Cloudflare (NYSE:NET) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Cloudflare (NYSE:NET) had its price target upped by investment analysts at Morgan Stanley from $305.00 to $322.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s target price would indicate a potential upside of 14.80% from the company’s current price.

Other analysts have also recently issued reports about the stock. Piper Sandler reiterated an “overweight” rating on shares of Cloudflare in a research note on Wednesday, June 10th. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a “buy” rating in a report on Tuesday, July 7th. Barclays upped their price objective on shares of Cloudflare from $250.00 to $300.00 and gave the stock an “overweight” rating in a report on Monday. KeyCorp reissued an “overweight” rating on shares of Cloudflare in a research report on Wednesday, June 10th. Finally, Susquehanna raised their target price on Cloudflare from $190.00 to $200.00 and gave the company a “neutral” rating in a report on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Cloudflare presently has a consensus rating of “Moderate Buy” and an average target price of $253.41.

Cloudflare Stock Up 2.9%

Cloudflare stock traded up $8.02 during trading hours on Friday, hitting $280.48. The company had a trading volume of 1,504,910 shares, compared to its average volume of 4,394,558. Cloudflare has a fifty-two week low of $158.83 and a fifty-two week high of $291.00. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The firm has a market capitalization of $99.14 billion, a P/E ratio of -1,118.64, a price-to-earnings-growth ratio of 278.29 and a beta of 1.67. The firm’s fifty day moving average is $234.74 and its 200-day moving average is $209.47.

Cloudflare (NYSE:NET) last issued its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The company had revenue of $639.75 million during the quarter, compared to analyst estimates of $620.83 million. During the same quarter last year, the business posted $0.16 EPS. The company’s revenue for the quarter was up 33.5% on a year-over-year basis. 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, research analysts forecast that Cloudflare will post 0.02 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Michelle Zatlyn sold 35,080 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the transaction, the insider directly owned 47,425 shares in the company, valued at $10,148,001.50. This represents a 42.52% decrease in their position. The transaction was disclosed in a document filed 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, CEO Matthew Prince sold 52,422 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 616,185 shares of company stock valued at $137,831,055. Corporate insiders own 10.66% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Empowered Funds LLC grew its position in Cloudflare by 34.2% during the first quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock worth $750,000 after buying an additional 1,696 shares in the last quarter. Sivia Capital Partners LLC bought a new stake in shares of Cloudflare during the second quarter valued at approximately $424,000. Cerity Partners LLC raised its stake in shares of Cloudflare by 30.1% in the second quarter. Cerity Partners LLC now owns 27,531 shares of the company’s stock valued at $5,391,000 after purchasing an additional 6,363 shares in the last quarter. Sei Investments Co. lifted its position in Cloudflare by 40.1% in the second quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock worth $64,432,000 after purchasing an additional 94,112 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its stake in Cloudflare by 14.6% during the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company’s stock worth $3,224,000 after buying an additional 2,093 shares in the last quarter. Institutional investors and hedge funds 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.