Cloudflare, Inc. $NET Shares Bought by Atika Capital Management LLC

Key Points

• Atika Capital Management increased its Cloudflare stake by 42.5% to 98,010 shares (worth about $21.03 million), while institutional investors collectively own 82.68% of the stock, with Vanguard holding ~32.3 million shares.
• Cloudflare beat the quarter's estimates with $0.28 EPS (vs. $0.27) and revenue of $614.51 million (+33.6% YoY), but the company remains unprofitable with a negative net margin (~-4.72%) and negative ROE.
• Insiders have been selling heavily—526,210 shares (~$97.3 million) sold in the past 90 days—while analysts maintain a consensus "Moderate Buy" rating with an average price target of $230.70.

Atika Capital Management LLC raised its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 42.5% during the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 98,010 shares of the company's stock after purchasing an additional 29,209 shares during the period. Cloudflare accounts for approximately 1.7% of Atika Capital Management LLC's investment portfolio, making the stock its 19th biggest holding. Atika Capital Management LLC's holdings in Cloudflare were worth $21,032,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Vanguard Group Inc. increased its position in Cloudflare by 2.6% during the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock valued at $6,934,958,000 after buying an additional 821,684 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Cloudflare by 5.1% in the second quarter. Geode Capital Management LLC now owns 5,536,679 shares of the company's stock worth $1,081,533,000 after acquiring an additional 270,227 shares in the last quarter. Norges Bank purchased a new stake in shares of Cloudflare during the second quarter worth about $541,462,000. Charles Schwab Investment Management Inc. grew its stake in shares of Cloudflare by 3.6% during the second quarter. Charles Schwab Investment Management Inc. now owns 1,368,906 shares of the company's stock worth $268,073,000 after acquiring an additional 47,698 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its holdings in shares of Cloudflare by 96.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,302,893 shares of the company's stock valued at $279,588,000 after acquiring an additional 639,245 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Trading Up 2.7%

NYSE NET opened at $213.01 on Thursday. The company has a market capitalization of $74.61 billion, a PE ratio of -734.50 and a beta of 1.98. The company has a fifty day moving average of $184.79 and a 200 day moving average of $202.81. Cloudflare, Inc. has a 1 year low of $89.42 and a 1 year high of $260.00. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98.

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

Insider Transactions at Cloudflare

In related news, insider Michelle Zatlyn sold 25,641 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $189.50, for a total transaction of $4,858,969.50. Following the sale, the insider directly owned 34,514 shares of the company's stock, valued at $6,540,403. This trade represents a 42.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Janel Riley sold 23,332 shares of Cloudflare stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $190.00, for a total value of $4,433,080.00. Following the transaction, the chief accounting officer owned 56,791 shares of the company's stock, valued at approximately $10,790,290. This represents a 29.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 526,210 shares of company stock valued at $97,324,213. 10.89% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on NET. Needham & Company LLC decreased their price target on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating for the company in a report on Wednesday, February 11th. Cantor Fitzgerald reissued a "neutral" rating and set a $224.00 price objective on shares of Cloudflare in a report on Wednesday, February 11th. Weiss Ratings reissued a "sell (d-)" rating on shares of Cloudflare in a research report on Wednesday, January 21st. Citigroup raised their target price on Cloudflare from $260.00 to $265.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Finally, Barclays boosted their price target on Cloudflare from $235.00 to $250.00 and gave the company an "overweight" rating in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $230.70.

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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