Caption Management LLC Sells 101,700 Shares of Cloudflare, Inc. $NET

Key Points

• Caption Management LLC significantly reduced its stake in Cloudflare, Inc. by 94.2%, selling 101,700 shares to own only 6,300 shares worth $710,000 after the transaction.
• Despite Caption Management's sell-off, other institutional investors increased their stakes, with Dimensional Fund Advisors LP raising its share count by 5.4% and Tower Research Capital LLC TRC increasing theirs by 184.3% in the fourth quarter.
• Cloudflare's stock has received mixed ratings from analysts, with one strong buy, fifteen buys, nine holds, and three sells, leading to a consensus rating of "Moderate Buy" and a target price of $191.28.

Caption Management LLC lessened its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 94.2% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 6,300 shares of the company's stock after selling 101,700 shares during the quarter. Caption Management LLC's holdings in Cloudflare were worth $710,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the stock. Vanguard Group Inc. increased its holdings in Cloudflare by 1.8% in the first quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock valued at $3,475,011,000 after purchasing an additional 538,850 shares during the last quarter. American Century Companies Inc. increased its holdings in Cloudflare by 34.5% in the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock valued at $342,287,000 after purchasing an additional 779,819 shares during the last quarter. Northern Trust Corp increased its holdings in Cloudflare by 1.7% in the first quarter. Northern Trust Corp now owns 1,880,888 shares of the company's stock valued at $211,957,000 after purchasing an additional 31,745 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Cloudflare by 8.1% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,321,208 shares of the company's stock valued at $148,887,000 after purchasing an additional 99,448 shares during the last quarter. Finally, Raymond James Financial Inc. increased its holdings in Cloudflare by 129.7% in the first quarter. Raymond James Financial Inc. now owns 1,097,235 shares of the company's stock valued at $123,647,000 after purchasing an additional 619,526 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Cloudflare Stock Down 1.0%

Cloudflare stock traded down $1.99 during midday trading on Wednesday, reaching $206.06. The stock had a trading volume of 1,381,760 shares, compared to its average volume of 2,174,061. The firm's fifty day simple moving average is $197.41 and its 200-day simple moving average is $158.99. Cloudflare, Inc. has a 1-year low of $74.88 and a 1-year high of $219.00. The stock has a market capitalization of $71.81 billion, a P/E ratio of -606.07 and a beta of 1.95. The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.18 by $0.03. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The business had revenue of $512.32 million for the quarter, compared to analyst estimates of $501.58 million. During the same quarter last year, the firm earned $0.20 EPS. Cloudflare's revenue for the quarter was up 27.8% compared to the same quarter last year. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, analysts expect that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on NET shares. Morgan Stanley increased their price target on Cloudflare from $225.00 to $235.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Mizuho increased their price target on Cloudflare from $220.00 to $240.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Stifel Nicolaus increased their price target on Cloudflare from $175.00 to $230.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Jefferies Financial Group lowered their price target on Cloudflare from $170.00 to $150.00 and set a "hold" rating for the company in a report on Friday, May 9th. Finally, KeyCorp increased their price target on Cloudflare from $210.00 to $235.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $191.28.

Insiders Place Their Bets

In related news, CEO Matthew Prince sold 536 shares of Cloudflare stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $194.84, for a total value of $104,434.24. Following the sale, the chief executive officer owned 20,111 shares of the company's stock, valued at approximately $3,918,427.24. This trade represents a 2.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Douglas James Kramer sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The shares were sold at an average price of $198.22, for a total value of $594,660.00. Following the completion of the transaction, the insider owned 157,377 shares of the company's stock, valued at approximately $31,195,268.94. This represents a 1.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 703,063 shares of company stock worth $133,362,256 in the last 90 days. Company insiders own 10.89% of the company's stock.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.