Cloudflare (NYSE:NET) Releases Quarterly Earnings Results, Misses Estimates By $0.21 EPS

Cloudflare (NYSE:NET) announced its quarterly earnings results on Thursday. The company reported ($0.03) EPS for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.21), Zacks reports. Cloudflare had a negative return on equity of 5.52% and a negative net margin of 4.72%. Cloudflare updated its FY 2025 guidance to 0.790-0.800 EPS and its Q1 2025 guidance to 0.160-0.160 EPS.

Cloudflare Price Performance

Shares of NET opened at $166.88 on Friday. Cloudflare has a fifty-two week low of $66.24 and a fifty-two week high of $171.38. The company has a debt-to-equity ratio of 1.32, a quick ratio of 3.37 and a current ratio of 3.37. The company has a market capitalization of $57.27 billion, a P/E ratio of -758.52 and a beta of 1.12. The business’s 50-day moving average is $117.55 and its two-hundred day moving average is $96.24.

Insider Buying and Selling

In related news, insider Douglas James Kramer sold 2,481 shares of the firm’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $131.66, for a total transaction of $326,648.46. Following the sale, the insider now owns 175,688 shares in the company, valued at approximately $23,131,082.08. This trade represents a 1.39 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction dated Friday, November 15th. The stock was sold at an average price of $89.06, for a total transaction of $4,665,319.04. Following the completion of the transaction, the chief executive officer now owns 192,177 shares of the company’s stock, valued at approximately $17,115,283.62. This trade represents a 21.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 633,738 shares of company stock valued at $69,632,506 over the last ninety days. Company insiders own 12.83% of the company’s stock.

Analysts Set New Price Targets

Several analysts have commented on NET shares. Truist Financial increased their target price on Cloudflare from $120.00 to $140.00 and gave the company a “buy” rating in a research note on Tuesday, January 28th. The Goldman Sachs Group upped their price target on shares of Cloudflare from $140.00 to $183.00 and gave the company a “buy” rating in a research report on Friday. Stifel Nicolaus raised their price objective on shares of Cloudflare from $136.00 to $175.00 and gave the stock a “buy” rating in a report on Friday. Royal Bank of Canada upped their target price on shares of Cloudflare from $123.00 to $170.00 and gave the company an “outperform” rating in a report on Friday. Finally, Baird R W downgraded Cloudflare from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 3rd. Three investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twelve have issued a buy rating to the stock. According to data from MarketBeat.com, Cloudflare currently has a consensus rating of “Hold” and an average target price of $128.48.

Cloudflare Company Profile

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.