Cloudflare, Inc. $NET Stake Lessened by TD Asset Management Inc

Key Points

• TD Asset Management Inc reduced its stake in Cloudflare by 5.7% in Q2, holding 76,840 shares worth approximately $15 million after selling 4,648 shares.
• Insider sales included Michelle Zatlyn who sold 25,641 shares and Matthew Prince who sold 52,277 shares, reducing their holdings by 63.76% and 99.80%, respectively.
• Analysts have adjusted their target prices for Cloudflare, with recent upgrades reflecting increased confidence, including KeyCorp raising their target from $210 to $235.

TD Asset Management Inc lessened its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 5.7% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 76,840 shares of the company's stock after selling 4,648 shares during the period. TD Asset Management Inc's holdings in Cloudflare were worth $15,048,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the stock. Vanguard Group Inc. increased its stake in shares of Cloudflare by 1.8% in the first quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock worth $3,475,011,000 after buying an additional 538,850 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Cloudflare by 33.5% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company's stock valued at $352,610,000 after purchasing an additional 786,063 shares during the last quarter. American Century Companies Inc. increased its stake in Cloudflare by 34.5% during the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock valued at $342,287,000 after purchasing an additional 779,819 shares during the last quarter. Northern Trust Corp increased its stake in Cloudflare by 1.7% during the first quarter. Northern Trust Corp now owns 1,880,888 shares of the company's stock valued at $211,957,000 after purchasing an additional 31,745 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in Cloudflare by 8.1% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,321,208 shares of the company's stock valued at $148,887,000 after purchasing an additional 99,448 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Insiders Place Their Bets

In related news, insider Michelle Zatlyn sold 25,641 shares of the company's stock in a transaction dated Thursday, October 9th. The shares were sold at an average price of $215.38, for a total value of $5,522,558.58. Following the completion of the sale, the insider owned 14,575 shares of the company's stock, valued at $3,139,163.50. This represents a 63.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Matthew Prince sold 52,277 shares of the company's stock in a transaction dated Thursday, October 16th. The stock was sold at an average price of $213.94, for a total transaction of $11,184,141.38. Following the completion of the sale, the chief executive officer directly owned 107 shares of the company's stock, valued at $22,891.58. The trade was a 99.80% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 729,540 shares of company stock valued at $150,883,922. Corporate insiders own 10.89% of the company's stock.

Cloudflare Stock Performance

NET stock opened at $209.94 on Friday. The company has a market capitalization of $73.16 billion, a P/E ratio of -617.47 and a beta of 1.99. The company has a 50-day simple moving average of $212.65 and a 200 day simple moving average of $178.63. Cloudflare, Inc. has a fifty-two week low of $85.60 and a fifty-two week high of $230.10. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.03. The business had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The company's quarterly revenue was up 27.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.20 earnings per share. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Sell-side analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts have weighed in on NET shares. KeyCorp boosted their target price on shares of Cloudflare from $210.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Needham & Company LLC boosted their target price on shares of Cloudflare from $200.00 to $240.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Wells Fargo & Company upped their price target on shares of Cloudflare from $225.00 to $250.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Mizuho upped their price target on shares of Cloudflare from $220.00 to $240.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Finally, Piper Sandler upped their price target on shares of Cloudflare from $151.00 to $224.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $196.54.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.

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