Cloudflare, Inc. $NET Stock Sold by Glynn Capital Management LLC

Key Points

• Glynn Capital Management cut its Cloudflare stake by 26.7% in the third quarter, selling 12,771 shares and retaining 35,115 shares worth approximately $12.2 million. Institutional investors still own 82.68% of Cloudflare.
• Cloudflare shares have surged roughly 28% over the past month and 65% over six months, but the stock trades at a premium valuation and remains unprofitable, raising the possibility of profit-taking or consolidation.
• Analyst sentiment remains generally positive: BTIG upgraded Cloudflare to “Buy” and lifted its price target to $413, while the company recently exceeded quarterly revenue and EPS expectations and reported 35.9% year-over-year revenue growth.

Glynn Capital Management LLC reduced its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 26.7% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 35,115 shares of the company's stock after selling 12,771 shares during the quarter. Cloudflare comprises 3.6% of Glynn Capital Management LLC's investment portfolio, making the stock its 9th biggest holding. Glynn Capital Management LLC's holdings in Cloudflare were worth $12,195,000 as of its most recent SEC filing.

A number of other institutional investors have also recently modified their holdings of NET. Violich Capital Management Inc. purchased a new position in Cloudflare in the third quarter worth $226,000. Versant Capital Management Inc boosted its position in shares of Cloudflare by 14.8% during the 3rd quarter. Versant Capital Management Inc now owns 1,342 shares of the company's stock worth $466,000 after purchasing an additional 173 shares in the last quarter. Burkett Financial Services LLC acquired a new position in shares of Cloudflare during the 3rd quarter worth $76,000. QRG Capital Management Inc. grew its stake in shares of Cloudflare by 26.9% during the 2nd quarter. QRG Capital Management Inc. now owns 89,277 shares of the company's stock worth $21,898,000 after purchasing an additional 18,914 shares during the period. Finally, Envestnet Portfolio Solutions Inc. increased its holdings in shares of Cloudflare by 11.4% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 7,229 shares of the company's stock valued at $1,773,000 after purchasing an additional 738 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: BTIG upgraded Cloudflare to “Buy” and raised its price target from $382 to $413, implying additional upside and reinforcing bullish analyst sentiment. BTIG Research Issues Positive Forecast for Cloudflare Stock Price
• Positive Sentiment: Recent product announcements and company data showing Cloudflare as the fastest provider across 74% of the top 1,000 networks have supported investor enthusiasm for its internet infrastructure and AI-related traffic opportunity. Why Cloudflare Stock Is Trading Up Today
• Positive Sentiment: A partnership with Deutsche Telekom could expand Cloudflare’s European enterprise distribution and create additional security and connectivity growth opportunities. Can Cloudflare’s Deutsche Telekom Deal Drive Enterprise Growth?
• Neutral Sentiment: NET has gained roughly 28% in the past month and about 65% over six months, reaching a new 12-month high. The momentum reflects demand for AI security and growth among large customers, but the sharp advance increases the likelihood of consolidation. Cloudflare Just Gained 28% in a Month
• Negative Sentiment: Investors may be taking profits after the extended rally, particularly because Cloudflare continues to trade at a premium valuation while margin pressure and negative net profitability remain concerns. The latest decline appears more consistent with valuation-related profit-taking than a new fundamental setback. NET Stock Surges 65% in 6 Months

Cloudflare Price Performance

Shares of NYSE NET opened at $355.71 on Wednesday. The stock has a market cap of $125.73 billion, a price-to-earnings ratio of -613.30, a PEG ratio of 285.92 and a beta of 1.65. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $370.35. The company's 50-day moving average price is $311.83 and its 200 day moving average price is $257.58. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22.

Cloudflare (NYSE:NET - Get Free Report) last announced its 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. The company had revenue of $696.06 million during the quarter, compared to analysts' expectations of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm's quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, research analysts forecast that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

NET has been the subject of several recent analyst reports. BTIG Research raised their price objective on shares of Cloudflare from $382.00 to $413.00 and gave the company a "buy" rating in a research note on Tuesday. Susquehanna upped their target price on shares of Cloudflare from $200.00 to $300.00 and gave the stock a "neutral" rating in a research report on Monday, August 10th. Truist Financial increased their target price on shares of Cloudflare from $300.00 to $350.00 and gave the company a "buy" rating in a report on Friday, August 7th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a research report on Friday, July 17th. Finally, TD Cowen boosted their price target on Cloudflare from $300.00 to $355.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have assigned a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $326.33.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 10,000 shares of the firm's stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $332.46, for a total transaction of $3,324,600.00. Following the sale, the chief financial officer directly owned 107,902 shares of the company's stock, valued at $35,873,098.92. This trade represents a 8.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 2,538 shares of Cloudflare stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $304.68, for a total transaction of $773,277.84. Following the sale, the insider owned 112,082 shares of the company's stock, valued at approximately $34,149,143.76. This trade represents a 2.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 392,833 shares of company stock valued at $115,040,919. 10.66% of the stock is owned by company insiders.

Cloudflare Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.

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