Cloudflare, Inc. $NET Shares Acquired by Massachusetts Financial Services Co. MA

Key Points

• Massachusetts Financial Services boosted its Cloudflare stake by 25.8% in Q4 to 1,639,661 shares, representing about 0.47% of the company and valued at roughly $323.3 million.
• Cloudflare beat Q4 estimates with $0.28 EPS (vs. $0.27) and $614.5M revenue (up 33.6% YoY), though it still posts a negative net margin and ROE; analysts hold a consensus "Moderate Buy" with a $233.38 price target.
• Significant insider selling has occurred recently — the CEO and CFO sold large blocks and insiders sold 624,247 shares worth $121.1M in the past 90 days, which may create short-term selling pressure.

Massachusetts Financial Services Co. MA lifted its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 25.8% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,639,661 shares of the company's stock after buying an additional 336,768 shares during the period. Massachusetts Financial Services Co. MA owned approximately 0.47% of Cloudflare worth $323,259,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also made changes to their positions in the company. Physician Wealth Advisors Inc. increased its holdings in shares of Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after buying an additional 104 shares during the last quarter. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare during the 3rd quarter worth approximately $26,000. Westside Investment Management Inc. increased its holdings in shares of Cloudflare by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock worth $28,000 after buying an additional 65 shares during the last quarter. ORG Wealth Partners LLC increased its holdings in shares of Cloudflare by 101.4% during the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock worth $30,000 after buying an additional 70 shares during the last quarter. Finally, Wexford Capital LP acquired a new stake in shares of Cloudflare during the 3rd quarter worth approximately $30,000. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare Stock Performance

NYSE:NET opened at $167.41 on Friday. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.98 and a current ratio of 1.98. The stock has a market capitalization of $58.92 billion, a P/E ratio of -577.26 and a beta of 1.87. The company has a 50 day moving average price of $194.59 and a 200 day moving average price of $201.85. Cloudflare, Inc. has a fifty-two week low of $100.25 and a fifty-two week high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.01. The firm had revenue of $614.51 million during the quarter, compared to analysts' expectations of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The firm's quarterly revenue was up 33.6% on a year-over-year basis. During the same quarter last year, the company posted $0.19 EPS. Equities research analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction that occurred on Tuesday, February 24th. The shares were sold at an average price of $164.15, for a total value of $8,598,833.60. Following the completion of the transaction, the chief executive officer owned 22,911 shares of the company's stock, valued at $3,760,840.65. This trade represents a 69.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Thomas J. Seifert sold 41,557 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $185.04, for a total transaction of $7,689,707.28. Following the completion of the transaction, the chief financial officer directly owned 85,452 shares of the company's stock, valued at $15,812,038.08. This represents a 32.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 624,247 shares of company stock valued at $121,102,467 in the last 90 days. Company insiders own 10.89% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on NET. DZ Bank upgraded shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price target for the company in a report on Friday, February 13th. Truist Financial set a $225.00 price objective on shares of Cloudflare in a research report on Tuesday, January 20th. Robert W. Baird set a $260.00 price objective on shares of Cloudflare and gave the stock an "outperform" rating in a research report on Wednesday, February 11th. TD Cowen reaffirmed a "buy" rating on shares of Cloudflare in a research report on Tuesday, January 27th. Finally, Piper Sandler increased their price objective on shares of Cloudflare from $220.00 to $222.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, Cloudflare has a consensus rating of "Moderate Buy" and a consensus price target of $233.38.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Product and partner momentum: Virtru launched object‑level data governance for Cloudflare R2, improving R2’s security/compliance pitch for AI workloads and strengthening Cloudflare’s developer/storage monetization pathway. Virtru Brings Object Level Governance To Cloudflare R2 For AI And Compliance
• Positive Sentiment: Durable fundamentals: recent quarterly results showed revenue growth (~34% y/y) and an EPS beat, and several analysts highlight Cloudflare’s edge + security positioning for AI inference at the edge — a longer‑term growth thesis for the stock. Are Cloudflare (NET)’s AI Security Prospects Brighter Than Investors Think?
• Neutral Sentiment: Wall Street stance is mixed‑positive: consensus remains around a “moderate buy” with varied price targets, so analyst coverage may temper panic selling but isn’t a fresh bullish catalyst right now. Cloudflare, Inc. NYSE: NET Receives Average Rating of "Moderate Buy" from Analysts
• Negative Sentiment: Sector contagion from AI “agent” news: reports that Anthropic launched managed agents triggered a broad sell‑off in AI/edge/security infrastructure names (Cloudflare included) as investors rapidly reprice how frontier AI advances could change competitive dynamics and margins. Fastly, along with Akamai and Cloudflare, tumbles after Anthropic launches managed agents
• Negative Sentiment: Insider selling amplified pressure: several recently disclosed, pre‑arranged CEO sales (Rule 10b5‑1) were sizable and have been highlighted in headlines; even planned sales can create short‑term selling pressure and raise investor nerves. Cloudflare (NET) Stock Plunges 8.6% Following CEO’s $33M Share Sale
• Negative Sentiment: Macro & geopolitical risk: a ceasefire breach in the Middle East briefly spiked market volatility today, contributing to risk‑off flows that hit high‑multiple software and AI infrastructure stocks. Why Cloudflare (NET) Shares Are Trading Lower Today

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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