Alliancebernstein L.P. Raises Stock Position in Cloudflare, Inc. $NET

Key Points

• AllianceBernstein L.P. increased its stake in Cloudflare, Inc. by 10.3% in Q1, owning 269,274 shares worth approximately $30.34 million.
• Several institutional investors, including Vanguard Group and Raymond James Financial, have also significantly boosted their holdings in Cloudflare, indicating strong institutional interest.
• Cloudflare reported a 27.8% year-over-year increase in revenue for the last quarter, with earnings per share exceeding analyst estimates, as the company sets guidance for FY 2025 at 0.850-0.860 EPS.

Alliancebernstein L.P. grew its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 10.3% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 269,274 shares of the company's stock after purchasing an additional 25,049 shares during the quarter. Alliancebernstein L.P. owned approximately 0.08% of Cloudflare worth $30,344,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of NET. Comerica Bank raised its holdings in shares of Cloudflare by 9.4% in the 4th quarter. Comerica Bank now owns 8,856 shares of the company's stock valued at $954,000 after purchasing an additional 764 shares in the last quarter. CoreCap Advisors LLC raised its holdings in shares of Cloudflare by 218.4% in the 4th quarter. CoreCap Advisors LLC now owns 554 shares of the company's stock valued at $60,000 after purchasing an additional 380 shares in the last quarter. EP Wealth Advisors LLC bought a new stake in shares of Cloudflare in the 4th quarter valued at about $237,000. Focus Partners Wealth raised its holdings in shares of Cloudflare by 272.7% in the 4th quarter. Focus Partners Wealth now owns 12,802 shares of the company's stock valued at $1,470,000 after purchasing an additional 9,367 shares in the last quarter. Finally, Gotham Asset Management LLC raised its stake in shares of Cloudflare by 2.5% during the 4th quarter. Gotham Asset Management LLC now owns 6,937 shares of the company's stock worth $747,000 after acquiring an additional 170 shares in the last quarter. Institutional investors own 82.68% of the company's stock.

Insider Activity at Cloudflare

In related news, CFO Thomas J. Seifert sold 41,555 shares of the firm's stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $190.64, for a total transaction of $7,922,045.20. Following the sale, the chief financial officer owned 189,517 shares in the company, valued at approximately $36,129,520.88. This trade represents a 17.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Graham-Cumming sold 10,215 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $206.32, for a total transaction of $2,107,558.80. Following the sale, the director owned 495,191 shares in the company, valued at approximately $102,167,807.12. This represents a 2.02% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 685,788 shares of company stock valued at $135,600,920 in the last quarter. 10.89% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several research firms recently commented on NET. Wells Fargo & Company boosted their price objective on shares of Cloudflare from $225.00 to $250.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Mizuho boosted their price objective on shares of Cloudflare from $220.00 to $240.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Morgan Stanley boosted their price objective on shares of Cloudflare from $225.00 to $235.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Bank of America boosted their price objective on shares of Cloudflare from $235.00 to $240.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Finally, DZ Bank reiterated a "sell" rating and set a $170.00 price objective on shares of Cloudflare in a research note on Tuesday, July 22nd. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $191.28.

Cloudflare Stock Performance

NYSE:NET traded down $3.16 during trading hours on Friday, hitting $221.48. 1,552,402 shares of the company were exchanged, compared to its average volume of 2,007,794. The company's 50 day moving average price is $201.32 and its 200-day moving average price is $161.96. The stock has a market capitalization of $77.18 billion, a price-to-earnings ratio of -651.41 and a beta of 1.95. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14. Cloudflare, Inc. has a 52-week low of $77.60 and a 52-week high of $230.10.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.18 by $0.03. The business had revenue of $512.32 million for the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The business's revenue for the quarter was up 27.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.20 EPS. 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, research analysts forecast that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Cloudflare Profile

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.