Cloudflare, Inc. $NET Stock Bought by Left Brain Wealth Management LLC

Key Points

• Left Brain Wealth Management increased its Cloudflare stake by 277.9% in the third quarter, bringing its holdings to 17,929 shares valued at approximately $6.23 million. Institutional investors collectively own 82.68% of the company.
• Cloudflare shares were trading down 9.8%, opening at $279.86, compared with a 52-week range of $158.83 to $370.35. The stock has a market capitalization of roughly $98.92 billion.
• Cloudflare exceeded quarterly expectations, reporting $0.29 in EPS versus the $0.27 consensus and revenue of $696.06 million, up 35.9% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $333.70, although insiders sold $143.4 million of stock over the past 90 days.

Left Brain Wealth Management LLC lifted its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 277.9% during the 3rd quarter, according to the company in its most recent filing with the SEC. The fund owned 17,929 shares of the company's stock after purchasing an additional 13,184 shares during the period. Cloudflare comprises about 2.0% of Left Brain Wealth Management LLC's investment portfolio, making the stock its 20th biggest position. Left Brain Wealth Management LLC's holdings in Cloudflare were worth $6,226,000 as of its most recent SEC filing.

A number of other large investors also recently added to or reduced their stakes in the business. Flagship Harbor Advisors LLC increased its position in shares of Cloudflare by 2.7% in the third quarter. Flagship Harbor Advisors LLC now owns 1,238 shares of the company's stock valued at $430,000 after acquiring an additional 33 shares during the period. Financial Management Professionals Inc. boosted its holdings in shares of Cloudflare by 6.1% during the third quarter. Financial Management Professionals Inc. now owns 623 shares of the company's stock worth $216,000 after purchasing an additional 36 shares during the period. Armstrong Advisory Group Inc. boosted its holdings in shares of Cloudflare by 31.2% during the third quarter. Armstrong Advisory Group Inc. now owns 164 shares of the company's stock worth $57,000 after purchasing an additional 39 shares during the period. CX Institutional boosted its holdings in shares of Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after purchasing an additional 44 shares during the period. Finally, Wedbush Securities Inc. grew its stake in shares of Cloudflare by 4.2% in the third quarter. Wedbush Securities Inc. now owns 1,095 shares of the company's stock worth $380,000 after purchasing an additional 44 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Insider Transactions at Cloudflare

In related news, CFO Thomas Seifert sold 12,500 shares of the company's stock in a transaction that occurred on 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 sale, the chief financial officer owned 104,958 shares in the company, valued at $31,444,367.22. This represents a 10.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 33,003 shares of the firm's stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total value of $11,494,614.87. Following the transaction, the insider directly owned 69,775 shares of the company's stock, valued at approximately $24,301,934.75. This trade represents a 32.11% 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 a total of 476,339 shares of company stock valued at $143,439,267 in the last ninety days. 10.66% of the stock is currently owned by corporate insiders.

Cloudflare Trading Down 9.8%

Shares of NET opened at $279.86 on Friday. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year 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 firm's 50-day moving average price is $320.77 and its 200-day moving average price is $247.79. The firm has a market capitalization of $98.92 billion, a price-to-earnings ratio of -482.52, a PEG ratio of 246.79 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The company had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same period in the prior year, the firm earned $0.21 earnings per share. Cloudflare's revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Sell-side analysts anticipate that Cloudflare, Inc. will post 0.03 EPS for the current year.

Analyst Upgrades and Downgrades

NET has been the topic of a number of research analyst reports. Benchmark downgraded Cloudflare to an "underperform" rating in a report on Tuesday, July 7th. Barclays increased their price objective on Cloudflare from $355.00 to $400.00 and gave the stock an "overweight" rating in a report on Monday, October 12th. Guggenheim lifted their price objective on Cloudflare from $140.00 to $160.00 and gave the stock a "sell" rating in a research report on Friday, August 7th. Robert W. Baird set a $330.00 price objective on Cloudflare in a research report on Friday, August 7th. Finally, Wells Fargo & Company boosted their target price on Cloudflare from $380.00 to $400.00 and gave the company an "overweight" rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, six have assigned a Hold rating and five have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $333.70.

About Cloudflare

Cloudflare, Inc NYSE: NET provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company's offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.

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