Cloudflare, Inc. $NET Shares Sold by Legal & General Group Plc

Key Points

• Legal & General Group Plc cut its Cloudflare stake by 7.9% in Q3, selling 231,819 shares and finishing with 2,693,645 shares worth $578.0M, while institutional investors own 82.68% of the stock (Vanguard holds ~32.3M shares worth ~$6.93B).
• Wall Street has a consensus rating of Moderate Buy on Cloudflare with a consensus price target of $230.70, driven by multiple upgraded price targets and buy/outperform ratings.
• Cloudflare recently beat quarterly EPS estimates ($0.28 vs. $0.27) and reported revenue of $614.5M (+33.6% YoY), but insiders have been net sellers—551,851 shares sold over the last 90 days (~$102.7M).

Legal & General Group Plc decreased its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 7.9% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 2,693,645 shares of the company's stock after selling 231,819 shares during the quarter. Legal & General Group Plc owned 0.77% of Cloudflare worth $578,029,000 at the end of the most recent reporting period.

A number of other large investors also recently added to or reduced their stakes in NET. Vanguard Group Inc. increased its position in shares of Cloudflare by 2.6% during the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after purchasing an additional 821,684 shares in the last quarter. Geode Capital Management LLC raised its stake in Cloudflare by 5.1% during the second quarter. Geode Capital Management LLC now owns 5,536,679 shares of the company's stock worth $1,081,533,000 after purchasing an additional 270,227 shares during the period. Norges Bank acquired a new position in Cloudflare in the second quarter valued at approximately $541,462,000. Charles Schwab Investment Management Inc. grew its holdings in shares of Cloudflare by 3.6% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 1,368,906 shares of the company's stock worth $268,073,000 after purchasing an additional 47,698 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its stake in Cloudflare by 96.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,302,893 shares of the company's stock worth $279,588,000 after buying an additional 639,245 shares during the period. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on NET shares. KeyCorp restated an "overweight" rating on shares of Cloudflare in a research report on Wednesday, February 11th. Royal Bank Of Canada raised their price objective on shares of Cloudflare from $230.00 to $240.00 and gave the company an "outperform" rating in a report on Wednesday, February 11th. BTIG Research boosted their target price on Cloudflare from $199.00 to $243.00 and gave the stock a "buy" rating in a research note on Wednesday, February 11th. Jefferies Financial Group boosted their price target on shares of Cloudflare from $185.00 to $225.00 and gave the company a "hold" rating in a research report on Wednesday, February 11th. Finally, Wolfe Research reissued a "peer perform" rating on shares of Cloudflare in a report on Monday, January 26th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Cloudflare presently has a consensus rating of "Moderate Buy" and a consensus price target of $230.70.

Cloudflare Trading Up 3.1%

Shares of Cloudflare stock opened at $207.69 on Wednesday. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98. The business has a 50 day moving average price of $184.48 and a 200 day moving average price of $202.74. The company has a market capitalization of $72.75 billion, a P/E ratio of -716.14 and a beta of 1.98. Cloudflare, Inc. has a 1 year low of $89.42 and a 1 year high of $260.00.

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

Insiders Place Their Bets

In other Cloudflare news, Director John Graham-Cumming sold 2,520 shares of Cloudflare stock in a transaction dated Monday, February 9th. The stock was sold at an average price of $173.35, for a total value of $436,842.00. Following the completion of the sale, the director owned 495,191 shares in the company, valued at $85,841,359.85. The trade was a 0.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CAO Janel Riley sold 23,332 shares of the company's stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $190.00, for a total transaction of $4,433,080.00. Following the transaction, the chief accounting officer directly owned 56,791 shares of the company's stock, valued at approximately $10,790,290. This represents a 29.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 551,851 shares of company stock valued at $102,673,182. 10.89% of the stock is currently owned by company insiders.

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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