Bearing Point Capital LLC Buys 4,469 Shares of Cloudflare, Inc. $NET

Key Points

• Bearing Point Capital LLC increased its Cloudflare stake by 11.2% in the fourth quarter, buying 4,469 more shares and bringing its total to 44,539 shares worth about $8.78 million.
• Cloudflare beat earnings and revenue expectations in its latest quarterly report, posting EPS of $0.25 on revenue of $639.76 million, with revenue up 33.5% year over year.
• Despite solid operating results, insider selling has been notable, including recent sales by Michelle Zatlyn and CEO Matthew Prince; meanwhile, analysts currently rate the stock a consensus Moderate Buy with a $236.68 price target.

Bearing Point Capital LLC grew its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 11.2% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 44,539 shares of the company's stock after acquiring an additional 4,469 shares during the quarter. Cloudflare comprises approximately 1.4% of Bearing Point Capital LLC's portfolio, making the stock its 22nd biggest position. Bearing Point Capital LLC's holdings in Cloudflare were worth $8,781,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Physician Wealth Advisors Inc. increased its holdings in shares of Cloudflare by 693.3% during the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock valued at $26,000 after acquiring an additional 104 shares in the last quarter. Wiser Advisor Group LLC bought a new position in shares of Cloudflare during the third quarter valued at $26,000. Westside Investment Management Inc. increased its holdings in shares of Cloudflare by 100.0% during the third quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after acquiring an additional 65 shares in the last quarter. Wexford Capital LP bought a new position in shares of Cloudflare during the third quarter valued at $30,000. Finally, Ameriflex Group Inc. increased its holdings in shares of Cloudflare by 105.6% during the third quarter. Ameriflex Group Inc. now owns 148 shares of the company's stock valued at $32,000 after acquiring an additional 76 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Trading Up 6.0%

Shares of NYSE:NET opened at $241.82 on Friday. The stock has a market capitalization of $85.48 billion, a price-to-earnings ratio of -967.27 and a beta of 1.67. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The stock's 50-day simple moving average is $208.57 and its two-hundred day simple moving average is $198.97. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. The business had revenue of $639.76 million for 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 for the quarter was up 33.5% on a year-over-year basis. 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.

Insider Activity

In other Cloudflare news, insider Michelle Zatlyn sold 35,080 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $213.98, for a total value of $7,506,418.40. Following the transaction, the insider directly owned 47,425 shares of the company's stock, valued at approximately $10,148,001.50. This trade represents a 42.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $209.08, for a total value of $10,952,446.72. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 585,862 shares of company stock worth $121,988,011 over the last three months. Insiders own 10.89% of the company's stock.

Analyst Ratings Changes

NET has been the subject of several analyst reports. UBS Group restated a "neutral" rating and set a $220.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Scotiabank dropped their price objective on Cloudflare from $255.00 to $225.00 and set a "sector perform" rating on the stock in a research report on Wednesday, February 11th. Wells Fargo & Company increased their price objective on Cloudflare from $265.00 to $270.00 and gave the company an "overweight" rating in a research report on Wednesday, February 11th. Stifel Nicolaus set a $260.00 price objective on Cloudflare in a research report on Friday, May 8th. Finally, DZ Bank raised Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price objective on the stock 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 given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $236.68.

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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