AEGON ASSET MANAGEMENT UK Plc Cuts Stock Position in Cloudflare, Inc. $NET

Key Points

• AEGON ASSET MANAGEMENT UK Plc reduced its stake in Cloudflare, Inc. by 9.9% during the second quarter, now holding approximately $42.27 million worth of shares.
• Cloudflare reported $512.32 million in revenue for the last quarter, surpassing expectations and showing a 27.8% year-over-year increase in revenue.
• Insider selling activity has been notable, with significant sales by the CFO and another insider, resulting in a combined decrease in their ownerships by over 12% and 70% respectively.

AEGON ASSET MANAGEMENT UK Plc lessened its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 9.9% in the second quarter, according to its most recent filing with the SEC. The institutional investor owned 216,081 shares of the company's stock after selling 23,782 shares during the period. AEGON ASSET MANAGEMENT UK Plc owned 0.06% of Cloudflare worth $42,272,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in NET. Mather Group LLC. grew its position in shares of Cloudflare by 1,188.2% during the first quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after purchasing an additional 202 shares in the last quarter. Hilltop National Bank purchased a new position in shares of Cloudflare during the second quarter valued at about $36,000. Ameritas Advisory Services LLC purchased a new position in shares of Cloudflare during the second quarter valued at about $39,000. Fifth Third Bancorp grew its position in shares of Cloudflare by 88.5% during the first quarter. Fifth Third Bancorp now owns 441 shares of the company's stock valued at $50,000 after purchasing an additional 207 shares in the last quarter. Finally, ORG Partners LLC grew its position in shares of Cloudflare by 264.8% during the first quarter. ORG Partners LLC now owns 445 shares of the company's stock valued at $51,000 after purchasing an additional 323 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Down 2.2%

Shares of NYSE NET opened at $217.74 on Wednesday. The firm has a 50-day simple moving average of $212.47 and a two-hundred day simple moving average of $176.61. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14. Cloudflare, Inc. has a 1 year low of $85.60 and a 1 year high of $230.10. The company has a market cap of $75.88 billion, a P/E ratio of -640.41 and a beta of 1.99.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.03. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The firm had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. During the same quarter in the previous year, the firm posted $0.20 earnings per share. The company's revenue was up 27.8% on a year-over-year basis. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Research analysts anticipate 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 34,270 shares of Cloudflare stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $200.17, for a total transaction of $6,859,825.90. Following the transaction, the chief financial officer directly owned 241,550 shares of the company's stock, valued at $48,351,063.50. This trade represents a 12.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Michelle Zatlyn sold 35,100 shares of Cloudflare stock in a transaction that occurred on Thursday, August 21st. The shares were 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. The trade was a 70.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 647,893 shares of company stock valued at $132,718,279. 10.89% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

NET has been the subject of a number of research analyst reports. Bank of America raised their price objective on Cloudflare from $235.00 to $240.00 and gave the company a "buy" rating in a research report on Friday, August 1st. DZ Bank reaffirmed a "sell" rating and issued a $170.00 price target on shares of Cloudflare in a report on Tuesday, July 22nd. Stifel Nicolaus increased their price target on shares of Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a report on Friday, August 1st. JMP Securities increased their price target on shares of Cloudflare from $180.00 to $225.00 and gave the company a "market outperform" rating in a report on Monday, July 28th. Finally, Guggenheim increased their price target on shares of Cloudflare from $70.00 to $111.00 and gave the company a "sell" rating in a report on Friday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $196.54.

About Cloudflare

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.

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