Capital International Inc. CA Sells 17,053 Shares of Cloudflare, Inc. $NET

Key Points

• Capital International Inc. CA reduced its Cloudflare stake by 12% in the fourth quarter, selling 17,053 shares and leaving it with 125,597 shares valued at about $24.8 million.
• Other institutions were active in NET as well, with several funds adding shares and 82.68% of the stock now held by institutional investors.
• Cloudflare reported stronger-than-expected quarterly results, beating EPS and revenue estimates, while analysts remain moderately bullish overall with an average target price of $239.08.

Capital International Inc. CA trimmed its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 12.0% in the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 125,597 shares of the company's stock after selling 17,053 shares during the period. Capital International Inc. CA's holdings in Cloudflare were worth $24,761,000 as of its most recent SEC filing.

Several other large investors also recently added to or reduced their stakes in the business. Los Angeles Capital Management LLC grew its position in Cloudflare by 40.5% in the fourth quarter. Los Angeles Capital Management LLC now owns 251,529 shares of the company's stock worth $49,589,000 after acquiring an additional 72,555 shares in the last quarter. Cookson Peirce & Co. Inc. bought a new stake in Cloudflare in the fourth quarter worth approximately $11,043,000. Havemeyer Place LP bought a new stake in Cloudflare in the fourth quarter worth approximately $468,000. BI Asset Management Fondsmaeglerselskab A S grew its position in Cloudflare by 2.3% in the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 15,385 shares of the company's stock worth $3,033,000 after acquiring an additional 348 shares in the last quarter. Finally, Pinebridge Investments LLC bought a new stake in Cloudflare in the fourth quarter worth approximately $36,241,000. 82.68% of the stock is owned by institutional investors.

Insider Buying and Selling at Cloudflare

In related news, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $210.02, for a total transaction of $11,001,687.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the company's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the transaction, the insider owned 47,425 shares of the company's stock, valued at approximately $10,148,001.50. The trade was a 42.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 527,491 shares of company stock valued at $111,729,711. Corporate insiders own 10.89% of the company's stock.

Wall Street Analysts Forecast Growth

NET has been the subject of several recent research reports. Zacks Research raised shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research report on Friday, March 13th. Guggenheim boosted their price objective on shares of Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a research note on Wednesday, February 11th. New Street Research set a $140.00 price objective on shares of Cloudflare in a research note on Wednesday, February 11th. UBS Group restated a "neutral" rating and issued a $220.00 price objective on shares of Cloudflare in a research note on Wednesday, February 11th. Finally, Piper Sandler restated an "overweight" rating and issued a $250.00 price objective (up from $222.00) on shares of Cloudflare in a research note on Friday, May 8th. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $239.08.

Cloudflare Price Performance

NYSE:NET opened at $250.35 on Monday. The stock has a market cap of $88.49 billion, a P/E ratio of -1,001.40, a PEG ratio of 4,194.92 and a beta of 1.70. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $276.82. The company has a fifty day moving average price of $213.32 and a 200 day moving average price of $200.36. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96.

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 firm had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business's quarterly revenue was up 33.5% compared to the same quarter last year. 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.

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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