Cloudflare Inc. (NYSE: NET) has seen its price target increased from $255.00 to $318.00 by Citigroup, as reported on Monday morning. The investment firm maintains a strong buy rating on the stock, reflecting confidence in the company’s future performance. This adjustment comes amid a series of analyst evaluations that indicate a robust interest in Cloudflare’s market potential.
Several other firms have also recently updated their assessments of Cloudflare. Needham & Company LLC raised its price target from $240.00 to $285.00, maintaining a buy rating. Similarly, Piper Sandler adjusted its price objective from $224.00 to $249.00, assigning a neutral rating. Bank of America increased its target from $235.00 to $240.00, also giving the stock a buy rating. In contrast, DZ Bank reiterated a sell rating and set a target price of $170.00, while Weiss Ratings assigned a “sell (d-)” rating on October 8.
Currently, one equity research analyst rates Cloudflare as a Strong Buy, while sixteen others have assigned a Buy rating. Ten analysts have opted for a Hold rating, and two have classified it as a Sell. According to data from MarketBeat, the company holds a consensus rating of “Moderate Buy” with an average price target of $234.16.
Cloudflare’s Recent Financial Performance
On October 30, Cloudflare reported its quarterly earnings, revealing an earnings per share (EPS) of $0.27. This figure surpassed analysts’ expectations of $0.23 by $0.04. Despite this positive outcome, the company reported a negative return on equity of 6.54% and a net margin of -5.12%. Revenue for the quarter reached $430.08 million, falling short of the consensus estimate of $544.87 million. However, this represents a 30.7% increase compared to the same period last year, where the company had an EPS of $0.20.
For the fourth quarter of 2025, Cloudflare has guided for an EPS of $0.270, while its full-year 2025 guidance is also set at $0.910. Analysts forecast that the company will post an EPS of -0.11 for the current fiscal year.
Insider Transactions and Institutional Activity
In related news, significant insider trading has occurred recently. CFO Thomas J. Seifert sold 41,555 shares on August 20, valued at approximately $7.9 million, reducing his ownership in the company by 17.98%. Following this transaction, Seifert still holds 189,517 shares, worth around $36.1 million. Additionally, CEO Matthew Prince sold 52,384 shares on September 11, amounting to about $11.9 million in value. Over the last three months, insiders have sold a total of 638,060 shares, reflecting a total transaction value of $133.2 million. Notably, corporate insiders hold 10.89% of the company’s stock.
Large institutional investors have also been active in the market. Mather Group LLC increased its position in Cloudflare by 1,188.2% in the first quarter, now owning 219 shares valued at $25,000 after acquiring an additional 202 shares. Physician Wealth Advisors Inc. raised its stake by 693.3% in the third quarter, owning 119 shares worth $26,000 after purchasing 104 additional shares. Westside Investment Management Inc. doubled its stake during the same period, now holding 130 shares valued at $28,000.
In total, institutional investors and hedge funds own approximately 82.68% of Cloudflare’s stock, indicating strong confidence in the company’s growth potential.
Cloudflare operates as a cloud services provider, delivering a diverse range of solutions to businesses globally. Its offerings include integrated cloud-based security solutions that encompass public and private cloud environments, on-premise applications, software-as-a-service products, and Internet of Things devices. The company also provides website and application security products, including firewalls, bot management, and SSL/TLS encryption, among others.
As Cloudflare continues to adapt to the dynamic landscape of cloud services, it remains a focal point for investors and analysts alike, reflecting its significant role in the technology sector.
