Candriam S.C.A. Buys 18,241 Shares of Cloudflare, Inc. $NET

Key Points

• Candriam S.C.A. increased its Cloudflare stake by 31.3% in the third quarter, buying 18,241 shares to hold 76,607 shares valued at about $26.7 million.
• Cloudflare reported third-quarter revenue of $782.5 million, up 39.2% year over year, and adjusted EPS of $0.38—both above estimates. Its 2026 revenue and earnings outlook also exceeded consensus.
• Despite strong growth, profitability metrics remain a concern: gross margins faced pressure, free cash flow grew more slowly than revenue, and the GAAP operating loss widened; analysts’ rating and price-target changes were mixed.

Candriam S.C.A. raised its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 31.3% during the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 76,607 shares of the company's stock after purchasing an additional 18,241 shares during the quarter. Candriam S.C.A.'s holdings in Cloudflare were worth $26,701,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in NET. GK Wealth Management LLC bought a new stake in shares of Cloudflare in the third quarter valued at about $25,000. Toth Financial Advisory Corp acquired a new stake in Cloudflare during the third quarter worth about $36,000. Cornerstone Financial Management LLC grew its position in Cloudflare by 65.3% during the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock worth $29,000 after buying an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new position in Cloudflare during the second quarter valued at about $30,000. Finally, CX Institutional increased its stake in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after acquiring an additional 44 shares during the period. Institutional investors own 82.68% of the company's stock.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Third-quarter revenue rose 39.2% year over year to $782.5 million, beating estimates, while adjusted EPS of $0.38 also topped forecasts. The company cited strong enterprise demand and growing adoption of its developer platform. Cloudflare Q3 Earnings Beat Estimates on Robust Enterprise Demand
• Positive Sentiment: Cloudflare raised its 2026 outlook: full-year revenue guidance is about $3.0 billion and EPS guidance is $1.35, above consensus estimates. Fourth-quarter revenue guidance of $845 million–$846 million and EPS guidance of $0.43 also exceeded expectations. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Further signs of AI-related momentum include Cloudflare’s first revenue from AI bot traffic and a developer base that doubled to 10 million. Analysts at Wolfe Research upgraded the shares to Outperform. Why Cloudflare Stock Opened Higher Today
• Neutral Sentiment: Analyst actions were mixed: Piper Sandler reaffirmed Overweight and raised its target, while Scotiabank, Needham and Cantor Fitzgerald lowered targets; the latter firms retained positive or neutral ratings. Scotiabank rating update
• Negative Sentiment: Some profitability measures lagged growth: gross margin faced pressure, free cash flow grew more slowly than revenue, and the GAAP operating loss widened. Cloudflare’s high valuation may make the stock sensitive to any slowdown or disappointment. Cloudflare Sales Up 39%, Gross Margin Falls

Cloudflare Stock Up 0.2%

NYSE NET opened at $269.20 on Monday. The company has a current ratio of 3.80, a quick ratio of 3.80 and a debt-to-equity ratio of 3.03. The stock's 50 day moving average is $318.23 and its two-hundred day moving average is $249.77. The company has a market capitalization of $95.15 billion, a price-to-earnings ratio of -395.88, a PEG ratio of 208.12 and a beta of 1.38. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $370.35.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. Cloudflare had a negative return on equity of 6.05% and a negative net margin of 8.75%. The company had revenue of $782.51 million for the quarter, compared to analyst estimates of $737.16 million. During the same period in the prior year, the company posted $0.27 EPS. The company's revenue was up 39.2% compared to the same quarter last year. Equities analysts forecast that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 12,500 shares of the stock in a transaction on Monday, October 19th. The stock was sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the completion of the transaction, the chief financial officer directly owned 104,958 shares in the company, valued at $31,444,367.22. This represents a 10.64% decrease in their ownership of the stock. The transaction 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, insider Michelle Zatlyn sold 33,003 shares of the stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $348.29, for a total value of $11,494,614.87. Following the transaction, the insider owned 69,775 shares of the company's stock, valued at $24,301,934.75. This represents a 32.11% 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 have sold a total of 256,537 shares of company stock valued at $78,750,901 in the last 90 days. 10.66% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Needham & Company LLC reduced their price objective on Cloudflare from $380.00 to $365.00 and set a "buy" rating for the company in a research report on Friday. Fox Advisors cut Cloudflare to a "neutral" rating in a research report on Tuesday, November 3rd. Truist Financial boosted their price objective on Cloudflare from $300.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Piper Sandler restated an "overweight" rating and issued a $337.00 target price (up from $333.00) on shares of Cloudflare in a research note on Friday. Finally, Oppenheimer assumed coverage on Cloudflare in a research report on Tuesday, November 3rd. They issued an "outperform" rating for the company. Twenty-six research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $332.82.

Cloudflare Company Profile

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.

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