Cloudflare, Inc. $NET Stock: Allspring Global Investments Holdings LLC Lowers Position

Key Points

• Allspring Global Investments cut its Cloudflare stake by 12.2% in the third quarter, selling 49,651 shares and retaining 357,005 shares valued at about $125.3 million. Institutional investors overall own 82.68% of the stock.
• Cloudflare reported quarterly revenue of $782.5 million, up 39.2% year over year and above estimates, while EPS of $0.38 beat the $0.34 consensus.
• Analyst views are mixed, with some firms upgrading the stock and others lowering price targets; insiders have also sold shares. The article flags Cloudflare’s high valuation and margin challenges as potential risks.

Allspring Global Investments Holdings LLC cut its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 12.2% in the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 357,005 shares of the company's stock after selling 49,651 shares during the quarter. Allspring Global Investments Holdings LLC owned 0.10% of Cloudflare worth $125,309,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Jennison Associates LLC increased its stake in Cloudflare by 135.8% in the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after purchasing an additional 2,530,872 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of Cloudflare by 4.9% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,046,812 shares of the company's stock worth $363,537,000 after acquiring an additional 48,956 shares during the last quarter. Amundi raised its holdings in shares of Cloudflare by 2.0% in the first quarter. Amundi now owns 1,707,256 shares of the company's stock worth $352,275,000 after acquiring an additional 32,804 shares during the last quarter. National Pension Service lifted its position in shares of Cloudflare by 1.6% in the second quarter. National Pension Service now owns 959,987 shares of the company's stock valued at $235,466,000 after acquiring an additional 15,546 shares in the last quarter. Finally, Swiss National Bank lifted its position in shares of Cloudflare by 8.1% in the first quarter. Swiss National Bank now owns 927,200 shares of the company's stock valued at $191,318,000 after acquiring an additional 69,800 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Stock Performance

Shares of NET stock opened at $295.56 on Tuesday. The company's fifty day simple moving average is $318.15 and its 200-day simple moving average is $250.39. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $370.35. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The company has a market cap of $104.47 billion, a PE ratio of -434.64, a P/E/G ratio of 206.44 and a beta of 1.37.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The business had revenue of $782.51 million for the quarter, compared to analyst estimates of $737.16 million. During the same quarter in the previous year, the business posted $0.27 EPS. The business's quarterly revenue was up 39.2% on a year-over-year basis. As a group, equities research analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current year.

Insider Buying and Selling at Cloudflare

In other news, CFO Thomas J. Seifert sold 12,500 shares of the stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $299.59, for a total value of $3,744,875.00. Following the completion of the sale, the chief financial officer owned 104,958 shares in the company, valued at approximately $31,444,367.22. This trade represents a 10.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $312.22, for a total value of $1,561,100.00. Following the completion of the sale, the director owned 878,073 shares of the company's stock, valued at approximately $274,151,952.06. This trade represents a 0.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 256,537 shares of company stock valued at $78,750,901 over the last three months. 10.66% of the stock is owned by company insiders.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q3 revenue rose 39.2% year over year to $782.5 million, beating expectations, while non-GAAP EPS of $0.38 also topped consensus. The company’s next-quarter revenue forecast was above analysts’ estimates, and management raised its 2026 outlook. NET Q3 2026 deep dive
• Positive Sentiment: Management cited strength in developer and security demand, including AI-related usage, and moved its target for GAAP profitability forward to Q4 2026. That could reassure investors that growth may translate into improved earnings. Cloudflare Q3 earnings call
• Neutral Sentiment: Analyst actions were mixed: Wolfe Research upgraded Cloudflare to Outperform, while Scotiabank, Needham and Cantor Fitzgerald lowered price targets. The differing views underscore uncertainty about how much of the strong outlook is already reflected in the shares. Wolfe Research upgrade Scotiabank price target
• Negative Sentiment: Reports flagged a growing margin challenge even as revenue growth accelerated. Cloudflare’s high valuation may also leave the stock vulnerable if growth or progress toward profitability disappoints. Cloudflare's best quarter ever hit with a growing margin challenge Cloudflare sell-off and valuation

Analyst Upgrades and Downgrades

NET has been the subject of several analyst reports. BTIG Research boosted their price target on Cloudflare from $382.00 to $413.00 and gave the company a "buy" rating in a report on Tuesday, October 6th. Citigroup reissued a "market outperform" rating on shares of Cloudflare in a research note on Monday, August 31st. Stephens began coverage on Cloudflare in a report on Tuesday, November 3rd. They set an "overweight" rating for the company. UBS Group initiated coverage on Cloudflare in a research report on Tuesday, November 3rd. They issued a "buy" rating on the stock. Finally, Susquehanna raised their price objective on Cloudflare from $200.00 to $300.00 and gave the stock a "neutral" rating in a report on Monday, August 10th. Twenty-five investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $335.33.

Cloudflare Company Profile

Cloudflare, Inc provides cloud-based services that help businesses and other organizations protect, connect and improve the performance of websites, applications and networks. Its global network delivers services including content delivery, domain name system management, and protection against distributed denial-of-service attacks and other cyber threats.

The company also offers web application security, bot management and Zero Trust services for securing access to applications and internal networks.

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