Cloudflare, Inc. $NET Shares Sold by Capital International Ltd. CA

Key Points

• Capital International Ltd. CA reduced its stake in Cloudflare by 4.2% in Q3, selling 6,445 shares and now holds 146,721 shares worth about $31.49 million, representing ~1.1% of its portfolio and its 20th-largest holding.
• Company insiders have been heavy sellers: CEO Matthew Prince sold 52,384 shares for roughly $9.93 million on Jan 8 and CFO Thomas J. Seifert sold 41,557 shares for about $7.69 million on Feb 20, with insiders disposing of 551,851 shares worth ~$102.7 million over the past 90 days.
• Analysts show a consensus Moderate Buy with a $230.70 target; Cloudflare beat recent quarterly EPS and revenue estimates with revenue up 33.6% year-over-year, but still reports a negative net margin (-4.72%) and negative ROE.

Capital International Ltd. CA decreased its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 4.2% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 146,721 shares of the company's stock after selling 6,445 shares during the quarter. Cloudflare comprises approximately 1.1% of Capital International Ltd. CA's holdings, making the stock its 20th biggest holding. Capital International Ltd. CA's holdings in Cloudflare were worth $31,485,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. Physician Wealth Advisors Inc. increased its stake in Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after buying an additional 104 shares during the period. Westside Investment Management Inc. boosted its holdings in shares of Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after buying an additional 65 shares during the period. Twin Peaks Wealth Advisors LLC acquired a new stake in Cloudflare in the second quarter worth $29,000. ORG Wealth Partners LLC increased its position in Cloudflare by 101.4% in the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock valued at $30,000 after acquiring an additional 70 shares during the period. Finally, Cloud Capital Management LLC bought a new stake in shares of Cloudflare during the third quarter valued at about $31,000. Institutional investors and hedge funds own 82.68% of the company's stock.

Insider Activity

In related news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Thursday, January 8th. The stock was sold at an average price of $189.47, for a total transaction of $9,925,196.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Thomas J. Seifert sold 41,557 shares of the stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $185.04, for a total value of $7,689,707.28. Following the transaction, the chief financial officer owned 85,452 shares of the company's stock, valued at approximately $15,812,038.08. The trade was a 32.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 551,851 shares of company stock worth $102,673,182 in the last 90 days. Corporate insiders own 10.89% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on NET. Wolfe Research reissued a "peer perform" rating on shares of Cloudflare in a research report on Monday, January 26th. TD Cowen restated a "buy" rating on shares of Cloudflare in a report on Tuesday, January 27th. Royal Bank Of Canada upped their price target on Cloudflare from $230.00 to $240.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 11th. Argus upped their price target on Cloudflare from $238.00 to $265.00 and gave the stock a "buy" rating in a report on Monday, November 10th. Finally, Needham & Company LLC decreased their price target on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating on the stock 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 given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $230.70.

Cloudflare Price Performance

Cloudflare stock opened at $201.59 on Tuesday. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. Cloudflare, Inc. has a 12-month low of $89.42 and a 12-month high of $260.00. The stock has a market cap of $70.61 billion, a price-to-earnings ratio of -695.11 and a beta of 1.98. The business's 50-day simple moving average is $184.32 and its 200 day simple moving average is $202.65.

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

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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