Bessemer Group Inc. Trims Stock Position in Cloudflare, Inc. $NET

Key Points

• Bessemer Group Inc. reduced its Cloudflare stake by 4.4% in the fourth quarter, selling 16,340 shares and ending with 358,681 shares worth about $70.7 million.
• Analysts remain broadly positive on Cloudflare, with 18 Buy ratings, 7 Hold ratings, and 3 Sell ratings; the consensus price target is $236.68.
• Cloudflare reported strong quarterly results, including revenue of $639.76 million, up 33.5% year over year, and EPS of $0.25, ahead of estimates.

Bessemer Group Inc. lessened its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 4.4% during the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 358,681 shares of the company's stock after selling 16,340 shares during the period. Bessemer Group Inc. owned 0.10% of Cloudflare worth $70,714,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently modified their holdings of NET. Physician Wealth Advisors Inc. lifted its holdings in shares of Cloudflare by 693.3% in the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock valued at $26,000 after purchasing an additional 104 shares in the last quarter. Wiser Advisor Group LLC purchased a new stake in shares of Cloudflare in the third quarter valued at about $26,000. Westside Investment Management Inc. lifted its holdings in shares of Cloudflare by 100.0% in the third quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after purchasing an additional 65 shares in the last quarter. Wexford Capital LP purchased a new stake in shares of Cloudflare in the third quarter valued at about $30,000. Finally, Cloud Capital Management LLC purchased a new stake in shares of Cloudflare in the third quarter valued at about $31,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on NET shares. New Street Research set a $140.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Guggenheim boosted their price objective on shares of Cloudflare from $117.00 to $140.00 and gave the company a "sell" rating in a research report on Wednesday, February 11th. BTIG Research reissued a "buy" rating and issued a $243.00 price objective on shares of Cloudflare in a research report on Friday, May 8th. Needham & Company LLC cut their price objective on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating for the company in a research report on Wednesday, February 11th. Finally, Robert W. Baird set a $260.00 price target on shares of Cloudflare and gave the stock an "outperform" rating in a research 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 issued a Sell rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $236.68.

Insider Activity at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 10,000 shares of the business's stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $197.98, for a total transaction of $1,979,800.00. Following the completion of the sale, the chief financial officer directly owned 221,681 shares in the company, valued at $43,888,404.38. The trade was a 4.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the firm's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $221.58, for a total transaction of $558,381.60. Following the sale, the director directly owned 494,067 shares of the company's stock, valued at approximately $109,475,365.86. The trade was a 0.51% 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. Insiders sold 636,246 shares of company stock valued at $125,320,379 over the last quarter. Company insiders own 10.89% of the company's stock.

Cloudflare Price Performance

NET opened at $197.14 on Friday. The company has a quick ratio of 1.98, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. Cloudflare, Inc. has a 52-week low of $152.41 and a 52-week high of $260.00. The company has a 50 day moving average of $206.94 and a two-hundred day moving average of $200.09. The company has a market cap of $69.68 billion, a P/E ratio of -788.54 and a beta of 1.67.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data 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. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The company had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. During the same period in the previous year, the firm earned $0.16 earnings per share. Cloudflare's revenue for the quarter was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. On average, analysts expect that Cloudflare, Inc. will post -0.1 earnings per share for the current year.

About Cloudflare

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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