Cloudflare (NYSE:NET) Posts Earnings Results, Misses Expectations By $0.21 EPS

Cloudflare (NYSE:NET) announced its earnings results on Thursday. The company reported ($0.03) earnings per share 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 Performance

Shares of NET stock traded up $25.83 during trading on Friday, reaching $167.35. 7,456,657 shares of the company’s stock were exchanged, compared to its average volume of 3,480,834. The firm’s fifty day moving average price is $116.71 and its 200-day moving average price is $95.92. The stock has a market capitalization of $57.43 billion, a PE ratio of -645.95 and a beta of 1.12. Cloudflare has a twelve month low of $66.24 and a twelve month high of $167.00. The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.32.

Insider Activity at Cloudflare

In other news, CFO Thomas J. Seifert sold 28,635 shares of the business’s stock in a transaction on 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 completion of the transaction, the chief financial officer now owns 252,869 shares of the company’s stock, valued at approximately $24,030,141.07. The trade was a 10.17 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the business’s stock in a transaction on Wednesday, November 13th. The stock was 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 trade represents a 21.42 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 633,738 shares of company stock worth $69,632,506 in the last ninety days. 12.83% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on NET shares. Oppenheimer cut Cloudflare from an “outperform” rating to a “market perform” rating in a report on Friday. Robert W. Baird restated a “neutral” rating and set a $140.00 target price (up previously from $125.00) on shares of Cloudflare in a report on Monday. Cantor Fitzgerald began coverage on Cloudflare in a report on Friday, January 17th. They set a “neutral” rating and a $111.00 target price on the stock. Morgan Stanley raised their target price on Cloudflare from $130.00 to $140.00 and gave the stock an “overweight” rating in a report on Tuesday, January 21st. Finally, Piper Sandler lifted their price objective on Cloudflare from $92.00 to $153.00 and gave the company a “neutral” rating in a report on Friday. Three analysts have rated the stock with a sell rating, twelve have issued a hold rating and twelve have issued a buy rating to the company. According to MarketBeat, Cloudflare currently has a consensus rating of “Hold” and a consensus price target of $119.56.

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.