 200-day moving average is $204.76.

Cloudflare (NYSE:NET) last released its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.01. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.The firm had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. During the same quarter in the prior year, the firm posted $0.19 earnings per share. The company’s quarterly revenue was up 33.6% on a year-over-year basis. Equities research analysts forecast that Cloudflare will post -0.11 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the stock. Citigroup increased their price objective on shares of Cloudflare from $260.00 to $265.00 and gave the stock a “buy” rating in a report on Thursday. Wall Street Zen raised shares of Cloudflare from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. New Street Research set a $140.00 price objective on shares of Cloudflare in a research report on Wednesday. Needham & Company LLC reduced their price objective on Cloudflare from $285.00 to $250.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Cloudflare in a research note on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, Cloudflare currently has a consensus rating of “Moderate Buy” and an average target price of $232.11.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q4 beat — Cloudflare reported revenue of ~$614.5M (+33.6% YoY) and EPS of $0.28, with management highlighting record deal activity, rising RPO/cRPO and improving free cash flow. MSN: Q4 growth
• Positive Sentiment: Revenue guidance topped estimates — management raised FY‑2026 revenue outlook (management cited a figure near $2.795B), signaling confidence in sustained demand and driving the rally. Investing.com: Guidance beats
• Positive Sentiment: AI tailwind — multiple reports and management commentary point to rising “agentic” traffic (e.g., Moltbot) that boosts security, networking and edge services, creating a durable demand cycle. Yahoo: AI deals
• Positive Sentiment: Analyst upgrades and higher targets — several firms upgraded or raised targets (examples include Robert W. Baird to outperform/$260 and DZ Bank to buy/$215), adding conviction to the upside thesis. Finviz: Analyst moves
• Positive Sentiment: Elevated options activity — unusually large call buying (13,474 contracts) suggests short‑term bullish/speculative positioning around the stock.
• Neutral Sentiment: Mixed analyst notes — some firms reaffirm neutral/hold stances (Cantor Fitzgerald) or trimmed PTs modestly while keeping buy ratings, reflecting differing views on valuation vs. growth. Zacks: Analyst roundup
• Neutral Sentiment: Valuation questions persist — coverage pieces and valuation checks note Cloudflare’s rich multiples given ongoing margin/headwind dynamics, so upside depends on continued revenue leverage. Yahoo: Valuation check
• Negative Sentiment: Insider sale disclosed — director John Graham‑Cumming sold 2,520 shares; small relative to his holdings but noted by the market. SEC: Form 4
• Negative Sentiment: Institutional profit‑taking — at least one fund materially trimmed its stake in recent filings, evidence of some near‑term selling pressure amid the rally. DefenseWorld: Institutional trimming
• Negative Sentiment: Some target cuts — a few analysts reduced price targets (e.g., Scotiabank), underscoring uneven short‑term sentiment despite the beat. TickerReport: PT cuts

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.