Stonekeep Investments LLC Buys Shares of 1,403 Cloudflare, Inc. $NET

Key Points

• Stonekeep Investments LLC has purchased 1,403 shares of Cloudflare, Inc. ($NET) valued at approximately $275,000 during the second quarter.
• A significant number of institutional investors, including GAMMA Investing LLC and American Century Companies Inc., have increased their stakes in Cloudflare, with 82.68% of the stock now held by institutional investors and hedge funds.
• Analysts have notably raised their target prices for Cloudflare, with firms like Needham & Company and Wells Fargo & Company setting targets between $240 and $250, reflecting a generally positive outlook on the company.

Stonekeep Investments LLC bought a new position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 1,403 shares of the company's stock, valued at approximately $275,000.

A number of other large investors also recently modified their holdings of the stock. Janus Henderson Group PLC lifted its holdings in Cloudflare by 2.2% in the fourth quarter. Janus Henderson Group PLC now owns 22,031 shares of the company's stock valued at $2,374,000 after buying an additional 475 shares during the period. Toronto Dominion Bank lifted its holdings in Cloudflare by 7.0% in the fourth quarter. Toronto Dominion Bank now owns 39,763 shares of the company's stock valued at $4,282,000 after buying an additional 2,605 shares during the period. Vident Advisory LLC lifted its holdings in Cloudflare by 42.6% in the fourth quarter. Vident Advisory LLC now owns 27,591 shares of the company's stock valued at $2,971,000 after buying an additional 8,239 shares during the period. Woodline Partners LP acquired a new position in Cloudflare in the fourth quarter valued at approximately $6,638,000. Finally, JT Stratford LLC acquired a new position in Cloudflare in the fourth quarter valued at approximately $305,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Cloudflare Stock Performance

Shares of NYSE NET traded up $2.81 during mid-day trading on Friday, reaching $226.38. 4,004,051 shares of the company were exchanged, compared to its average volume of 2,061,458. The company's 50-day simple moving average is $204.65 and its 200-day simple moving average is $164.83. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $78.89 billion, a P/E ratio of -665.82 and a beta of 1.95. Cloudflare, Inc. has a twelve month low of $77.80 and a twelve month high of $230.10.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.03. The company had revenue of $512.32 million during the quarter, compared to analysts' expectations of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. Cloudflare's quarterly revenue was up 27.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.20 EPS. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling at Cloudflare

In related news, CFO Thomas J. Seifert sold 59,130 shares of the firm's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the transaction, the chief financial officer directly owned 241,550 shares of the company's stock, valued at approximately $48,382,465. This trade represents a 19.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Michelle Zatlyn sold 35,100 shares of the firm's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $191.71, for a total transaction of $6,729,021.00. Following the transaction, the insider directly owned 14,575 shares in the company, valued at approximately $2,794,173.25. This represents a 70.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 665,738 shares of company stock valued at $131,968,542 in the last three months. 10.89% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

NET has been the topic of several analyst reports. DZ Bank restated a "sell" rating and issued a $170.00 price objective on shares of Cloudflare in a report on Tuesday, July 22nd. UBS Group upped their target price on shares of Cloudflare from $145.00 to $200.00 and gave the company a "neutral" rating in a research note on Thursday, July 24th. Citigroup upped their target price on shares of Cloudflare from $240.00 to $255.00 and gave the company a "buy" rating in a research note on Monday, August 18th. Scotiabank upped their target price on shares of Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a research note on Friday, August 1st. Finally, Mizuho upped their target price on shares of Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $191.28.

Cloudflare 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.