AXQ Capital LP Boosts Stake in Cloudflare, Inc. $NET

Key Points

• AXQ Capital LP boosted its Cloudflare stake by 264.4% in Q4, ending with 10,068 shares valued at about $1.99 million. Cloudflare now ranks as the fund’s 29th-largest holding.
• Insiders have been selling shares recently, including Michelle Zatlyn and Janel Riley, with total insider sales over the past 90 days reaching 576,464 shares worth $121.0 million.
• Cloudflare posted solid quarterly results, beating EPS and revenue estimates and lifting revenue 33.5% year over year. The stock also surged 11.6%, while analysts’ consensus remains a Moderate Buy with an average price target of $236.68.

AXQ Capital LP raised its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 264.4% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 10,068 shares of the company's stock after buying an additional 7,305 shares during the period. Cloudflare makes up about 0.4% of AXQ Capital LP's holdings, making the stock its 29th biggest holding. AXQ Capital LP's holdings in Cloudflare were worth $1,985,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in NET. Physician Wealth Advisors Inc. raised its stake in Cloudflare by 693.3% during the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after acquiring an additional 104 shares during the period. Wiser Advisor Group LLC bought a new position in Cloudflare in the 3rd quarter worth about $26,000. Westside Investment Management Inc. grew its position in Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock worth $28,000 after purchasing an additional 65 shares during the last quarter. Wexford Capital LP bought a new position in Cloudflare in the 3rd quarter worth about $30,000. Finally, Ameriflex Group Inc. grew its position in Cloudflare by 105.6% in the 3rd quarter. Ameriflex Group Inc. now owns 148 shares of the company's stock worth $32,000 after purchasing an additional 76 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $211.83, for a total value of $5,431,533.03. Following the transaction, the insider directly owned 47,425 shares in the company, valued at $10,046,037.75. The trade was a 35.09% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Janel Riley sold 3,481 shares of the company's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $193.32, for a total transaction of $672,946.92. Following the transaction, the chief accounting officer owned 49,163 shares in the company, valued at $9,504,191.16. The trade was a 6.61% 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. Over the last ninety days, insiders sold 576,464 shares of company stock worth $121,021,760. 10.89% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have commented on NET shares. Scotiabank decreased their target price on shares of Cloudflare from $255.00 to $225.00 and set a "sector perform" rating for the company in a research report on Wednesday, February 11th. KeyCorp cut shares of Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. Citigroup started coverage on shares of Cloudflare in a research report on Wednesday, April 15th. They issued a "buy" rating for the company. UBS Group restated a "neutral" rating and issued a $220.00 target price on shares of Cloudflare in a research report on Wednesday, February 11th. Finally, DZ Bank upgraded shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 target price for the company in a research report on Friday, February 13th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Cloudflare presently has an average rating of "Moderate Buy" and a consensus price target of $236.68.

Cloudflare Trading Up 11.6%

Cloudflare stock opened at $269.87 on Tuesday. The stock has a market capitalization of $95.39 billion, a PE ratio of -1,079.48 and a beta of 1.70. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $271.20. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The firm has a 50 day simple moving average of $209.52 and a 200-day simple moving average of $198.92.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. The firm had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm's revenue for the quarter was up 33.5% compared to the same quarter last year. During the same period last year, the firm posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Cloudflare 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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