Cloudflare (NYSE:NET) Issues Earnings Results

Cloudflare (NYSE:NET) announced its quarterly earnings data on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.21), Zacks reports. Cloudflare had a negative net margin of 5.97% and a negative return on equity of 7.18%. Cloudflare updated its FY 2025 guidance to 0.790-0.800 EPS and its Q1 2025 guidance to 0.160-0.160 EPS.

Cloudflare Stock Down 2.1 %

Shares of NYSE NET traded down $3.04 during trading hours on Thursday, hitting $141.25. The company had a trading volume of 6,722,994 shares, compared to its average volume of 3,330,880. The stock has a market capitalization of $48.47 billion, a P/E ratio of -543.25 and a beta of 1.12. Cloudflare has a 1-year low of $66.24 and a 1-year high of $144.30. The firm’s 50 day moving average is $116.71 and its 200-day moving average is $95.92. The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.32.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the stock. Morgan Stanley boosted their price objective on shares of Cloudflare from $130.00 to $140.00 and gave the company an “overweight” rating in a report on Tuesday, January 21st. Mizuho upped their price objective on shares of Cloudflare from $102.00 to $125.00 and gave the company a “neutral” rating in a research report on Friday, December 13th. UBS Group lifted their target price on Cloudflare from $88.00 to $95.00 and gave the stock a “neutral” rating in a report on Friday, November 8th. Stifel Nicolaus upgraded Cloudflare from a “hold” rating to a “buy” rating and increased their price target for the stock from $95.00 to $136.00 in a report on Tuesday, December 17th. Finally, Cantor Fitzgerald initiated coverage on Cloudflare in a report on Friday, January 17th. They set a “neutral” rating and a $111.00 price objective on the stock. Three investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and thirteen have assigned a buy rating to the company’s stock. According to MarketBeat, Cloudflare currently has a consensus rating of “Hold” and an average target price of $112.32.

Insiders Place Their Bets

In other news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction dated Wednesday, November 13th. The shares were sold at an average price of $95.59, for a total value of $5,007,386.56. Following the transaction, the chief executive officer now directly owns 192,177 shares of the company’s stock, valued at $18,370,199.43. This represents a 21.42 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Thomas J. Seifert sold 28,635 shares of Cloudflare stock in a transaction dated Tuesday, November 19th. The stock was sold at an average price of $95.03, for a total transaction of $2,721,184.05. Following the sale, the chief financial officer now directly owns 252,869 shares of the company’s stock, valued at $24,030,141.07. The trade was a 10.17 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 633,738 shares of company stock valued at $69,632,506. 12.83% of the stock is currently owned by corporate insiders.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.