Cloudflare, Inc. $NET Stock Sold by Commonwealth Equity Services LLC

Key Points

• Commonwealth Equity Services cut its Cloudflare stake by 25.1% in the third quarter, selling 28,391 shares. It retained 84,823 shares valued at about $29.5 million.
• Cloudflare’s third-quarter revenue rose 39.2% year over year to $782.5 million, and adjusted EPS of $0.38 beat estimates. The company also raised its revenue and earnings outlook.
• Despite strong growth, profitability remains a concern: Cloudflare reported a GAAP operating loss and pressure on margins, while its high valuation could leave the stock vulnerable to growth disappointments.

Commonwealth Equity Services LLC lowered its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 25.1% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 84,823 shares of the company's stock after selling 28,391 shares during the quarter. Commonwealth Equity Services LLC's holdings in Cloudflare were worth $29,457,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Jennison Associates LLC raised its stake in shares of Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after acquiring an additional 2,530,872 shares during the last quarter. Alyeska Investment Group L.P. bought a new stake in shares of Cloudflare during the second quarter valued at approximately $75,595,000. Janus Henderson Group PLC grew its stake in shares of Cloudflare by 583.1% during the first quarter. Janus Henderson Group PLC now owns 241,367 shares of the company's stock valued at $49,805,000 after purchasing an additional 206,032 shares during the last quarter. Styrax Capital LP bought a new stake in shares of Cloudflare during the first quarter valued at approximately $41,268,000. Finally, Corient Private Wealth LP increased its holdings in shares of Cloudflare by 837.5% in the second quarter. Corient Private Wealth LP now owns 208,103 shares of the company's stock valued at $51,044,000 after purchasing an additional 185,906 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Third-quarter revenue rose 39.2% year over year to $782.5 million, beating estimates, while adjusted EPS of $0.38 also topped forecasts. The company cited strong enterprise demand and growing adoption of its developer platform. Cloudflare Q3 Earnings Beat Estimates on Robust Enterprise Demand
• Positive Sentiment: Cloudflare raised its 2026 outlook: full-year revenue guidance is about $3.0 billion and EPS guidance is $1.35, above consensus estimates. Fourth-quarter revenue guidance of $845 million–$846 million and EPS guidance of $0.43 also exceeded expectations. Why Cloudflare Stock Opened Higher Today
• Positive Sentiment: Further signs of AI-related momentum include Cloudflare’s first revenue from AI bot traffic and a developer base that doubled to 10 million. Analysts at Wolfe Research upgraded the shares to Outperform. Why Cloudflare Stock Opened Higher Today
• Neutral Sentiment: Analyst actions were mixed: Piper Sandler reaffirmed Overweight and raised its target, while Scotiabank, Needham and Cantor Fitzgerald lowered targets; the latter firms retained positive or neutral ratings. Scotiabank rating update
• Negative Sentiment: Some profitability measures lagged growth: gross margin faced pressure, free cash flow grew more slowly than revenue, and the GAAP operating loss widened. Cloudflare’s high valuation may make the stock sensitive to any slowdown or disappointment. Cloudflare Sales Up 39%, Gross Margin Falls

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the stock. UBS Group started coverage on shares of Cloudflare in a research report on Tuesday, November 3rd. They issued a "buy" rating for the company. KeyCorp upped their price objective on Cloudflare from $300.00 to $375.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Zacks Research upgraded Cloudflare from a "strong sell" rating to a "hold" rating in a research report on Tuesday, November 3rd. Susquehanna lifted their target price on Cloudflare from $200.00 to $300.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Finally, Citizens Jmp reissued a "market outperform" rating and issued a $394.00 target price on shares of Cloudflare in a research note on Monday, August 31st. Twenty-six equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $332.82.

Cloudflare Stock Performance

Cloudflare stock opened at $269.20 on Monday. The company has a market cap of $95.15 billion, a PE ratio of -395.88, a PEG ratio of 208.12 and a beta of 1.38. The company has a current ratio of 3.80, a quick ratio of 3.80 and a debt-to-equity ratio of 3.03. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $370.35. The company's 50-day moving average is $318.23 and its two-hundred day moving average is $249.77.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.38 EPS for the quarter, topping the consensus estimate of $0.34 by $0.04. The company had revenue of $782.51 million during the quarter, compared to analysts' expectations of $737.16 million. Cloudflare had a negative net margin of 8.75% and a negative return on equity of 6.05%. Cloudflare's revenue was up 39.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.27 EPS. Equities analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Insider Activity at Cloudflare

In other Cloudflare news, Director Carl Ledbetter sold 5,000 shares of the firm's stock in a transaction that occurred on 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 transaction, the director directly 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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 Tuesday, September 8th. The shares were sold at an average price of $277.43, for a total transaction of $9,156,022.29. Following the completion of the transaction, the insider directly owned 69,775 shares in the company, valued at approximately $19,357,678.25. The trade was a 32.11% 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 have sold 256,537 shares of company stock worth $78,750,901 over the last ninety days. Company insiders own 10.66% of the company's stock.

About Cloudflare

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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