Cloudflare, Inc. $NET Shares Bought by Teacher Retirement System of Texas

Key Points

• Teacher Retirement System of Texas increased its Cloudflare stake by 38.4%, buying 15,620 shares to hold 56,286 shares worth about $11.1 million; institutional investors now own roughly 82.7% of the company.
• Cloudflare beat the quarter with $0.28 EPS (vs. $0.27 expected) and revenue of $614.5M, up 33.6% year‑over‑year, but the company still reports a negative net margin and a negative P/E.
• Significant insider selling occurred recently — insiders sold 624,247 shares (~$122M) over the last 90 days, including large sales by Michelle Zatlyn and the CFO.

Teacher Retirement System of Texas raised its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 38.4% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 56,286 shares of the company's stock after purchasing an additional 15,620 shares during the quarter. Teacher Retirement System of Texas' holdings in Cloudflare were worth $11,097,000 at the end of the most recent reporting period.

Several other large investors have also added to or reduced their stakes in NET. Physician Wealth Advisors Inc. grew its stake in Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock valued at $26,000 after purchasing an additional 104 shares during the last quarter. Wiser Advisor Group LLC purchased a new stake in Cloudflare during the 3rd quarter valued at about $26,000. Westside Investment Management Inc. grew its stake in Cloudflare by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after purchasing an additional 65 shares during the last quarter. ORG Wealth Partners LLC grew its stake in Cloudflare by 101.4% during the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock valued at $30,000 after purchasing an additional 70 shares during the last quarter. Finally, Wexford Capital LP purchased a new stake in Cloudflare during the 3rd quarter valued at about $30,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Wall Street Analysts Forecast Growth

NET has been the topic of several research analyst reports. Guggenheim boosted their price target on Cloudflare from $117.00 to $140.00 and gave the company a "sell" rating in a research note on Wednesday, February 11th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a research note on Monday, April 20th. New Street Research set a $140.00 price target on Cloudflare in a research note on Wednesday, February 11th. Cantor Fitzgerald reiterated a "neutral" rating and set a $224.00 price target on shares of Cloudflare in a research note on Wednesday, February 11th. Finally, Robert W. Baird set a $260.00 price target on Cloudflare and gave the company an "outperform" rating in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Cloudflare currently has a consensus rating of "Moderate Buy" and an average target price of $232.62.

Cloudflare Stock Up 1.1%

Shares of NET opened at $207.29 on Friday. Cloudflare, Inc. has a 52 week low of $117.07 and a 52 week high of $260.00. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. The company has a market capitalization of $72.96 billion, a price-to-earnings ratio of -714.77 and a beta of 1.87. The stock's 50-day moving average price is $198.63 and its 200-day moving average price is $200.45.

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

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 25,641 shares of the company's stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $209.15, for a total value of $5,362,815.15. Following the sale, the insider owned 34,514 shares in the company, valued at $7,218,603.10. This represents a 42.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of the company's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $197.98, for a total value of $1,979,800.00. Following the completion of the sale, the chief financial officer owned 221,681 shares in the company, valued at $43,888,404.38. The trade was a 4.32% 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. Over the last ninety days, insiders have sold 624,247 shares of company stock valued at $122,080,874. 10.89% of the stock is owned by insiders.

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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