Bank of New York Mellon Corp Trims Stock Holdings in Cloudflare, Inc. $NET

Key Points

• Bank of New York Mellon cut its Cloudflare stake by 22.4% in the fourth quarter, selling 304,337 shares and leaving it with 1,057,265 shares valued at about $208.4 million.
• Cloudflare reported better-than-expected quarterly results, with EPS of $0.25 versus $0.23 expected and revenue of $639.76 million versus $620.83 million estimated, while revenue rose 33.5% year over year.
• Several insiders sold shares, including CEO Matthew Prince and CAO Janel Riley, even as analysts maintained a Moderate Buy consensus rating and a $239.08 average price target for the stock.

Bank of New York Mellon Corp lessened its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 22.4% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 1,057,265 shares of the company's stock after selling 304,337 shares during the period. Bank of New York Mellon Corp owned about 0.30% of Cloudflare worth $208,440,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Empowered Funds LLC boosted its holdings in shares of Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock valued at $750,000 after acquiring an additional 1,696 shares during the period. Sivia Capital Partners LLC purchased a new stake in shares of Cloudflare in the second quarter valued at about $424,000. Cerity Partners LLC raised its holdings in shares of Cloudflare by 30.1% in the second quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock valued at $5,391,000 after buying an additional 6,363 shares during the last quarter. Sei Investments Co. raised its holdings in shares of Cloudflare by 40.1% in the second quarter. Sei Investments Co. now owns 329,036 shares of the company's stock valued at $64,432,000 after buying an additional 94,112 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of Cloudflare by 14.6% in the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock valued at $3,224,000 after buying an additional 2,093 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Stock Performance

NYSE:NET opened at $250.35 on Friday. 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 moving average of $213.32 and a two-hundred day moving average of $200.38. The stock has a market cap of $88.49 billion, a P/E ratio of -1,001.40 and a beta of 1.70. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $276.82.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The business's revenue was up 33.5% on a year-over-year basis. During the same period in the prior year, the business posted $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.

Insiders Place Their Bets

In other news, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $210.66, for a total value of $11,035,213.44. Following the sale, the chief executive officer owned 25,550 shares in the company, valued at approximately $5,382,363. This represents a 67.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Janel Riley sold 3,481 shares of Cloudflare stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $193.32, for a total value of $672,946.92. Following the completion of the transaction, the chief accounting officer owned 49,163 shares of the company's stock, valued at approximately $9,504,191.16. The trade was a 6.61% 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. In the last quarter, insiders have sold 527,491 shares of company stock worth $111,729,711. Company insiders own 10.89% of the company's stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on NET. Barclays reaffirmed an "overweight" rating and issued a $250.00 target price on shares of Cloudflare in a report on Monday. New Street Research set a $140.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Scotiabank cut their price target on shares of Cloudflare from $255.00 to $225.00 and set a "sector perform" rating for the company in a report on Wednesday, February 11th. KeyCorp lowered Cloudflare from an "overweight" rating to a "hold" rating in a research note on Wednesday, April 15th. Finally, Robert W. Baird set a $260.00 price target on Cloudflare and gave the stock an "outperform" rating in a report on Wednesday, February 11th. Eighteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $239.08.

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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