Cloudflare, Inc. $NET Shares Sold by Brighton Jones LLC

Key Points

• Brighton Jones LLC cut its Cloudflare stake by 47.3% in the third quarter, selling 9,406 shares; it retained 10,473 shares valued at about $3.64 million.
• Cloudflare’s third-quarter revenue rose 39.2% year over year to $782.5 million, and adjusted EPS of $0.38 beat estimates. The company also issued 2026 revenue and earnings guidance above consensus.
• Growth is accompanied by profitability concerns: the GAAP operating loss widened and gross margins faced pressure. Analysts’ views were mixed, though the consensus rating remained “Moderate Buy.”

Brighton Jones LLC trimmed its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 47.3% in the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 10,473 shares of the company's stock after selling 9,406 shares during the quarter. Brighton Jones LLC's holdings in Cloudflare were worth $3,637,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Candriam S.C.A. raised its stake in shares of Cloudflare by 31.3% during the 3rd quarter. Candriam S.C.A. now owns 76,607 shares of the company's stock worth $26,701,000 after purchasing an additional 18,241 shares during the period. Leelyn Smith LLC grew its position in Cloudflare by 1.5% during the third quarter. Leelyn Smith LLC now owns 6,823 shares of the company's stock valued at $2,369,000 after buying an additional 98 shares during the period. Allen Investment Management LLC grew its position in Cloudflare by 1.7% during the third quarter. Allen Investment Management LLC now owns 333,810 shares of the company's stock valued at $115,926,000 after buying an additional 5,463 shares during the period. Abacus Wealth Partners LLC bought a new position in Cloudflare during the third quarter valued at about $297,000. Finally, Alps Advisors Inc. increased its holdings in Cloudflare by 3.9% during the third quarter. Alps Advisors Inc. now owns 10,595 shares of the company's stock worth $3,679,000 after buying an additional 402 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Third-quarter revenue rose 39.2% year over year to $782.5 million, beating estimates, while adjusted EPS of $0.38 also topped forecasts. The company cited strong enterprise demand and growing adoption of its developer platform. Cloudflare Q3 Earnings Beat Estimates on Robust Enterprise Demand
• Positive Sentiment: Cloudflare raised its 2026 outlook: full-year revenue guidance is about $3.0 billion and EPS guidance is $1.35, above consensus estimates. Fourth-quarter revenue guidance of $845 million–$846 million and EPS guidance of $0.43 also exceeded expectations. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Further signs of AI-related momentum include Cloudflare’s first revenue from AI bot traffic and a developer base that doubled to 10 million. Analysts at Wolfe Research upgraded the shares to Outperform. Why Cloudflare Stock Opened Higher Today
• Neutral Sentiment: Analyst actions were mixed: Piper Sandler reaffirmed Overweight and raised its target, while Scotiabank, Needham and Cantor Fitzgerald lowered targets; the latter firms retained positive or neutral ratings. Scotiabank rating update
• Negative Sentiment: Some profitability measures lagged growth: gross margin faced pressure, free cash flow grew more slowly than revenue, and the GAAP operating loss widened. Cloudflare’s high valuation may make the stock sensitive to any slowdown or disappointment. Cloudflare Sales Up 39%, Gross Margin Falls

Cloudflare Stock Up 0.2%

NET stock opened at $269.20 on Monday. The stock has a fifty day moving average of $318.23 and a 200-day moving average of $249.77. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $370.35. The company has a market capitalization of $95.15 billion, a price-to-earnings ratio of -395.88, a PEG ratio of 208.12 and a beta of 1.38. The company has a debt-to-equity ratio of 3.03, a quick ratio of 3.80 and a current ratio of 3.80.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.34 by $0.04. Cloudflare had a negative return on equity of 6.05% and a negative net margin of 8.75%. The business had revenue of $782.51 million for the quarter, compared to analysts' expectations of $737.16 million. During the same period in the previous year, the business posted $0.27 EPS. The firm's quarterly revenue was up 39.2% compared to the same quarter last year. As a group, equities research analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Insiders Place Their Bets

In other news, CFO Thomas Seifert sold 12,500 shares of Cloudflare stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the completion of the transaction, the chief financial officer owned 104,958 shares in the company, valued at $31,444,367.22. This trade represents a 10.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of Cloudflare 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 transaction, the insider owned 69,775 shares of the company's stock, valued at $19,357,678.25. The trade was a 32.11% 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 sold 256,537 shares of company stock worth $78,750,901 over the last quarter. 10.66% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages have commented on NET. Wolfe Research raised shares of Cloudflare from a "hold" rating to an "outperform" rating in a research report on Friday. Piper Sandler reissued an "overweight" rating and set a $337.00 target price (up from $333.00) on shares of Cloudflare in a research report on Friday. JPMorgan Chase & Co. upgraded shares of Cloudflare from a "neutral" rating to an "overweight" rating and set a $350.00 price target for the company in a research note on Tuesday, November 3rd. Fox Advisors lowered shares of Cloudflare to a "neutral" rating in a research note on Tuesday, November 3rd. Finally, Robert W. Baird set a $330.00 price target on shares of Cloudflare in a report on Friday, August 7th. Twenty-six research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $332.82.

Cloudflare Profile

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.

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