Cloudflare, Inc. $NET Stake Reduced by Strategy Capital LLC

Strategy Capital LLC decreased its position in Cloudflare, Inc. (NYSE:NET) by 10.4% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,042,099 shares of the company’s stock after selling 120,839 shares during the quarter. Cloudflare makes up 15.2% of Strategy Capital LLC’s investment portfolio, making the stock its 3rd largest position. Strategy Capital LLC’s holdings in Cloudflare were worth $205,450,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Cloudflare by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock valued at $6,389,167,000 after acquiring an additional 90,397 shares during the period. Geode Capital Management LLC increased its position in shares of Cloudflare by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock valued at $1,184,044,000 after acquiring an additional 241,981 shares during the period. Invesco Ltd. increased its position in shares of Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after acquiring an additional 49,485 shares during the period. Norges Bank purchased a new position in shares of Cloudflare in the fourth quarter valued at about $718,316,000. Finally, Legal & General Group Plc increased its position in shares of Cloudflare by 4.9% in the fourth quarter. Legal & General Group Plc now owns 2,824,772 shares of the company’s stock valued at $556,904,000 after acquiring an additional 131,127 shares during the period. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on NET shares. TD Cowen restated a “buy” rating on shares of Cloudflare in a research report on Wednesday. Mizuho upped their target price on Cloudflare from $235.00 to $260.00 and gave the company an “outperform” rating in a report on Wednesday. Cantor Fitzgerald restated a “neutral” rating and set a $230.00 target price (up from $224.00) on shares of Cloudflare in a report on Wednesday. Guggenheim restated a “sell” rating and set a $140.00 target price on shares of Cloudflare in a report on Wednesday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Cloudflare in a report on Monday, April 20th. Twenty investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $241.35.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist Financial raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, implying further upside from current levels. Truist raises Cloudflare price target
• Positive Sentiment: Morgan Stanley also sharply increased its Cloudflare price target, adding to the bullish analyst backdrop and reinforcing the view that expectations for the company are improving. Morgan Stanley raises Cloudflare price target
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, while other reports noted Wall Street’s overall average recommendation remains equivalent to a Buy, supporting investor confidence in the stock. Barclays keeps buy rating on Cloudflare
• Positive Sentiment: Zacks said Cloudflare may be well poised for a surge because of solid earnings estimate revisions, which often signals improving fundamentals and stronger near-term sentiment. Zacks says Cloudflare may surge
• Neutral Sentiment: Jim Cramer commented that Cloudflare’s long-term direction looks “pretty fabulous,” but also noted the stock has been volatile, making the takeaway more of a commentary on long-term prospects than a direct catalyst. Jim Cramer comments on Cloudflare
• Negative Sentiment: One report flagged a new sell recommendation for Cloudflare, suggesting some analysts remain cautious despite the broader bullish tone. Cloudflare new sell recommendation

Insider Buying and Selling

In related news, insider Michelle Zatlyn sold 25,641 shares of the company’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $211.83, for a total value of $5,431,533.03. Following the sale, the insider directly owned 47,425 shares of the company’s stock, valued at $10,046,037.75. This represents a 35.09% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $200.61, for a total value of $2,006,100.00. Following the completion of the sale, the chief financial officer directly owned 212,014 shares in the company, valued at approximately $42,532,128.54. The trade was a 4.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 527,784 shares of company stock valued at $111,803,817 over the last 90 days. 10.89% of the stock is currently owned by company insiders.

Cloudflare Price Performance

Shares of Cloudflare stock opened at $227.91 on Friday. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The company has a market cap of $80.56 billion, a PE ratio of -911.62, a P/E/G ratio of 770.64 and a beta of 1.70. The business has a 50 day moving average of $216.10 and a 200 day moving average of $201.68. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $276.82.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million for the quarter, compared to analysts’ expectations of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm’s revenue for the quarter was up 33.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, equities research analysts forecast that Cloudflare, Inc. will post 0.01 earnings per share for the current year.

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.