8,113 Shares of Cloudflare, Inc. $NET Bought by Westwind Capital

Key Points

• Westwind Capital acquired 8,113 Cloudflare shares worth approximately $2.8 million during the third quarter, making NET 0.7% of its portfolio. Institutional investors collectively own 82.68% of the company.
• Cloudflare reported quarterly revenue of $696.1 million, up 35.9% year over year, and EPS of $0.29, exceeding analyst expectations. The stock traded at $341.23, near its 12-month high, with a market capitalization of $120.6 billion.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $326.33, but the company’s extremely high valuation and substantial recent insider selling pose risks for investors.

Westwind Capital bought a new position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 8,113 shares of the company's stock, valued at approximately $2,817,000. Cloudflare comprises 0.7% of Westwind Capital's holdings, making the stock its 29th largest holding.

A number of other institutional investors and hedge funds also recently modified their holdings of NET. CX Institutional grew its holdings in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after purchasing an additional 44 shares during the period. Wealth Architects LLC grew its holdings in shares of Cloudflare by 4.6% in the 2nd quarter. Wealth Architects LLC now owns 1,022 shares of the company's stock valued at $251,000 after buying an additional 45 shares during the period. Cornerstone Financial Management LLC increased its position in shares of Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock valued at $29,000 after buying an additional 47 shares in the last quarter. Forum Financial Management LP raised its stake in Cloudflare by 3.5% during the 2nd quarter. Forum Financial Management LP now owns 1,498 shares of the company's stock worth $367,000 after buying an additional 50 shares during the period. Finally, Quadrant Private Wealth Management LLC grew its stake in Cloudflare by 3.2% in the first quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company's stock valued at $341,000 after acquiring an additional 51 shares during the period. 82.68% of the stock is owned by institutional investors.

Cloudflare Stock Down 0.5%

NET stock traded down $1.75 during midday trading on Thursday, hitting $341.23. The company's stock had a trading volume of 2,439,476 shares, compared to its average volume of 4,096,033. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. Cloudflare, Inc. has a twelve month low of $158.83 and a twelve month high of $370.35. The company's fifty day moving average price is $313.26 and its 200 day moving average price is $258.43. The stock has a market capitalization of $120.61 billion, a P/E ratio of -588.32, a PEG ratio of 282.35 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The business had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. During the same quarter in the previous year, the business earned $0.21 earnings per share. Cloudflare's quarterly revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, equities research analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current year.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare is expanding its strategic position in security and data infrastructure. The company became a public Certificate Authority, began issuing post-quantum-ready TLS certificates, launched Basin—an open-source serverless data platform for analytics and AI workloads—and partnered with Deutsche Telekom on enterprise security and connectivity services in Europe. These initiatives could broaden Cloudflare’s addressable market and create new sources of long-term growth. What Could Cloudflare New Trust and Data Push Mean for Its Future?
• Positive Sentiment: AI traffic remains a central bullish catalyst. Cloudflare is benefiting from the increasing use of AI agents and related internet traffic, supporting the view that its network, security and performance products could see sustained demand. The company’s Basin platform is also designed to support AI data workloads. Why Cloudflare Stock Rallied Nearly 14% in September
• Neutral Sentiment: Brokerage analysts maintain an average Buy-equivalent recommendation for NET, but the usefulness of that consensus may be limited because analyst ratings are often optimistic for high-growth technology stocks. Brokers Suggest Investing in Cloudflare
• Negative Sentiment: Valuation is creating significant investor risk. After roughly quadrupling over three years and trading near its 12-month high, Cloudflare’s share price appears to assume very strong future sales and profit growth. Commentary from Jim Cramer similarly recognized the AI opportunity while cautioning against buying at the current valuation. Cloudflare Stock May Be Overvalued
• Negative Sentiment: Repeated insider sales may weigh on sentiment. Co-founder and co-CEO Michelle Zatlyn sold 33,003 shares at an average price of $348.29 on October 7, following an equivalent sale on October 5. Both transactions were conducted under a pre-arranged Rule 10b5-1 plan, reducing the direct signaling value, but together lowered her ownership by about 32%. Cloudflare Insider Trading

Analyst Ratings Changes

A number of research firms have recently commented on NET. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cloudflare in a research report on Friday, July 17th. Barclays lifted their price target on shares of Cloudflare from $300.00 to $355.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Scotiabank increased their price objective on shares of Cloudflare from $300.00 to $390.00 and gave the stock an "outperform" rating in a research report on Friday, August 7th. Oppenheimer upped their target price on shares of Cloudflare from $330.00 to $380.00 and gave the stock an "outperform" rating in a research note on Friday, August 7th. Finally, Citigroup restated a "market outperform" rating on shares of Cloudflare in a report on Monday, August 31st. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have given a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, Cloudflare currently has a consensus rating of "Moderate Buy" and an average price target of $326.33.

Insiders Place Their Bets

In other news, CFO Thomas Seifert sold 55,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the sale, the chief financial officer owned 113,790 shares in the company, valued at $34,171,137. This represents a 32.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $294.63, for a total value of $9,723,673.89. Following the completion of the sale, the insider directly owned 69,775 shares of the company's stock, valued at approximately $20,557,808.25. The trade was a 32.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 458,839 shares of company stock valued at $138,172,392 in the last 90 days. 10.66% of the stock is currently owned by insiders.

Cloudflare Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.

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