Cloudflare, Inc. $NET Stock Position Increased by Davis Rea LTD.

Key Points

• Davis Rea LTD. increased its Cloudflare stake 16.8% in Q4 to 71,576 shares worth $14.11M, making NET its 9th largest holding amid roughly 82.7% institutional ownership.
• Insiders have been net sellers recently — CEO Michelle Zatlyn sold 25,641 shares under a 10b5‑1 plan and insiders disposed of 624,247 shares (~$122M) in the last 90 days, while insiders still own about 10.9% of the company.
• Analysts hold a consensus "Moderate Buy" with an average target of $232.62; Cloudflare beat revenue and EPS estimates this quarter ($614.5M revenue, $0.28 EPS) but remains unprofitable on a net margin basis and is expected to report negative FY EPS.

Davis Rea LTD. grew its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 16.8% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 71,576 shares of the company's stock after acquiring an additional 10,303 shares during the quarter. Cloudflare comprises about 3.5% of Davis Rea LTD.'s investment portfolio, making the stock its 9th biggest holding. Davis Rea LTD.'s holdings in Cloudflare were worth $14,111,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Rakuten Investment Management Inc. purchased a new position in shares of Cloudflare in the third quarter worth approximately $138,660,000. Allianz Asset Management GmbH boosted its holdings in shares of Cloudflare by 322.4% in the third quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock worth $13,987,000 after buying an additional 49,749 shares during the last quarter. National Pension Service boosted its holdings in shares of Cloudflare by 1.0% in the third quarter. National Pension Service now owns 618,662 shares of the company's stock worth $132,759,000 after buying an additional 5,939 shares during the last quarter. Massachusetts Financial Services Co. MA boosted its holdings in shares of Cloudflare by 25.8% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock worth $323,259,000 after buying an additional 336,768 shares during the last quarter. Finally, Swedbank AB boosted its holdings in shares of Cloudflare by 27.7% in the third quarter. Swedbank AB now owns 43,878 shares of the company's stock worth $9,416,000 after buying an additional 9,527 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Analysts Set New Price Targets

NET has been the topic of a number of research reports. New Street Research set a $140.00 price objective on shares of Cloudflare in a report on Wednesday, February 11th. DZ Bank raised shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price objective on the stock in a report on Friday, February 13th. Scotiabank dropped their price objective on shares of Cloudflare from $255.00 to $225.00 and set a "sector perform" rating on the stock in a report on Wednesday, February 11th. Mizuho dropped their price objective on shares of Cloudflare from $255.00 to $235.00 and set an "outperform" rating on the stock in a report on Tuesday, April 14th. Finally, Susquehanna set a $190.00 price objective on shares of Cloudflare in a report on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $232.62.

Cloudflare Price Performance

NYSE NET opened at $205.21 on Friday. Cloudflare, Inc. has a 12 month low of $112.90 and a 12 month high of $260.00. The stock has a market cap of $72.23 billion, a price-to-earnings ratio of -707.61 and a beta of 1.87. The company's 50 day moving average is $198.40 and its two-hundred day moving average is $200.66. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 1.35.

Cloudflare (NYSE:NET - Get Free Report) last released its 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. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The company had revenue of $614.51 million for the quarter, compared to analysts' expectations of $591.67 million. During the same quarter last year, the business earned $0.19 EPS. The firm's revenue was up 33.6% compared to the same quarter last year. As a group, research analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of the firm's stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $209.15, for a total transaction of $5,362,815.15. Following the sale, the insider owned 34,514 shares in the company, valued at approximately $7,218,603.10. This trade represents a 42.62% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $209.60, for a total transaction of $27,876.80. Following the sale, the director owned 10,322 shares in the company, valued at approximately $2,163,491.20. The trade was a 1.27% 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 624,247 shares of company stock worth $122,080,874 in the last 90 days. Insiders own 10.89% of the company's stock.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Technical/relative strength signal — Cloudflare earned an 83 RS rating, indicating rising market leadership that can attract momentum/trend-following buyers. Stocks showing rising market leadership: Cloudflare earns 83 RS rating
• Positive Sentiment: Analyst/consensus backdrop remains constructive — many analysts still rate NET a Buy or Moderate Buy and the consensus target sits above the current price, supporting medium-term demand. MarketBeat Cloudflare coverage
• Neutral Sentiment: Market-performance headlines — mainstream outlets are reporting NET fell more than the broader market today, which can amplify attention but primarily reflects intraday trading flow rather than new company fundamentals. Cloudflare (NET) Falls More Steeply Than Broader Market
• Neutral Sentiment: Analyst stance unchanged at some shops — Bernstein remains at a Hold, a reminder that not all analysts are upgrading, which can temper buying despite positive signals. Bernstein Remains a Hold on Cloudflare (NET)
• Negative Sentiment: Valuation/AI skepticism — a Seeking Alpha piece argues Cloudflare’s "agentic AI" premium may be overdone and forecasts further consolidation, which can pressure momentum names tied to AI narratives. Cloudflare's Agentic AI Premium Overly Done - Further Consolidation Likely
• Negative Sentiment: Large insider selling — CEO Michelle Zatlyn has executed multiple, sizable sales under a 10b5‑1 plan (recently ~25,641 shares), which the market often reads as increased insider liquidity and can trigger cautious positioning by investors. Insider Selling: Cloudflare NYSE: NET Insider Sells 25,641 Shares of Stock
• Negative Sentiment: Profit-taking after run-up / mixed fundamentals — despite a recent revenue beat and strong YoY growth, Cloudflare still posts negative net margins and a negative EPS outlook for the fiscal year, making it sensitive to valuation pressure when sentiment shifts. Cloudflare fundamentals and analyst notes

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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