Assenagon Asset Management S.A. Buys 31,177 Shares of Cloudflare, Inc. $NET

Key Points

• Assenagon Asset Management increased its Cloudflare stake by 324.8% in the second quarter, buying 31,177 additional shares to hold 40,776 shares worth approximately $10 million. Institutional investors collectively own 82.68% of Cloudflare.
• Cloudflare reported strong second-quarter results, with revenue rising 35.9% year over year to $696.1 million and adjusted EPS of $0.29, beating estimates. Management raised its third-quarter and full-year 2026 revenue outlook, while analysts maintain a broadly positive view with an average “Moderate Buy” rating.
• The company’s AI and government-services expansion supports its growth outlook, but investors face risks from a proposed $2.175 billion convertible-notes offering, potential dilution, elevated valuation, and substantial insider selling during the past quarter.

Assenagon Asset Management S.A. boosted its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 324.8% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 40,776 shares of the company's stock after acquiring an additional 31,177 shares during the period. Assenagon Asset Management S.A.'s holdings in Cloudflare were worth $10,002,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the company. HM Payson & Co. bought a new stake in Cloudflare in the fourth quarter worth $25,000. Wiser Advisor Group LLC bought a new position in shares of Cloudflare during the third quarter valued at about $26,000. Wexford Capital LP bought a new position in shares of Cloudflare during the third quarter valued at about $30,000. CX Institutional increased its holdings in shares of Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after buying an additional 44 shares during the period. Finally, Brown Brothers Harriman & Co. increased its holdings in shares of Cloudflare by 55.4% in the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock worth $34,000 after buying an additional 56 shares during the period. Institutional investors own 82.68% of the company's stock.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong growth and raised outlook: Cloudflare reported second-quarter revenue of $696.1 million, up 35.9% year over year, and adjusted EPS of $0.29 versus the $0.27 consensus estimate. Management also raised its third-quarter and full-year 2026 revenue outlook, supporting the case for continued growth. Susquehanna hikes price target on Cloudflare after Q2 results
• Positive Sentiment: AI opportunity is attracting investors: Cloudflare is positioning its network, developer platform and security tools as infrastructure for AI agents. New offerings include Cloudflare OS, an identity-aware AI Gateway, AI governance tools, an AEO Visibility Dashboard and Cloudflare Wallets. The strategy has prompted several analysts to raise their price targets, while Ark Invest’s Cathie Wood argued that Wall Street may be underestimating the company’s AI potential. Cloudflare expands its AI agent platform
• Positive Sentiment: Government-contract opportunity expanded: Cloudflare for Government received FedRAMP High certification and GovRAMP Moderate authorization. These approvals could improve its ability to sell security, performance, AI and developer services to federal, state and local governments and other highly regulated organizations. Cloudflare achieves FedRAMP High authorization
• Neutral Sentiment: Speculative SpaceX connection: Elon Musk reportedly reviewed a Cloudflare proposal addressing AI-related traffic challenges for Starlink, but no partnership or commercial agreement has been announced. Potential SpaceX-Cloudflare partnership
• Negative Sentiment: Financing and insider-sale concerns: Cloudflare proposed a $2.175 billion offering of convertible senior notes due 2031, increasing financial obligations and potentially creating future share dilution. Separately, the CFO sold approximately $16.5 million of stock. Susquehanna raised its target to $300 but retained a neutral rating, implying limited upside at the prevailing valuation. Cloudflare announces proposed convertible-note offering

Cloudflare Stock Performance

Shares of NET opened at $309.98 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 business's 50 day moving average price is $257.82 and its 200-day moving average price is $220.02. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $324.73. The stock has a market cap of $109.57 billion, a P/E ratio of -534.45, a P/E/G ratio of 207.29 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.29 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. The firm had revenue of $696.06 million for the quarter, compared to analysts' expectations of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The company's quarterly revenue was up 35.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.21 earnings per share. Equities research analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Matthew Prince sold 33,631 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $296.10, for a total transaction of $9,958,139.10. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $277.74, for a total transaction of $36,939.42. Following the sale, the director owned 10,632 shares in the company, valued at approximately $2,952,931.68. The trade was a 1.24% 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 a total of 749,532 shares of company stock valued at $183,882,628 in the last quarter. 10.66% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts have weighed in on NET shares. UBS Group boosted their price objective on Cloudflare from $250.00 to $350.00 and gave the company a "neutral" rating in a research report on Friday. The Goldman Sachs Group restated a "buy" rating and issued a $389.00 target price on shares of Cloudflare in a report on Friday. Citigroup lifted their target price on shares of Cloudflare from $265.00 to $400.00 and gave the stock a "buy" rating in a research note on Monday. Zacks Research upgraded shares of Cloudflare from a "hold" rating to a "strong-buy" rating in a report on Monday, July 20th. Finally, Raymond James Financial started coverage on shares of Cloudflare in a research report on Tuesday, July 7th. They set a "strong-buy" rating for the company. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Cloudflare presently has an average rating of "Moderate Buy" and an average price target of $320.19.

Cloudflare Company Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.

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