Cloudflare, Inc. $NET Shares Sold by Hennion & Walsh Asset Management Inc.

Key Points

• Hennion & Walsh Asset Management cut its Cloudflare stake by 58.3% in the second quarter, selling 5,976 shares and retaining 4,278 shares valued at approximately $1.05 million.
• Other institutional investors increased their positions substantially, and institutions collectively own 82.68% of Cloudflare’s stock.
• Cloudflare reported strong quarterly results, with revenue up 35.9% year over year to $696.1 million and adjusted EPS of $0.29 beating estimates; however, insiders have sold significant shares recently, and the stock’s elevated valuation remains a risk.

Hennion & Walsh Asset Management Inc. decreased its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 58.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 4,278 shares of the company's stock after selling 5,976 shares during the quarter. Hennion & Walsh Asset Management Inc.'s holdings in Cloudflare were worth $1,049,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Norges Bank acquired a new stake in Cloudflare during the 4th quarter worth approximately $718,316,000. Jennison Associates LLC increased its position in shares of Cloudflare by 135.8% during the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after acquiring an additional 2,530,872 shares during the period. Corient Private Wealth LLC increased its position in shares of Cloudflare by 4,042.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after acquiring an additional 1,365,598 shares during the period. Swedbank AB increased its position in shares of Cloudflare by 697.5% during the first quarter. Swedbank AB now owns 927,606 shares of the company's stock worth $191,402,000 after acquiring an additional 811,297 shares during the period. Finally, National Pension Service raised its stake in shares of Cloudflare by 53.2% in the fourth quarter. National Pension Service now owns 948,003 shares of the company's stock valued at $186,899,000 after acquiring an additional 329,341 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong Q2 results and upbeat guidance support the rally. Cloudflare reported revenue of $696.1 million, up 35.9% year over year and above expectations, while non-GAAP EPS of $0.29 exceeded the $0.27 consensus. Next-quarter revenue guidance of approximately $736.5 million was also ahead of analyst estimates. NET Q2 Deep Dive
• Positive Sentiment: AI security and developer-platform demand are strengthening Cloudflare’s growth story. Coverage points to increasing demand for SASE, Zero Trust, agentic AI and developer tools, potentially helping Cloudflare win larger enterprise contracts and compete more directly with Palo Alto Networks and Zscaler. Cloudflare AI security strategy
• Positive Sentiment: Signal selected Cloudflare as an independent Key Transparency auditor. The partnership gives hundreds of millions of Signal users additional confidence in message privacy and showcases Cloudflare’s security and trust infrastructure. Signal partnership announcement
• Positive Sentiment: Analyst sentiment remains broadly favorable. Several firms raised price targets, and brokerages maintain a consensus “Moderate Buy” view. Technical coverage also describes strong momentum after the earnings beat. Cloudflare momentum setup
• Neutral Sentiment: Cloudflare raised $2.175 billion through zero-coupon convertible notes due in 2031. The deal adds financial flexibility without cash interest expense, but potential future share conversion could dilute existing shareholders. Cloudflare convertible note offering
• Negative Sentiment: x402 settlement volume has plunged 93% year to date. The decline suggests the late-2025 surge in AI-agent payments may have been driven primarily by testing rather than sustained demand, challenging near-term monetization expectations. x402 settlement volume report
• Negative Sentiment: Valuation and insider selling create downside risks. Cloudflare trades at a demanding valuation while remaining GAAP-unprofitable. Director John Graham-Cumming sold 2,520 shares under a pre-arranged Rule 10b5-1 plan, although he retained nearly 495,000 shares. Cloudflare director stock sale

Insider Activity

In other news, CFO Thomas J. Seifert sold 55,000 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the sale, the chief financial officer owned 113,790 shares of the company's stock, valued at approximately $34,171,137. This trade represents a 32.58% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business's stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total value of $13,057,795.98. 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. In the last 90 days, insiders have sold 748,719 shares of company stock worth $183,992,198. 10.66% of the stock is currently owned by insiders.

Cloudflare Stock Performance

Shares of NET stock opened at $331.45 on Friday. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The firm has a fifty day moving average price of $260.67 and a 200 day moving average price of $223.07. The company has a market cap of $117.16 billion, a P/E ratio of -571.47, a PEG ratio of 192.59 and a beta of 1.65. Cloudflare, Inc. has a 12 month low of $158.83 and a 12 month high of $332.22.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. The company had revenue of $696.06 million for the quarter, compared to analysts' expectations of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.Cloudflare's quarterly revenue was up 35.9% on a year-over-year basis. During the same period last year, the firm earned $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Sell-side analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on NET. Susquehanna lifted their target price on Cloudflare from $200.00 to $300.00 and gave the company a "neutral" rating in a report on Monday. DZ Bank downgraded Cloudflare from a "strong-buy" rating to a "strong sell" rating in a report on Friday, August 7th. Deutsche Bank Aktiengesellschaft raised Cloudflare to a "buy" rating in a research report on Tuesday, July 7th. Barclays lifted their price objective on Cloudflare from $300.00 to $355.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Finally, Mizuho boosted their price objective on Cloudflare from $260.00 to $310.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $320.19.

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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