Cloudflare, Inc. $NET Shares Sold by Kestra Advisory Services LLC

Key Points

• Kestra Advisory Services LLC reduced its Cloudflare stake by 15.7% in the first quarter, selling 4,087 shares and ending with 21,970 shares valued at about $4.53 million.
• Cloudflare posted strong quarterly results, with revenue up 33.5% year over year to $639.75 million and earnings of $0.25 per share, beating Wall Street expectations.
• Analyst sentiment remains mixed but constructive overall: BTIG raised its price target to $314 and Morgan Stanley started coverage with an overweight rating, while the consensus rating is Moderate Buy with an average target of $252.78.

Kestra Advisory Services LLC cut its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 15.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 21,970 shares of the company's stock after selling 4,087 shares during the quarter. Kestra Advisory Services LLC's holdings in Cloudflare were worth $4,533,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of the business. HM Payson & Co. purchased a new stake in Cloudflare in the 4th quarter valued at about $25,000. Wiser Advisor Group LLC purchased a new position in Cloudflare during the third quarter worth about $26,000. Wexford Capital LP purchased a new position in Cloudflare during the third quarter worth about $30,000. Brown Brothers Harriman & Co. increased its position in shares of Cloudflare by 55.4% during the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after acquiring an additional 56 shares during the last quarter. Finally, Rachor Investment Advisory Services LLC acquired a new stake in shares of Cloudflare during the fourth quarter valued at about $35,000. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Stock Down 0.0%

Shares of NET opened at $272.94 on Friday. The company's 50-day simple moving average is $234.74 and its 200-day simple moving average is $209.47. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $291.00. The stock has a market capitalization of $96.48 billion, a PE ratio of -1,091.75, a P/E/G ratio of 278.29 and a beta of 1.67.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The firm 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 quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the business 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. Analysts forecast that Cloudflare, Inc. will post 0.02 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. BTIG Research upped their price objective on shares of Cloudflare from $269.00 to $314.00 and gave the stock a "buy" rating in a report on Friday, July 10th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a report on Monday, April 20th. Morgan Stanley initiated coverage on Cloudflare in a research report on Tuesday, July 7th. They issued an "overweight" rating on the stock. Sanford C. Bernstein restated a "market perform" rating and set a $136.00 price target on shares of Cloudflare in a research note on Wednesday, June 10th. Finally, Guggenheim restated a "sell" rating and set a $140.00 price target on shares of Cloudflare in a research report on Wednesday, June 10th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, eight have given a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, Cloudflare currently has an average rating of "Moderate Buy" and a consensus target price of $252.78.

Insider Buying and Selling at Cloudflare

In other news, insider Michelle Zatlyn sold 35,080 shares of the company's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the sale, the insider owned 47,425 shares of the company's stock, valued at approximately $10,148,001.50. This represents a 42.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total value of $13,057,795.98. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 616,185 shares of company stock valued at $137,831,055. Insiders own 10.66% of the company's stock.

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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