Cloudflare, Inc. $NET Shares Sold by Sands Capital Management LLC

Key Points

• Sands Capital Management trimmed its Cloudflare stake by 2.0% in the fourth quarter, but still held 3.73 million shares worth about $735.6 million, making NET its 19th-largest position.
• Cloudflare reported a Q1 beat with EPS of $0.25 versus $0.23 expected and revenue of $639.8 million versus $620.8 million expected, with revenue up 33.5% year over year.
• Analyst sentiment remains mostly constructive: multiple firms raised price targets, and the stock carries a Moderate Buy consensus with a mean target of $241.35.

Sands Capital Management LLC decreased its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 2.0% during the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,731,287 shares of the company's stock after selling 77,032 shares during the period. Cloudflare comprises 2.2% of Sands Capital Management LLC's investment portfolio, making the stock its 19th biggest position. Sands Capital Management LLC owned approximately 1.07% of Cloudflare worth $735,623,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of the company. IMA Advisory Services Inc. lifted its stake in Cloudflare by 4.5% during the 4th quarter. IMA Advisory Services Inc. now owns 1,290 shares of the company's stock worth $254,000 after acquiring an additional 55 shares in the last quarter. Brown Brothers Harriman & Co. lifted its stake in Cloudflare by 55.4% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock worth $34,000 after acquiring an additional 56 shares in the last quarter. Silver Oak Securities Incorporated lifted its stake in Cloudflare by 5.5% during the 4th quarter. Silver Oak Securities Incorporated now owns 1,090 shares of the company's stock worth $218,000 after acquiring an additional 57 shares in the last quarter. Certuity LLC lifted its stake in Cloudflare by 1.8% during the 4th quarter. Certuity LLC now owns 3,156 shares of the company's stock worth $622,000 after acquiring an additional 57 shares in the last quarter. Finally, Rothschild Investment LLC lifted its stake in Cloudflare by 37.4% during the 3rd quarter. Rothschild Investment LLC now owns 224 shares of the company's stock worth $48,000 after acquiring an additional 61 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare Price Performance

NET stock opened at $227.91 on Monday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The firm has a market capitalization of $80.56 billion, a P/E ratio of -911.62, a P/E/G ratio of 481.14 and a beta of 1.70. The business's 50-day moving average is $216.10 and its two-hundred day moving average is $201.73. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $276.82.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The company had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.Cloudflare's revenue for the quarter was up 33.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.16 EPS. 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 anticipate that Cloudflare, Inc. will post 0.01 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Cloudflare news, insider Alissa Michelle Starzak sold 16,243 shares of the stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $216.15, for a total value of $3,510,924.45. Following the sale, the insider owned 118,395 shares of the company's stock, valued at $25,591,079.25. This trade represents a 12.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 10,000 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $200.61, for a total value of $2,006,100.00. Following the completion of the sale, the chief financial officer directly owned 212,014 shares in the company, valued at $42,532,128.54. This represents a 4.50% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 475,400 shares of company stock worth $100,851,370 over the last ninety days. Company insiders own 10.66% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on NET shares. Zacks Research raised Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Needham & Company LLC increased their target price on Cloudflare from $250.00 to $280.00 and gave the stock a "buy" rating in a research note on Wednesday, June 10th. Guggenheim reissued a "sell" rating and set a $140.00 target price on shares of Cloudflare in a research note on Wednesday. Mizuho increased their target price on Cloudflare from $235.00 to $260.00 and gave the stock an "outperform" rating in a research note on Wednesday. Finally, Cantor Fitzgerald reissued a "neutral" rating and set a $230.00 target price (up from $224.00) on shares of Cloudflare in a research note on Wednesday. Twenty investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $241.35.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist Financial raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, implying further upside from current levels. Truist raises Cloudflare price target
• Positive Sentiment: Morgan Stanley also sharply increased its Cloudflare price target, adding to the bullish analyst backdrop and reinforcing the view that expectations for the company are improving. Morgan Stanley raises Cloudflare price target
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, while other reports noted Wall Street’s overall average recommendation remains equivalent to a Buy, supporting investor confidence in the stock. Barclays keeps buy rating on Cloudflare
• Positive Sentiment: Zacks said Cloudflare may be well poised for a surge because of solid earnings estimate revisions, which often signals improving fundamentals and stronger near-term sentiment. Zacks says Cloudflare may surge
• Neutral Sentiment: Jim Cramer commented that Cloudflare’s long-term direction looks “pretty fabulous,” but also noted the stock has been volatile, making the takeaway more of a commentary on long-term prospects than a direct catalyst. Jim Cramer comments on Cloudflare
• Negative Sentiment: One report flagged a new sell recommendation for Cloudflare, suggesting some analysts remain cautious despite the broader bullish tone. Cloudflare new sell recommendation

Cloudflare 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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