Cloudflare (NYSE:NET) Stock Crosses Below 50-Day Moving Average – Time to Sell?

Cloudflare, Inc. (NYSE:NET)’s share price crossed below its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $320.38 and traded as low as $317.55. Cloudflare shares last traded at $318.1560, with a volume of 2,194,519 shares.

Analyst Ratings Changes

NET has been the topic of a number of recent analyst reports. Royal Bank Of Canada increased their price target on shares of Cloudflare from $290.00 to $346.00 and gave the company an “outperform” rating in a report on Friday, August 7th. Wells Fargo & Company raised their price target on shares of Cloudflare from $380.00 to $400.00 and gave the company an “overweight” rating in a research report on Wednesday. BTIG Research boosted their price objective on shares of Cloudflare from $382.00 to $413.00 and gave the stock a “buy” rating in a report on Tuesday, October 6th. Piper Sandler upped their price objective on Cloudflare from $250.00 to $333.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Finally, UBS Group upped their price objective on Cloudflare from $250.00 to $350.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have given a Hold rating and five have issued a Sell rating to the company’s stock. Based on data from MarketBeat, Cloudflare presently has a consensus rating of “Moderate Buy” and an average price target of $331.33.

Cloudflare Trading Down 2.9%

The stock has a 50-day simple moving average of $320.38 and a two-hundred day simple moving average of $246.69. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The firm has a market cap of $112.46 billion, a PE ratio of -548.54, a price-to-earnings-growth ratio of 259.07 and a beta of 1.65.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. During the same quarter last year, the firm posted $0.21 EPS. The business’s quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, sell-side analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current year.

Insider Activity at Cloudflare

In related news, insider Michelle Zatlyn sold 33,003 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $294.63, for a total value of $9,723,673.89. Following the sale, the insider owned 69,775 shares in the company, valued at approximately $20,557,808.25. This trade represents a 32.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 55,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the completion of the sale, the chief financial officer owned 113,790 shares in the company, valued at $34,171,137. This represents a 32.58% 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. Insiders have sold a total of 476,339 shares of company stock worth $143,439,267 over the last quarter. Company insiders own 10.66% of the company’s stock.

Hedge Funds Weigh In On Cloudflare

Hedge funds and other institutional investors have recently modified their holdings of the company. Jennison Associates LLC increased its position in Cloudflare by 135.8% during the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock valued at $906,758,000 after acquiring an additional 2,530,872 shares during the last quarter. Amundi lifted its holdings in Cloudflare by 2.0% in the first quarter. Amundi now owns 1,707,256 shares of the company’s stock valued at $352,275,000 after acquiring an additional 32,804 shares during the period. National Pension Service boosted its position in Cloudflare by 1.6% in the second quarter. National Pension Service now owns 959,987 shares of the company’s stock worth $235,466,000 after purchasing an additional 15,546 shares during the last quarter. Swedbank AB boosted its position in Cloudflare by 697.5% in the first quarter. Swedbank AB now owns 927,606 shares of the company’s stock worth $191,402,000 after purchasing an additional 811,297 shares during the last quarter. Finally, Swiss National Bank boosted its position in Cloudflare by 8.1% in the first quarter. Swiss National Bank now owns 927,200 shares of the company’s stock worth $191,318,000 after purchasing an additional 69,800 shares during the last quarter. 82.68% of the stock is owned by institutional investors.

Cloudflare Company Profile

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.