Cloudflare, Inc. $NET is Strategy Capital LLC's 3rd Largest Position

Key Points

• Strategy Capital LLC reduced its Cloudflare stake by 10.4% in the fourth quarter, but Cloudflare still remains its 3rd largest holding at 15.2% of the portfolio. The fund owned 1,042,099 shares worth about $205.45 million.
• Cloudflare delivered strong quarterly results, beating EPS and revenue estimates with $0.25 EPS on $639.76 million in revenue. Revenue rose 33.5% year over year, and the company also issued FY 2026 and Q2 2026 guidance.
• Wall Street sentiment remains mostly positive, but mixed, with several firms raising price targets or reiterating buy ratings while Goldman Sachs downgraded the stock to sell and one report issued a new sell recommendation. Analysts currently view Cloudflare as a Moderate Buy with an average price target of $241.35.

Strategy Capital LLC lessened its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 10.4% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 1,042,099 shares of the company's stock after selling 120,839 shares during the quarter. Cloudflare comprises 15.2% of Strategy Capital LLC's portfolio, making the stock its 3rd largest holding. Strategy Capital LLC owned approximately 0.30% of Cloudflare worth $205,450,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also added to or reduced their stakes in the company. Trek Financial LLC bought a new stake in shares of Cloudflare during the 4th quarter valued at about $1,793,000. Lingotto Investment Management LLP bought a new stake in shares of Cloudflare during the 4th quarter valued at about $34,626,000. Jupiter Asset Management Ltd. boosted its position in shares of Cloudflare by 1,984.7% during the 4th quarter. Jupiter Asset Management Ltd. now owns 197,710 shares of the company's stock valued at $38,979,000 after acquiring an additional 188,226 shares during the last quarter. Massachusetts Financial Services Co. MA boosted 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 acquiring an additional 336,768 shares during the last quarter. Finally, Bank Julius Baer & Co. Ltd Zurich boosted its position in shares of Cloudflare by 275.6% during the 4th quarter. Bank Julius Baer & Co. Ltd Zurich now owns 37,072 shares of the company's stock valued at $7,348,000 after acquiring an additional 27,202 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Performance

NYSE:NET opened at $227.91 on Friday. The business has a 50 day moving average of $216.10 and a 200 day moving average of $201.68. The company has a market capitalization of $80.56 billion, a price-to-earnings ratio of -911.62, a PEG ratio of 770.64 and a beta of 1.70. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $276.82. 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 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. The company had revenue of $639.76 million during 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 quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $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. On average, sell-side analysts predict that Cloudflare, Inc. will post 0.01 earnings per share for the current fiscal year.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist Financial raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, implying further upside from current levels. Truist raises Cloudflare price target
• Positive Sentiment: Morgan Stanley also sharply increased its Cloudflare price target, adding to the bullish analyst backdrop and reinforcing the view that expectations for the company are improving. Morgan Stanley raises Cloudflare price target
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, while other reports noted Wall Street’s overall average recommendation remains equivalent to a Buy, supporting investor confidence in the stock. Barclays keeps buy rating on Cloudflare
• Positive Sentiment: Zacks said Cloudflare may be well poised for a surge because of solid earnings estimate revisions, which often signals improving fundamentals and stronger near-term sentiment. Zacks says Cloudflare may surge
• Neutral Sentiment: Jim Cramer commented that Cloudflare’s long-term direction looks “pretty fabulous,” but also noted the stock has been volatile, making the takeaway more of a commentary on long-term prospects than a direct catalyst. Jim Cramer comments on Cloudflare
• Negative Sentiment: One report flagged a new sell recommendation for Cloudflare, suggesting some analysts remain cautious despite the broader bullish tone. Cloudflare new sell recommendation

Analyst Upgrades and Downgrades

NET has been the subject of a number of research analyst reports. The Goldman Sachs Group downgraded Cloudflare from a "buy" rating to a "sell" rating in a research report on Wednesday, April 15th. Jefferies Financial Group initiated coverage on Cloudflare in a research report on Wednesday, April 15th. They set a "buy" rating for the company. Needham & Company LLC lifted their price target on Cloudflare from $250.00 to $280.00 and gave the company a "buy" rating in a research report on Wednesday. TD Cowen reiterated a "buy" rating on shares of Cloudflare in a research report on Wednesday. Finally, Zacks Research upgraded Cloudflare from a "strong sell" rating to a "hold" rating in a research report on Friday, March 13th. Twenty equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Cloudflare presently has a consensus rating of "Moderate Buy" and an average price target of $241.35.

Insider Buying and Selling

In related news, CFO Thomas J. Seifert sold 10,000 shares of the business's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $200.61, for a total value of $2,006,100.00. Following the completion of the sale, the chief financial officer owned 212,014 shares in the company, valued at $42,532,128.54. The trade was a 4.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 25,641 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $211.83, for a total value of $5,431,533.03. Following the completion of the sale, the insider owned 47,425 shares of the company's stock, valued at $10,046,037.75. The trade was a 35.09% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 527,784 shares of company stock worth $111,803,817 over the last ninety days. Corporate insiders own 10.89% of the company's stock.

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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