Cloudflare, Inc. $NET Shares Sold by ARK Investment Management LLC

Key Points

• ARK Investment Management LLC has decreased its stake in Cloudflare, Inc. by 6.8%, now holding 204,306 shares worth approximately $40 million.
• Cloudflare reported earnings of $0.21 per share for the last quarter, beating expectations, with a year-over-year revenue increase of 27.8% to $512.32 million.
• Several brokerages have raised their target prices for Cloudflare, with UBS Group increasing it from $215.00 to $240.00, reflecting positive analyst sentiment.

ARK Investment Management LLC reduced its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 6.8% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 204,306 shares of the company's stock after selling 14,832 shares during the quarter. ARK Investment Management LLC owned 0.06% of Cloudflare worth $40,009,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. GAMMA Investing LLC lifted its holdings in shares of Cloudflare by 86.8% in the 1st quarter. GAMMA Investing LLC now owns 1,093 shares of the company's stock worth $123,000 after acquiring an additional 508 shares during the last quarter. Wealthedge Investment Advisors LLC lifted its holdings in shares of Cloudflare by 64.5% in the 1st quarter. Wealthedge Investment Advisors LLC now owns 12,132 shares of the company's stock worth $1,367,000 after acquiring an additional 4,755 shares during the last quarter. American Century Companies Inc. increased its stake in Cloudflare by 34.5% during the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after buying an additional 779,819 shares during the period. Independent Solutions Wealth Management LLC increased its stake in Cloudflare by 293.3% during the 2nd quarter. Independent Solutions Wealth Management LLC now owns 15,059 shares of the company's stock worth $2,949,000 after buying an additional 11,230 shares during the period. Finally, Castle Rock Wealth Management LLC increased its stake in Cloudflare by 10.5% during the 2nd quarter. Castle Rock Wealth Management LLC now owns 12,943 shares of the company's stock worth $2,568,000 after buying an additional 1,229 shares during the period. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, CFO Thomas J. Seifert sold 59,130 shares of the company's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $200.30, for a total value of $11,843,739.00. Following the completion of the transaction, the chief financial officer owned 241,550 shares in the company, valued at approximately $48,382,465. This represents a 19.67% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Michelle Zatlyn sold 35,100 shares of the company's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $191.71, for a total transaction of $6,729,021.00. Following the completion of the transaction, the insider owned 14,575 shares of the company's stock, valued at approximately $2,794,173.25. The trade was a 70.66% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 710,270 shares of company stock worth $147,320,646. Corporate insiders own 10.89% of the company's stock.

Cloudflare Trading Down 0.1%

Shares of NYSE:NET opened at $212.77 on Wednesday. Cloudflare, Inc. has a 52 week low of $85.60 and a 52 week high of $230.10. The company's 50 day moving average is $213.10 and its two-hundred day moving average is $180.16. The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. The company has a market cap of $74.15 billion, a PE ratio of -625.78 and a beta of 1.99.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.03. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The business had revenue of $512.32 million during the quarter, compared to analysts' expectations of $501.58 million. During the same quarter in the prior year, the business posted $0.20 EPS. The company's revenue for the quarter was up 27.8% on a year-over-year basis. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Equities analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on NET. Needham & Company LLC upped their target price on shares of Cloudflare from $200.00 to $240.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Cantor Fitzgerald upped their target price on shares of Cloudflare from $162.00 to $199.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Guggenheim reaffirmed a "sell" rating on shares of Cloudflare in a research note on Tuesday. Piper Sandler upped their target price on shares of Cloudflare from $151.00 to $224.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Finally, UBS Group upped their target price on shares of Cloudflare from $215.00 to $240.00 and gave the stock a "neutral" rating in a research note on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $198.21.

About Cloudflare

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.

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