Cloudflare, Inc. $NET Stake Raised by Swedbank AB

Key Points

• Swedbank AB increased its Cloudflare stake by 165.1% in the fourth quarter, ending with 116,309 shares worth about $22.9 million.
• Several other institutional investors also boosted their positions, and institutional ownership stands at 82.68% of Cloudflare’s stock.
• Cloudflare reported strong quarterly results, with EPS of $0.25 beating estimates and revenue rising 33.5% year over year; analysts currently rate the stock Moderate Buy with an average price target of $236.68.

Swedbank AB grew its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 165.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 116,309 shares of the company's stock after buying an additional 72,431 shares during the period. Swedbank AB's holdings in Cloudflare were worth $22,930,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds also recently made changes to their positions in NET. Jennison Associates LLC raised its holdings in shares of Cloudflare by 802.6% during the fourth quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock valued at $367,411,000 after buying an additional 1,657,144 shares during the last quarter. Groupama Asset Managment raised its holdings in shares of Cloudflare by 82.6% during the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock valued at $450,639,000 after buying an additional 950,000 shares during the last quarter. Vanguard Group Inc. raised its holdings 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 valued at $6,934,958,000 after buying an additional 821,684 shares during the last quarter. Massachusetts Financial Services Co. MA raised its holdings in shares of Cloudflare by 25.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after buying an additional 336,768 shares during the last quarter. Finally, Federated Hermes Inc. raised its holdings in shares of Cloudflare by 63.5% during the third quarter. Federated Hermes Inc. now owns 862,009 shares of the company's stock valued at $184,979,000 after buying an additional 334,875 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on the stock. The Goldman Sachs Group lowered shares of Cloudflare from a "buy" rating to a "sell" rating in a research note on Wednesday, April 15th. Stifel Nicolaus set a $260.00 price objective on shares of Cloudflare in a research note on Friday, May 8th. Citigroup assumed coverage on shares of Cloudflare in a research note on Wednesday, April 15th. They set a "buy" rating on the stock. Zacks Research upgraded shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Finally, DZ Bank upgraded shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price objective on the stock in a research note on Friday, February 13th. Eighteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $236.68.

Insider Activity

In related news, Director John Graham-Cumming sold 2,520 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $221.58, for a total transaction of $558,381.60. Following the completion of the sale, the director directly owned 494,067 shares in the company, valued at approximately $109,475,365.86. This trade represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $210.66, for a total transaction of $11,035,213.44. Following the sale, the chief executive officer owned 25,550 shares of the company's stock, valued at $5,382,363. The trade was a 67.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 577,525 shares of company stock valued at $118,153,351 in the last ninety days. 10.89% of the stock is owned by company insiders.

Cloudflare Price Performance

NYSE NET opened at $216.24 on Tuesday. Cloudflare, Inc. has a 12 month low of $154.93 and a 12 month high of $260.00. 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 $76.43 billion, a PE ratio of -864.96 and a beta of 1.67. The company's 50 day simple moving average is $207.77 and its 200 day simple moving average is $198.90.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The business had revenue of $639.76 million for the quarter, compared to analyst estimates 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 revenue for the quarter was up 33.5% on a year-over-year basis. During the same quarter last year, the business earned $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.

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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