Bank of America Corp DE Sells 239,487 Shares of Cloudflare, Inc. $NET

Key Points

• Bank of America reduced its Cloudflare stake by 10.4%, selling 239,487 shares and retaining 2.07 million shares worth approximately $426.6 million. Institutional investors collectively own 82.68% of Cloudflare.
• Cloudflare insiders have also been selling shares: insiders sold 549,770 shares worth roughly $124.1 million over the past 90 days, including sales by CEO Matthew Prince and insider Michelle Zatlyn under pre-arranged trading plans.
• Despite the selling, analyst sentiment remains positive. Cloudflare exceeded quarterly earnings and revenue estimates, while its consensus rating is “Moderate Buy” with an average price target of $262, below the reported share price of $279.18.

Bank of America Corp DE lowered its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 10.4% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 2,067,683 shares of the company's stock after selling 239,487 shares during the quarter. Bank of America Corp DE owned 0.58% of Cloudflare worth $426,646,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also bought and sold shares of NET. HM Payson & Co. purchased a new position in Cloudflare during the fourth quarter worth about $25,000. Wiser Advisor Group LLC purchased a new position in shares of Cloudflare during the 3rd quarter valued at $26,000. Wexford Capital LP purchased a new position in shares of Cloudflare in the third quarter worth about $30,000. Brown Brothers Harriman & Co. raised its holdings in Cloudflare by 55.4% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after acquiring an additional 56 shares during the period. Finally, Rachor Investment Advisory Services LLC purchased a new stake in Cloudflare during the 4th quarter worth about $35,000. 82.68% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Cloudflare

In related news, insider Michelle Zatlyn sold 35,080 shares of Cloudflare stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total value of $7,506,418.40. Following the transaction, the insider owned 47,425 shares in the company, valued at $10,148,001.50. This trade represents a 42.52% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 549,770 shares of company stock worth $124,090,448. 10.66% of the stock is owned by insiders.

Cloudflare Trading Down 1.5%

Shares of NET stock opened at $279.18 on Friday. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The business has a 50-day moving average price of $250.08 and a two-hundred day moving average price of $215.15. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $293.80. The firm has a market cap of $98.68 billion, a P/E ratio of -1,116.70, a price-to-earnings-growth ratio of 215.41 and a beta of 1.67.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The firm had revenue of $639.75 million for the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company's revenue was up 33.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. Equities analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Analysts Set New Price Targets

NET has been the subject of several recent analyst reports. Citizens Jmp boosted their price objective on shares of Cloudflare from $270.00 to $330.00 and gave the company a "market outperform" rating in a research note on Monday, July 20th. Zacks Research upgraded shares of Cloudflare from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. UBS Group raised their price target on shares of Cloudflare from $220.00 to $250.00 and gave the company a "neutral" rating in a report on Wednesday, June 10th. Scotiabank upgraded shares of Cloudflare from a "sector perform" rating to a "sector outperform" rating and boosted their price target for the company from $225.00 to $300.00 in a research report on Tuesday, July 7th. Finally, Raymond James Financial began coverage on shares of Cloudflare in a report on Tuesday, July 7th. They issued a "strong-buy" rating on the stock. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $262.00.

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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