ARK Investment Management LLC Sells 130,712 Shares of Cloudflare, Inc. (NYSE:NET)

Key Points

• ARK Investment Management LLC has reduced its stake in Cloudflare, Inc. by 37.4%, now holding around 0.06% of the company valued at approximately $24.7 million.
• Several other large investors have also made significant changes to their positions in Cloudflare during the first quarter, with notable increases from firms like Mather Group LLC and GPS Wealth Strategies Group LLC.
• Cloudflare's recent earnings report showed a 26.5% year-over-year revenue increase, despite missing earnings per share estimates and having a negative return on equity.

ARK Investment Management LLC reduced its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 37.4% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 219,138 shares of the company's stock after selling 130,712 shares during the period. ARK Investment Management LLC owned 0.06% of Cloudflare worth $24,695,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of the stock. Mather Group LLC. increased its holdings in shares of Cloudflare by 1,188.2% during the first quarter. Mather Group LLC. now owns 219 shares of the company's stock worth $25,000 after buying an additional 202 shares in the last quarter. NBC Securities Inc. bought a new stake in shares of Cloudflare during the first quarter valued at approximately $27,000. GPS Wealth Strategies Group LLC grew its stake in shares of Cloudflare by 213.4% during the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock valued at $29,000 after purchasing an additional 175 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its stake in shares of Cloudflare by 115.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock valued at $30,000 after purchasing an additional 142 shares during the last quarter. Finally, Global Financial Private Client LLC grew its stake in shares of Cloudflare by 38,100.0% during the first quarter. Global Financial Private Client LLC now owns 382 shares of the company's stock valued at $43,000 after purchasing an additional 381 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on NET shares. Jefferies Financial Group reduced their price target on shares of Cloudflare from $170.00 to $150.00 and set a "hold" rating on the stock in a research report on Friday, May 9th. UBS Group lifted their price target 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. Susquehanna lowered their price objective on shares of Cloudflare from $170.00 to $140.00 and set a "neutral" rating on the stock in a research note on Monday, May 12th. Robert W. Baird upped their price target on shares of Cloudflare from $148.00 to $175.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. Finally, JMP Securities increased their target price on shares of Cloudflare from $180.00 to $225.00 and gave the stock a "market outperform" rating in a research report on Monday. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, Cloudflare has an average rating of "Moderate Buy" and a consensus target price of $161.72.

Cloudflare Trading Up 1.1%

Shares of Cloudflare stock traded up $2.22 during trading on Wednesday, reaching $201.65. The company's stock had a trading volume of 1,695,327 shares, compared to its average volume of 3,687,484. Cloudflare, Inc. has a 52-week low of $69.26 and a 52-week high of $203.08. The company has a market cap of $69.89 billion, a price-to-earnings ratio of -876.74 and a beta of 1.85. The firm's 50-day moving average is $181.77 and its two-hundred day moving average is $147.40. The company has a quick ratio of 3.20, a current ratio of 3.20 and a debt-to-equity ratio of 0.90.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported $0.16 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.01). Cloudflare had a negative return on equity of 6.31% and a negative net margin of 4.62%. The company had revenue of $479.09 million during the quarter, compared to the consensus estimate of $469.49 million. During the same quarter last year, the company posted $0.16 earnings per share. The firm's revenue for the quarter was up 26.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, Director Carl Ledbetter sold 15,000 shares of the firm's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $199.85, for a total transaction of $2,997,750.00. Following the sale, the director owned 1,043,073 shares in the company, valued at approximately $208,458,139.05. This trade represents a 1.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michelle Zatlyn sold 25,641 shares of the firm's stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $190.68, for a total transaction of $4,889,225.88. Following the sale, the insider owned 6,390 shares in the company, valued at approximately $1,218,445.20. The trade was a 80.05% decrease in their position. The disclosure for this sale can be found here. Insiders sold 691,062 shares of company stock worth $121,871,367 in the last 90 days. Insiders own 10.89% of the company's stock.

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.