Cloudflare, Inc. $NET Shares Sold by Victory Capital Management Inc.

Key Points

• Victory Capital Management trimmed its Cloudflare stake by 3.6%, selling 15,634 shares and retaining 414,700 shares (about 0.12% of the company) valued at roughly $88.99 million.
• Cloudflare beat quarterly estimates with $0.28 EPS vs. $0.27 expected and $614.51M revenue vs. $591.67M expected (revenue up 33.6% YoY), but still reported a negative net margin (−4.72%) and negative ROE (−7.24%).
• Significant insider selling has occurred recently: the CFO sold 41,557 shares (~$7.69M) and the CEO sold 52,384 shares, with insiders disposing of 555,262 shares (~$104.7M) in the past three months while owning 10.89% of the company.

Victory Capital Management Inc. cut its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 3.6% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 414,700 shares of the company's stock after selling 15,634 shares during the quarter. Victory Capital Management Inc. owned about 0.12% of Cloudflare worth $88,990,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also made changes to their positions in the company. Rakuten Investment Management Inc. acquired a new position in Cloudflare in the 3rd quarter worth $138,660,000. Allianz Asset Management GmbH grew its stake in shares of Cloudflare by 322.4% during the third quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock valued at $13,987,000 after acquiring an additional 49,749 shares in the last quarter. National Pension Service increased its position in shares of Cloudflare by 1.0% during the third quarter. National Pension Service now owns 618,662 shares of the company's stock worth $132,759,000 after acquiring an additional 5,939 shares during the last quarter. Westfield Capital Management Co. LP purchased a new position in Cloudflare in the second quarter valued at about $87,868,000. Finally, Swedbank AB grew its stake in Cloudflare by 27.7% during the 3rd quarter. Swedbank AB now owns 43,878 shares of the company's stock valued at $9,416,000 after purchasing an additional 9,527 shares in the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Stock Performance

NET opened at $186.06 on Thursday. The firm has a market capitalization of $65.17 billion, a P/E ratio of -641.56 and a beta of 1.98. Cloudflare, Inc. has a 12-month low of $89.42 and a 12-month high of $260.00. The stock's 50 day moving average price is $184.65 and its two-hundred day moving average price is $202.60. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.01. The firm had revenue of $614.51 million during the quarter, compared to analysts' expectations of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The company's revenue for the quarter was up 33.6% compared to the same quarter last year. During the same quarter last year, the company earned $0.19 earnings per share. On average, equities analysts forecast that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Analysts Set New Price Targets

NET has been the subject of a number of recent analyst reports. Wells Fargo & Company raised their price target on shares of Cloudflare from $265.00 to $270.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. Oppenheimer initiated coverage on shares of Cloudflare in a research note on Monday, November 10th. They set an "outperform" rating and a $260.00 price objective on the stock. Guggenheim lifted their target price on Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a research report on Wednesday, February 11th. Royal Bank Of Canada boosted their price objective on shares of Cloudflare from $230.00 to $240.00 and gave the company an "outperform" rating in a research report on Wednesday, February 11th. Finally, Mizuho lowered their price objective on Cloudflare from $280.00 to $255.00 and set an "outperform" rating for the company in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, Cloudflare has an average rating of "Moderate Buy" and a consensus target price of $230.70.

Insider Buying and Selling at Cloudflare

In related news, CFO Thomas J. Seifert sold 41,557 shares of the business's stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $185.04, for a total transaction of $7,689,707.28. Following the completion of the sale, the chief financial officer directly owned 85,452 shares of the company's stock, valued at $15,812,038.08. The trade was a 32.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $201.23, for a total transaction of $10,541,232.32. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 555,262 shares of company stock worth $104,705,441. Company insiders own 10.89% 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.