AEGON ASSET MANAGEMENT UK Plc Buys 44,354 Shares of Cloudflare, Inc. $NET

Key Points

• AEGON Asset Management UK increased its Cloudflare stake by 23% in the third quarter, buying 44,354 shares to hold 237,582 shares worth about $82.5 million.
• Cloudflare reported Q3 revenue of $782.5 million, up 39.2% year over year, and adjusted EPS of $0.38; both exceeded analyst expectations. Its next-quarter revenue forecast also topped estimates, and management raised its 2026 outlook.
• Analyst sentiment was generally positive: 25 analysts rated the stock Buy, seven Hold and four Sell, for a consensus “Moderate Buy” rating and an average price target of $335.33.

AEGON ASSET MANAGEMENT UK Plc lifted its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 23.0% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 237,582 shares of the company's stock after buying an additional 44,354 shares during the quarter. Cloudflare comprises approximately 0.8% of AEGON ASSET MANAGEMENT UK Plc's holdings, making the stock its 28th largest position. AEGON ASSET MANAGEMENT UK Plc owned 0.07% of Cloudflare worth $82,507,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also modified their holdings of the company. Jennison Associates LLC grew its stake in Cloudflare by 135.8% in the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after buying an additional 2,530,872 shares during the last quarter. Amundi increased its stake in shares of Cloudflare by 2.0% in the first quarter. Amundi now owns 1,707,256 shares of the company's stock worth $352,275,000 after purchasing an additional 32,804 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Cloudflare by 4.9% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,046,812 shares of the company's stock worth $363,537,000 after purchasing an additional 48,956 shares during the last quarter. National Pension Service lifted its position in shares of Cloudflare by 1.6% during the 2nd quarter. National Pension Service now owns 959,987 shares of the company's stock worth $235,466,000 after purchasing an additional 15,546 shares during the last quarter. Finally, Swiss National Bank lifted its position in shares of Cloudflare by 8.1% during the 1st quarter. Swiss National Bank now owns 927,200 shares of the company's stock worth $191,318,000 after purchasing an additional 69,800 shares during the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several brokerages recently weighed in on NET. Barclays increased their target price on Cloudflare from $355.00 to $400.00 and gave the company an "overweight" rating in a research note on Monday, October 12th. KeyCorp lifted their price target on Cloudflare from $300.00 to $375.00 and gave the stock an "overweight" rating in a research report on Friday, August 7th. Craig Hallum upgraded Cloudflare to a "buy" rating in a report on Tuesday, November 3rd. The Goldman Sachs Group set a $420.00 price objective on Cloudflare and gave the company a "buy" rating in a research report on Friday. Finally, Sanford C. Bernstein increased their price objective on Cloudflare from $181.00 to $245.00 and gave the company a "market perform" rating in a research report on Thursday, October 29th. Twenty-five analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, Cloudflare has a consensus rating of "Moderate Buy" and an average price target of $335.33.

Insider Buying and Selling

In related news, CFO Thomas Seifert sold 12,500 shares of the business's stock in a transaction on Monday, October 19th. The stock was sold at an average price of $299.59, for a total value of $3,744,875.00. Following the sale, the chief financial officer owned 104,958 shares of the company's stock, valued at $31,444,367.22. The trade was a 10.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the company's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total value of $9,156,022.29. Following the completion of the sale, the insider owned 69,775 shares in the company, valued at $19,357,678.25. This trade represents a 32.11% 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 256,537 shares of company stock worth $78,750,901 in the last 90 days. 10.66% of the stock is owned by company insiders.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q3 revenue rose 39.2% year over year to $782.5 million, beating expectations, while non-GAAP EPS of $0.38 also topped consensus. The company’s next-quarter revenue forecast was above analysts’ estimates, and management raised its 2026 outlook. NET Q3 2026 deep dive
• Positive Sentiment: Management cited strength in developer and security demand, including AI-related usage, and moved its target for GAAP profitability forward to Q4 2026. That could reassure investors that growth may translate into improved earnings. Cloudflare Q3 earnings call
• Neutral Sentiment: Analyst actions were mixed: Wolfe Research upgraded Cloudflare to Outperform, while Scotiabank, Needham and Cantor Fitzgerald lowered price targets. The differing views underscore uncertainty about how much of the strong outlook is already reflected in the shares. Wolfe Research upgrade Scotiabank price target
• Negative Sentiment: Reports flagged a growing margin challenge even as revenue growth accelerated. Cloudflare’s high valuation may also leave the stock vulnerable if growth or progress toward profitability disappoints. Cloudflare's best quarter ever hit with a growing margin challenge Cloudflare sell-off and valuation

Cloudflare Stock Up 10.0%

NYSE NET opened at $295.56 on Tuesday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. The stock's 50 day moving average is $318.15 and its two-hundred day moving average is $250.39. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $370.35.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The company had revenue of $782.51 million for the quarter, compared to analyst estimates of $737.16 million. During the same period in the prior year, the company posted $0.27 EPS. The company's revenue was up 39.2% compared to the same quarter last year. As a group, equities analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current year.

Cloudflare Profile

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.

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