B. Metzler seel. Sohn & Co. AG Acquires 8,820 Shares of Cloudflare, Inc. $NET

Key Points

• B. Metzler seel. Sohn & Co. AG increased its Cloudflare position by 73.9% in the second quarter, purchasing 8,820 additional shares and bringing its holdings to 20,756 shares valued at approximately $5.1 million. Institutional investors collectively own 82.68% of Cloudflare.
• Cloudflare reported quarterly revenue of $696.06 million, up 35.9% year over year and above analyst estimates, while adjusted EPS of $0.29 exceeded expectations by $0.02. Despite strong growth, the company posted a negative net margin of 8.21%.
• Analyst sentiment remains favorable, with Cloudflare receiving a “Moderate Buy” consensus rating and an average price target of $320.19. However, insiders sold approximately $168.5 million of stock over the past 90 days, including sales by the CFO and co-founder Michelle Zatlyn under pre-arranged trading plans.

B. Metzler seel. Sohn & Co. AG raised its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 73.9% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 20,756 shares of the company's stock after purchasing an additional 8,820 shares during the quarter. B. Metzler seel. Sohn & Co. AG's holdings in Cloudflare were worth $5,091,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently made changes to their positions in the business. Geode Capital Management LLC raised its position in Cloudflare by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company's stock worth $1,184,044,000 after acquiring an additional 241,981 shares during the period. Jennison Associates LLC lifted its stake in Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after purchasing an additional 2,530,872 shares during the last quarter. First Trust Advisors LP grew its holdings in Cloudflare by 1.6% during the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company's stock valued at $792,377,000 after purchasing an additional 63,198 shares during the period. Invesco Ltd. increased its position in Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock worth $850,792,000 after buying an additional 49,485 shares during the last quarter. Finally, Norges Bank bought a new stake in shares of Cloudflare in the fourth quarter valued at $718,316,000. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Stock Performance

Cloudflare stock opened at $284.44 on Friday. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $332.22. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The firm has a market capitalization of $100.54 billion, a PE ratio of -490.41, a price-to-earnings-growth ratio of 222.95 and a beta of 1.66. The firm's 50 day simple moving average is $279.56 and its 200 day simple moving average is $234.82.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same period last year, the firm earned $0.21 EPS. The business's quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, analysts expect that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $294.63, for a total transaction of $9,723,673.89. Following the completion of the sale, the insider owned 69,775 shares in the company, valued at approximately $20,557,808.25. This trade represents a 32.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 55,000 shares of Cloudflare stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $300.30, for a total value of $16,516,500.00. Following the sale, the chief financial officer owned 113,790 shares of the company's stock, valued at approximately $34,171,137. This trade represents a 32.58% 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 sold a total of 640,531 shares of company stock worth $168,474,753 over the last ninety days. 10.66% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on NET shares. Truist Financial increased their price target on Cloudflare from $300.00 to $350.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Oppenheimer increased their target price on shares of Cloudflare from $330.00 to $380.00 and gave the stock an "outperform" rating in a research report on Friday, August 7th. BTIG Research lifted their target price on shares of Cloudflare from $314.00 to $382.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Deutsche Bank Aktiengesellschaft raised shares of Cloudflare to a "buy" rating in a research report on Tuesday, July 7th. Finally, Raymond James Financial assumed coverage on shares of Cloudflare in a research note on Tuesday, July 7th. They set a "strong-buy" rating on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Cloudflare currently 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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