Citigroup Cuts Cloudflare (NYSE:NET) Price Target to $260.00

Cloudflare (NYSE:NET) had its price target cut by Citigroup from $318.00 to $260.00 in a research report report published on Friday morning,Benzinga reports. They currently have a buy rating on the stock.

Several other research firms have also issued reports on NET. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a report on Wednesday, October 8th. DZ Bank raised Cloudflare from a “sell” rating to a “hold” rating and set a $237.00 price target on the stock in a research report on Wednesday, November 5th. Stifel Nicolaus increased their price objective on Cloudflare from $230.00 to $275.00 and gave the company a “buy” rating in a report on Friday, October 31st. Guggenheim reissued a “sell” rating on shares of Cloudflare in a research note on Tuesday, October 21st. Finally, Wall Street Zen upgraded shares of Cloudflare from a “hold” rating to a “buy” rating in a report on Saturday, November 8th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $230.26.

Cloudflare Price Performance

NET opened at $184.41 on Friday. The stock has a market cap of $64.60 billion, a P/E ratio of -614.70, a P/E/G ratio of 121.13 and a beta of 1.96. Cloudflare has a 12 month low of $89.42 and a 12 month high of $260.00. The company has a quick ratio of 2.04, a current ratio of 2.04 and a debt-to-equity ratio of 1.46. The company has a fifty day simple moving average of $200.18 and a 200 day simple moving average of $206.54.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.04. The firm had revenue of $562.03 million for the quarter, compared to analyst estimates of $544.65 million. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. The business’s revenue was up 30.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.20 earnings per share. Cloudflare has set its Q4 2025 guidance at 0.270-0.270 EPS and its FY 2025 guidance at 0.910-0.910 EPS. On average, research analysts expect that Cloudflare will post -0.11 EPS for the current year.

Insider Buying and Selling at Cloudflare

In other news, Director Mark J. Hawkins sold 134 shares of the firm’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $198.90, for a total transaction of $26,652.60. Following the completion of the sale, the director owned 10,722 shares in the company, valued at approximately $2,132,605.80. This trade represents a 1.23% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John Graham-Cumming sold 2,520 shares of Cloudflare stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $200.27, for a total transaction of $504,680.40. Following the sale, the director directly owned 495,191 shares of the company’s stock, valued at $99,171,901.57. The trade was a 0.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 609,213 shares of company stock worth $120,586,544. 10.89% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Empowered Funds LLC grew its position in shares of Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock valued at $750,000 after purchasing an additional 1,696 shares during the last quarter. Strs Ohio acquired a new stake in Cloudflare during the 1st quarter worth approximately $688,000. Financiere des Professionnels Fonds d investissement inc. bought a new stake in Cloudflare in the 2nd quarter valued at $226,000. Aaron Wealth Advisors LLC grew its holdings in Cloudflare by 26.3% in the 2nd quarter. Aaron Wealth Advisors LLC now owns 2,382 shares of the company’s stock valued at $466,000 after buying an additional 496 shares in the last quarter. Finally, Pallas Capital Advisors LLC grew its holdings in Cloudflare by 40.3% in the 2nd quarter. Pallas Capital Advisors LLC now owns 4,104 shares of the company’s stock valued at $804,000 after buying an additional 1,178 shares in the last quarter. 82.68% of the stock is owned by institutional investors.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Acquisition — Cloudflare announced it has hired The Astro Technology Company team (creators of the Astro web framework), a deal that strengthens its developer tooling and edge web‑development capabilities. Read More.
• Positive Sentiment: Acquisition — Cloudflare is acquiring Human Native, an AI data marketplace intended to help AI developers find, access and buy high‑quality training data — a clear strategic push into AI monetization that traders view as growth‑positive. Read More.
• Neutral Sentiment: Analyst action — Citigroup lowered its price target from $318 to $260 but kept a “buy” rating (the new target still implies material upside versus current levels), so the move partially trims enthusiasm while leaving a constructive stance. Read More.
• Neutral Sentiment: Street consensus — The analyst mix remains skewed positive (many Buy/outperform ratings) with a MarketBeat consensus target near the low‑to‑mid‑$200s, keeping expectations for upside but showing varied conviction.
• Negative Sentiment: Insider selling — CEO Michelle Zatlyn disclosed sizeable share sales (25,641 shares on Jan. 13 and Jan. 15 in filings), which can spook some investors as liquidity‑taking or signal near‑term confidence differences. Read More.
• Negative Sentiment: Other insider disposition — A separate disclosure shows Rep. Gilbert Ray Cisneros Jr. sold shares recently, adding to the stream of insider exits. Read More.
• Negative Sentiment: Negative third‑party voice — Weiss Ratings included Cloudflare on a “sell” list, which may pressure sentiment among retail investors who follow such services. Read More.
• Negative Sentiment: Company report risk — A recent Cloudflare report flagged a potential “technical glass ceiling” for AI growth and cybersecurity implications, which could raise execution concerns for investors focused on AI upside. Read More.

Cloudflare Company Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.