Cloudflare, Inc. $NET Holdings Lessened by Capelight Capital Asset Management LP

Key Points

• Capelight Capital cut its Cloudflare stake by 11.1% in Q1, selling 5,000 shares and leaving it with 40,000 shares valued at about $8.25 million. Cloudflare remains its 5th-largest holding.
• Insider selling has been notable, including CEO Matthew Prince’s sale of 52,384 shares for about $11.75 million and director John Graham-Cumming’s sale of 2,520 shares. Over the last 90 days, insiders have sold 566,245 shares worth roughly $121.3 million.
• Cloudflare reported better-than-expected Q1 results, with EPS of $0.25 versus $0.23 expected and revenue of $639.75 million, up 33.5% year over year. Analysts remain generally constructive, with the stock carrying a Moderate Buy rating and an average target price of $241.35.

Capelight Capital Asset Management LP lowered its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 11.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 40,000 shares of the company's stock after selling 5,000 shares during the quarter. Cloudflare accounts for approximately 5.8% of Capelight Capital Asset Management LP's holdings, making the stock its 5th biggest holding. Capelight Capital Asset Management LP's holdings in Cloudflare were worth $8,254,000 at the end of the most recent quarter.

Other institutional investors also recently made changes to their positions in the company. Norges Bank bought a new position in Cloudflare during the fourth quarter worth $718,316,000. Jennison Associates LLC grew its stake in shares of Cloudflare by 802.6% in the fourth quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock worth $367,411,000 after purchasing an additional 1,657,144 shares in the last quarter. Corient Private Wealth LLC increased its stake in Cloudflare by 4,042.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock valued at $275,887,000 after buying an additional 1,365,598 shares during the period. Groupama Asset Managment increased its stake in shares of Cloudflare by 82.6% during the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock valued at $450,639,000 after acquiring an additional 950,000 shares during the period. Finally, Massachusetts Financial Services Co. MA increased its position in shares of Cloudflare by 25.8% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after purchasing an additional 336,768 shares during the period. 82.68% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $224.30, for a total transaction of $11,749,731.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of Cloudflare stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $235.95, for a total value of $594,594.00. Following the completion of the sale, the director directly owned 494,067 shares in the company, valued at approximately $116,575,108.65. This represents a 0.51% 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 have sold 566,245 shares of company stock worth $121,343,833 over the last 90 days. 10.66% of the stock is currently owned by corporate insiders.

Cloudflare Stock Performance

NYSE:NET opened at $242.14 on Friday. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The firm has a market capitalization of $85.59 billion, a PE ratio of -968.56, a price-to-earnings-growth ratio of 248.07 and a beta of 1.67. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $276.82. The firm has a 50-day moving average price of $225.40 and a 200 day moving average price of $204.62.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The business had revenue of $639.75 million for the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.Cloudflare's revenue was up 33.5% compared to the same quarter last year. During the same period in the previous year, the business 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. Research analysts anticipate that Cloudflare, Inc. will post 0.02 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

NET has been the subject of several research reports. BTIG Research raised their price objective on Cloudflare from $243.00 to $269.00 and gave the stock a "buy" rating in a research note on Wednesday, June 10th. Truist Financial upped their price objective on shares of Cloudflare from $225.00 to $250.00 and gave the company a "buy" rating in a research note on Thursday, June 11th. Guggenheim reaffirmed a "sell" rating and set a $140.00 price target on shares of Cloudflare in a research note on Wednesday, June 10th. Stifel Nicolaus set a $260.00 price objective on shares of Cloudflare in a research note on Friday, May 8th. Finally, Needham & Company LLC upped their target price on Cloudflare from $250.00 to $280.00 and gave the stock a "buy" rating in a research report on Wednesday, June 10th. Twenty-one analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $241.35.

Cloudflare Company Profile

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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