Cloudflare (NYSE:NET) Releases Quarterly Earnings Results

Cloudflare (NYSE:NET) announced its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share (EPS) for the quarter, missing the consensus estimate 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 %

NET traded down $3.04 during trading hours on Thursday, reaching $141.25. 6,722,994 shares of the stock traded hands, compared to its average volume of 3,330,880. The firm’s fifty day simple moving average is $116.71 and its two-hundred day simple moving average is $95.92. The company has a market cap of $48.47 billion, a price-to-earnings ratio of -543.25 and a beta of 1.12. Cloudflare has a fifty-two week low of $66.24 and a fifty-two week high of $144.30. The company has a debt-to-equity ratio of 1.32, a current ratio of 3.37 and a quick ratio of 3.37.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. The Goldman Sachs Group raised shares of Cloudflare from a “sell” rating to a “buy” rating and upped their price objective for the company from $77.00 to $140.00 in a research note on Thursday, January 2nd. Stifel Nicolaus raised shares of Cloudflare from a “hold” rating to a “buy” rating and upped their price objective for the company from $95.00 to $136.00 in a research note on Tuesday, December 17th. Piper Sandler upped their price objective on shares of Cloudflare from $83.00 to $92.00 and gave the company a “neutral” rating in a research note on Friday, November 8th. Baird R W downgraded shares of Cloudflare from a “strong-buy” rating to a “hold” rating in a research note on Monday. Finally, Truist Financial upped their price objective on shares of Cloudflare from $120.00 to $140.00 and gave the company a “buy” rating in a research note on Tuesday, January 28th. Three analysts have rated the stock with a sell rating, eleven have given a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $112.32.

Insider Activity at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 28,635 shares of the stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $95.03, for a total transaction of $2,721,184.05. Following the transaction, the chief financial officer now directly owns 252,869 shares in the company, valued at $24,030,141.07. This represents a 10.17 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Douglas James Kramer sold 2,481 shares of the firm’s stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $131.66, for a total transaction of $326,648.46. Following the completion of the transaction, the insider now owns 175,688 shares in the company, valued at approximately $23,131,082.08. The trade was a 1.39 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 633,738 shares of company stock valued at $69,632,506. Corporate insiders own 12.83% of the company’s stock.

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.