Cloudflare (NYSE:NET) Reaches New 1-Year High – Here’s Why

Cloudflare, Inc. (NYSE:NET) hit a new 52-week high during trading on Thursday . The company traded as high as $278.88 and last traded at $273.54, with a volume of 417292 shares changing hands. The stock had previously closed at $273.40.

Key Headlines Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Scotiabank upgraded Cloudflare to Sector Outperform and raised its target to $300, arguing that AI traffic, edge computing, and zero-trust security can support stronger growth ahead. Scotiabank Sees a New Growth Story for Cloudflare
• Positive Sentiment: Cloudflare’s new research pilot with OpenAI adds to the company’s AI infrastructure story and suggests additional opportunities tied to web indexing and AI search. Cloudflare, OpenAI team up to launch research pilot for AI search indexing
• Neutral Sentiment: Director Carl Ledbetter sold 5,000 shares, but the trade was made under a pre-arranged Rule 10b5-1 plan, so it is less likely to be interpreted as a negative fundamental signal. Cloudflare Director Carl Ledbetter Sells 5,000 Shares
• Neutral Sentiment: Other recent insider sales, including by CEO Matthew Prince and director John Graham-Cumming, were also disclosed under pre-arranged trading plans and appear more routine than alarming. John Graham-Cumming Sells 2,520 Shares of Cloudflare Stock

Analyst Ratings Changes

NET has been the subject of several analyst reports. Morgan Stanley assumed coverage on shares of Cloudflare in a research note on Tuesday. They issued an “overweight” rating for the company. Sanford C. Bernstein restated a “market perform” rating and set a $136.00 target price on shares of Cloudflare in a research report on Wednesday, June 10th. Wells Fargo & Company assumed coverage on shares of Cloudflare in a research report on Tuesday. They issued a “neutral” rating for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a research note on Monday, April 20th. Finally, Scotiabank upgraded Cloudflare from a “sector perform” rating to a “sector outperform” rating and raised their price objective for the stock from $225.00 to $300.00 in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Cloudflare presently has a consensus rating of “Moderate Buy” and a consensus target price of $244.23.

Cloudflare Stock Up 0.1%

The firm’s 50-day moving average price is $229.40 and its 200 day moving average price is $206.40. The company has a market capitalization of $96.75 billion, a price-to-earnings ratio of -1,090.52, a PEG ratio of 270.75 and a beta of 1.67. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $639.75 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm’s quarterly revenue was up 33.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. On average, sell-side analysts forecast that Cloudflare, Inc. will post 0.02 EPS for the current fiscal year.

Insider Transactions at Cloudflare

In related news, Director Carl Ledbetter sold 5,000 shares of the company’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $268.11, for a total transaction of $1,340,550.00. Following the completion of the sale, the director directly owned 888,073 shares in the company, valued at $238,101,252.03. This represents a 0.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the firm’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $247.28, for a total value of $623,145.60. Following the completion of the sale, the director directly owned 494,909 shares in the company, valued at $122,381,097.52. This trade represents a 0.51% decrease in their ownership of the stock. 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 626,185 shares of company stock worth $139,810,855. 10.66% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Everhart Financial Group Inc. lifted its stake in Cloudflare by 1.4% in the 2nd quarter. Everhart Financial Group Inc. now owns 6,822 shares of the company’s stock valued at $1,673,000 after purchasing an additional 92 shares during the last quarter. Valeo Financial Advisors LLC bought a new stake in shares of Cloudflare during the second quarter worth $333,000. Assenagon Asset Management S.A. increased its holdings in shares of Cloudflare by 324.8% during the second quarter. Assenagon Asset Management S.A. now owns 40,776 shares of the company’s stock worth $10,002,000 after buying an additional 31,177 shares in the last quarter. GAMMA Investing LLC lifted its stake in shares of Cloudflare by 13.6% in the 2nd quarter. GAMMA Investing LLC now owns 2,153 shares of the company’s stock valued at $528,000 after acquiring an additional 257 shares during the last quarter. Finally, Grant Private Wealth Management Inc boosted its holdings in shares of Cloudflare by 6.2% during the 2nd quarter. Grant Private Wealth Management Inc now owns 5,622 shares of the company’s stock valued at $1,379,000 after acquiring an additional 326 shares in the last quarter. Institutional investors own 82.68% of the company’s stock.

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.