Lee Johnson Capital Management LLC Invests $4.84 Million in Cloudflare, Inc. $NET

Lee Johnson Capital Management LLC purchased a new position in shares of Cloudflare, Inc. (NYSE:NET) during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 22,537 shares of the company’s stock, valued at approximately $4,836,000. Cloudflare makes up 1.6% of Lee Johnson Capital Management LLC’s portfolio, making the stock its 22nd largest position.

Several other institutional investors have also added to or reduced their stakes in the company. Twin Peaks Wealth Advisors LLC acquired a new position in Cloudflare during the second quarter worth about $29,000. Quaker Wealth Management LLC boosted its holdings in shares of Cloudflare by 218.6% during the 2nd quarter. Quaker Wealth Management LLC now owns 166 shares of the company’s stock valued at $33,000 after acquiring an additional 306 shares in the last quarter. Hilltop National Bank bought a new stake in Cloudflare during the 2nd quarter worth $36,000. Ameritas Advisory Services LLC bought a new position in Cloudflare in the second quarter valued at about $39,000. Finally, Cullen Frost Bankers Inc. acquired a new stake in shares of Cloudflare during the second quarter valued at about $45,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several research firms have recently issued reports on NET. Jefferies Financial Group reaffirmed a “hold” rating and set a $225.00 price target on shares of Cloudflare in a research note on Tuesday, December 16th. Susquehanna lifted their target price on Cloudflare from $205.00 to $260.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Stifel Nicolaus upped their price target on Cloudflare from $230.00 to $275.00 and gave the company a “buy” rating in a research report on Friday, October 31st. Mizuho lifted their price objective on Cloudflare from $240.00 to $280.00 and gave the stock an “outperform” rating in a research note on Friday, October 31st. Finally, JMP Securities set a $270.00 target price on shares of Cloudflare in a research report on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cloudflare has a consensus rating of “Moderate Buy” and a consensus target price of $234.78.

Insiders Place Their Bets

In other news, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $208.61, for a total value of $5,348,969.01. Following the completion of the sale, the insider owned 24,555 shares in the company, valued at $5,122,418.55. This represents a 51.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Thomas J. Seifert sold 10,000 shares of the business’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $201.69, for a total transaction of $2,016,900.00. Following the transaction, the chief financial officer owned 137,486 shares in the company, valued at approximately $27,729,551.34. This trade represents a 6.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 627,945 shares of company stock worth $128,468,645 in the last three months. 10.89% of the stock is owned by corporate insiders.

Cloudflare Trading Down 0.5%

Shares of NET stock opened at $199.75 on Wednesday. Cloudflare, Inc. has a fifty-two week low of $89.42 and a fifty-two week high of $260.00. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. The stock has a 50 day simple moving average of $209.70 and a two-hundred day simple moving average of $206.00. The company has a market cap of $69.97 billion, a P/E ratio of -665.82 and a beta of 1.95.

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

About Cloudflare

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.