Cloudflare, Inc. $NET Shares Sold by AIA Group Ltd

Key Points

• AIA Group cut its Cloudflare stake by 31% in the third quarter, selling 15,111 shares and retaining 33,602 shares valued at about $11.7 million.
• Cloudflare insiders sold 264,057 shares worth roughly $80.9 million over the past three months; the reported sales were made under pre-arranged trading plans.
• Analysts’ consensus rating was Hold, with an average price target of $333.21. Cloudflare’s latest reported quarter beat EPS and revenue estimates, with revenue up 35.9% year over year.

AIA Group Ltd trimmed its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 31.0% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 33,602 shares of the company's stock after selling 15,111 shares during the period. AIA Group Ltd's holdings in Cloudflare were worth $11,669,000 as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. GK Wealth Management LLC acquired a new position in shares of Cloudflare in the third quarter valued at approximately $25,000. Toth Financial Advisory Corp acquired a new stake in Cloudflare during the third quarter worth approximately $36,000. Cornerstone Financial Management LLC boosted its position in Cloudflare by 65.3% during the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock worth $29,000 after acquiring an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. purchased a new stake in Cloudflare in the 2nd quarter worth approximately $30,000. Finally, CX Institutional grew its stake in Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after acquiring an additional 44 shares during the period. 82.68% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Michelle Zatlyn sold 33,003 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $277.43, for a total transaction of $9,156,022.29. Following the completion of the sale, the insider owned 69,775 shares in the company, valued at approximately $19,357,678.25. The trade was a 32.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 12,500 shares of the stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the sale, the chief financial officer directly owned 104,958 shares of the company's stock, valued at approximately $31,444,367.22. This trade represents a 10.64% 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. Insiders have sold 264,057 shares of company stock valued at $80,926,805 in the last three months. Corporate insiders own 10.66% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on NET. Craig Hallum upgraded Cloudflare to a "buy" rating in a report on Tuesday. Stephens initiated coverage on Cloudflare in a report on Tuesday. They set an "overweight" rating on the stock. Citizens Jmp reaffirmed a "market outperform" rating and issued a $394.00 price objective on shares of Cloudflare in a research report on Monday, August 31st. Needham & Company LLC upped their target price on Cloudflare from $280.00 to $380.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Finally, Cantor Fitzgerald reiterated a "neutral" rating and set a $340.00 target price on shares of Cloudflare in a research report on Monday, October 5th. Twenty-four equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $333.21.

Cloudflare Trading Up 3.0%

NYSE:NET opened at $273.17 on Wednesday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $370.35. The firm's 50 day moving average is $320.06 and its two-hundred day moving average is $248.60.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.02. The company had revenue of $696.06 million during the quarter, compared to analysts' expectations of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The business's quarterly revenue was up 35.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.21 EPS. On average, equities research analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: JPMorgan raised its rating from Neutral to Overweight and set a $350 price target, citing an appealing entry point after the stock’s roughly 26% decline over the previous month and potential for faster revenue growth. JPMorgan upgrades Cloudflare after selloff
• Neutral Sentiment: Cloudflare’s November 5 earnings report is the next key catalyst. Investors will assess demand for its AI, Workers and security products, as well as whether growth can support its valuation. Cloudflare earnings date
• Negative Sentiment: Jefferies lowered its price target from $350 to $320 and maintained a Hold rating, signaling less upside than its prior forecast. Jefferies lowers Cloudflare price target
• Negative Sentiment: Valuation remains a concern: bearish analysts argue that the share price assumes substantial future margin expansion and AI monetization, while profitability and cash generation have yet to justify that premium. Cloudflare has also retreated from its October high amid pressure on expensive software and AI stocks. Cloudflare earnings and valuation analysis

Cloudflare Profile

Cloudflare, Inc NYSE: NET provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company's offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.

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