Cloudflare, Inc. $NET Holdings Boosted by Envestnet Asset Management Inc.

Key Points

• Envestnet Asset Management increased its Cloudflare stake by 2.7% in the second quarter, bringing its holdings to 294,197 shares valued at approximately $72.2 million. Institutional investors collectively own 82.68% of Cloudflare.
• Cloudflare reported quarterly revenue of $696.1 million, up 35.9% year over year and above estimates, while adjusted EPS of $0.29 exceeded the $0.27 consensus. Analysts maintain a “Moderate Buy” consensus with an average price target of $321.85.
• The stock opened at $348.41, reflecting a market capitalization of about $123.2 billion and very elevated valuation metrics, while insiders sold approximately $155.7 million in shares over the past three months. Cloudflare continues to post a negative net margin, creating valuation risk if growth slows.

Envestnet Asset Management Inc. lifted its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 2.7% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 294,197 shares of the company's stock after buying an additional 7,713 shares during the period. Envestnet Asset Management Inc. owned about 0.08% of Cloudflare worth $72,159,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the company. Cornerstone Financial Management LLC lifted its holdings in shares of Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock worth $29,000 after acquiring an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. bought a new position in shares of Cloudflare during the second quarter valued at about $30,000. CX Institutional grew its stake in shares of Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after buying an additional 44 shares during the last quarter. Cape Investment Advisory Inc. bought a new position in shares of Cloudflare during the second quarter valued at about $33,000. Finally, Ancora Advisors LLC purchased a new position in shares of Cloudflare in the second quarter worth about $33,000. Institutional investors own 82.68% of the company's stock.

Cloudflare Price Performance

Shares of NET opened at $348.41 on Friday. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $367.43. The firm's 50-day simple moving average is $299.84 and its two-hundred day simple moving average is $250.35. The stock has a market cap of $123.15 billion, a PE ratio of -600.70, a price-to-earnings-growth ratio of 277.59 and a beta of 1.66. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The company had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. During the same quarter in the prior year, the business posted $0.21 EPS. The firm's quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Cloudflare

In related news, CFO Thomas Seifert sold 10,000 shares of Cloudflare stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $332.46, for a total value of $3,324,600.00. Following the completion of the sale, the chief financial officer directly owned 107,902 shares in the company, valued at approximately $35,873,098.92. This trade represents a 8.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 2,538 shares of the business's stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $304.68, for a total value of $773,277.84. Following the completion of the transaction, the insider directly owned 112,082 shares of the company's stock, valued at approximately $34,149,143.76. This trade represents a 2.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 557,674 shares of company stock valued at $155,738,054 over the last three months. 10.66% of the stock is owned by insiders.

Wall Street Analyst Weigh In

NET has been the subject of a number of analyst reports. New Street Research reissued a "market outperform" rating on shares of Cloudflare in a research note on Monday, June 15th. Guggenheim lifted their target price on shares of Cloudflare from $140.00 to $160.00 and gave the stock a "sell" rating in a research note on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a report on Friday, July 17th. Wells Fargo & Company upped their price target on shares of Cloudflare from $300.00 to $380.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Finally, Truist Financial increased their price target on shares of Cloudflare from $300.00 to $350.00 and gave the company a "buy" rating in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat, Cloudflare presently has a consensus rating of "Moderate Buy" and a consensus target price of $321.85.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare launched granular AI crawler controls, including a “Disallow AI Training” setting and an “Accountable” designation for crawlers that identify themselves and follow publisher preferences. The tools could strengthen Cloudflare’s strategic role in managing how websites interact with AI search, training and agent platforms. Cloudflare AI Crawler Controls
• Positive Sentiment: Cloudflare’s unified platform is reportedly helping it win larger enterprise deals as customers consolidate security, networking and developer services with one provider. This supports the long-term growth case and may increase revenue per customer. Cloudflare Unified Platform Strategy
• Positive Sentiment: Cloudflare received some sector support from a broader AI-infrastructure rally after Akamai announced an $11.6 billion cloud commitment from Anthropic. Investors may view Cloudflare as another beneficiary of rising demand for AI connectivity, security and edge infrastructure. Akamai Anthropic Cloud Deal
• Neutral Sentiment: Cloudflare’s latest reported quarter showed strong fundamentals, with revenue up 35.9% year over year to $696.1 million and EPS of $0.29, ahead of the $0.27 consensus estimate. However, the stock’s recent 30-day and year-to-date gains have raised expectations for continued rapid execution.
• Negative Sentiment: BUFFALO Mid Cap Discovery Fund said its underweight position in Cloudflare created a relative performance headwind. The disclosure highlights that some active managers remain cautious even as the stock rallies. BUFFALO Fund Cloudflare Position
• Negative Sentiment: Valuation is a significant risk: Cloudflare’s market capitalization is approximately $123 billion, while its reported valuation metrics remain extremely elevated and the company continues to post a negative net margin. Any slowdown in growth could prompt further multiple compression.
• Negative Sentiment: Director Carl Ledbetter sold 5,000 shares for roughly $1.8 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 0.57%, limiting its significance, but repeated insider selling can add pressure to sentiment. Cloudflare Director Share Sale

Cloudflare Profile

Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.

The company's offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.

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