Cloudflare, Inc. $NET Shares Sold by Illinois Municipal Retirement Fund

Key Points

• Illinois Municipal Retirement Fund cut its Cloudflare stake by 69.6% in the first quarter, selling 7,775 shares and leaving it with 3,392 shares valued at about $700,000.
• Wall Street sentiment is mixed but generally positive: Cloudflare has a Moderate Buy consensus rating with an average target price of $261.19, while Scotiabank recently upgraded the stock to sector outperform and raised its target to $300.
• Cloudflare reported better-than-expected quarterly results, with EPS of $0.25 and revenue of $639.75 million, though the company still posted negative margins and insiders have sold shares recently, including CEO Matthew Prince and co-founder Michelle Zatlyn.

Illinois Municipal Retirement Fund decreased its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 69.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,392 shares of the company's stock after selling 7,775 shares during the period. Illinois Municipal Retirement Fund's holdings in Cloudflare were worth $700,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in NET. Wiser Advisor Group LLC bought a new stake in shares of Cloudflare in the 3rd quarter worth $26,000. HM Payson & Co. bought a new position in Cloudflare during the fourth quarter valued at about $25,000. Wexford Capital LP bought a new position in Cloudflare during the third quarter valued at about $30,000. Brown Brothers Harriman & Co. grew its holdings in Cloudflare by 55.4% during the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock worth $34,000 after acquiring an additional 56 shares during the period. Finally, Rachor Investment Advisory Services LLC acquired a new position in Cloudflare during the fourth quarter worth about $35,000. 82.68% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

NET has been the subject of a number of research analyst reports. Scotiabank raised shares of Cloudflare from a "sector perform" rating to a "sector outperform" rating and upped their price target for the company from $225.00 to $300.00 in a report on Tuesday, July 7th. The Goldman Sachs Group cut shares of Cloudflare from a "buy" rating to a "sell" rating in a research note on Wednesday, April 15th. KeyCorp reiterated an "overweight" rating on shares of Cloudflare in a report on Wednesday, June 10th. Raymond James Financial initiated coverage on shares of Cloudflare in a research note on Tuesday, July 7th. They set a "strong-buy" rating for the company. Finally, Stifel Nicolaus set a $260.00 target price on shares of Cloudflare in a report on Friday, May 8th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, six have assigned a Hold rating and four have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $261.19.

Cloudflare Price Performance

NYSE NET opened at $262.53 on Friday. The stock's 50-day moving average price is $242.42 and its two-hundred day moving average price is $212.03. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The company has a market cap of $92.80 billion, a PE ratio of -1,050.12, a PEG ratio of 274.15 and a beta of 1.67. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $291.00.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The company had revenue of $639.75 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business's revenue for the quarter was up 33.5% on a year-over-year basis. During the same period last year, the company posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. On average, analysts predict that Cloudflare, Inc. will post 0.02 EPS for the current year.

Insider Buying and Selling

In other Cloudflare news, CEO Matthew Prince sold 52,422 shares of Cloudflare stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the business's stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the sale, the insider directly owned 47,425 shares in the company, valued at approximately $10,148,001.50. This trade represents a 42.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 564,903 shares of company stock valued at $127,356,194 in the last ninety days. Company insiders own 10.66% of the company's stock.

About Cloudflare

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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