Castle Rock Wealth Management LLC Sells 12,269 Shares of Cloudflare, Inc. $NET

Castle Rock Wealth Management LLC lowered its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 93.3% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 882 shares of the company's stock after selling 12,269 shares during the quarter. Castle Rock Wealth Management LLC's holdings in Cloudflare were worth $217,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of NET. Empowered Funds LLC grew its holdings in Cloudflare by 34.2% during the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock worth $750,000 after purchasing an additional 1,696 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Cloudflare in the second quarter valued at approximately $424,000. Cerity Partners LLC lifted its position in shares of Cloudflare by 30.1% in the second quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock valued at $5,391,000 after buying an additional 6,363 shares during the last quarter. Sei Investments Co. boosted its stake in shares of Cloudflare by 40.1% during the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company's stock worth $64,432,000 after acquiring an additional 94,112 shares during the period. Finally, The Manufacturers Life Insurance Company boosted its stake in shares of Cloudflare by 14.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock worth $3,224,000 after acquiring an additional 2,093 shares during the period. Institutional investors own 82.68% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. New Street Research restated a "market outperform" rating on shares of Cloudflare in a research note on Monday, June 15th. Stifel Nicolaus set a $260.00 price objective on shares of Cloudflare in a report on Friday, May 8th. Jefferies Financial Group set a $350.00 price objective on shares of Cloudflare in a report on Friday. Deutsche Bank Aktiengesellschaft raised shares of Cloudflare to a "buy" rating in a research report on Tuesday, July 7th. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating and set a $250.00 target price on shares of Cloudflare in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $311.48.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results beat expectations. Revenue rose 35.9% year over year to $696.1 million, exceeding the approximately $664.7 million consensus estimate. Adjusted EPS was $0.29 versus expectations of $0.27, supported by large-customer additions, Workers adoption and improved execution. Cloudflare Q2 earnings report
• Positive Sentiment: Cloudflare raised its forecast. Third-quarter guidance calls for approximately $736 million-$737 million in revenue and $0.34 EPS, above analyst estimates. Full-year 2026 revenue guidance was lifted to roughly $2.864 billion-$2.870 billion, while EPS guidance increased to $1.25-$1.26. Management cited resilient AI-agent demand across its network. Reuters outlook report
• Positive Sentiment: Analysts responded with higher targets. Citizens JMP raised its target to $394, while Oppenheimer and Needham increased targets to $380. BTIG, RBC, Piper Sandler and Truist also raised targets and maintained bullish ratings, signaling confidence in Cloudflare’s AI growth opportunity.
• Positive Sentiment: New AI products add potential growth avenues. Cloudflare launched Kitesurf, a cloud-hosted browser designed for AI agents, and an AEO Visibility Dashboard that helps brands track recommendations from AI assistants. TechCrunch Kitesurf report
• Neutral Sentiment: Valuation and volatility remain elevated. The rally has pushed Cloudflare near record levels, leaving the stock dependent on continued high growth, margin improvement and successful AI monetization.
• Negative Sentiment: Insider selling is a modest sentiment risk. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter sold shares under pre-arranged Rule 10b5-1 plans. These transactions may concern investors but do not necessarily indicate weakening business fundamentals.

Insider Buying and Selling at Cloudflare

In other news, Director Mark J. Hawkins sold 133 shares of Cloudflare stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $277.74, for a total value of $36,939.42. Following the completion of the sale, the director directly owned 10,632 shares in the company, valued at approximately $2,952,931.68. The trade was a 1.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 33,631 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $296.10, for a total value of $9,958,139.10. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 749,532 shares of company stock worth $183,882,628. 10.66% of the stock is currently owned by company insiders.

Cloudflare Stock Performance

NET opened at $301.00 on Friday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The business has a fifty day simple moving average of $257.02 and a 200 day simple moving average of $218.84. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $324.73. The company has a market capitalization of $106.39 billion, a PE ratio of -518.96, a price-to-earnings-growth ratio of 212.72 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.99% and a negative net margin of 8.21%.The company had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same quarter last year, the firm earned $0.21 earnings per share. The company's revenue was up 35.9% on a year-over-year basis. Research analysts expect that Cloudflare, Inc. will post 0.03 EPS 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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