Connective Capital Management LLC Purchases New Stake in Cloudflare, Inc. $NET

Key Points

• Connective Capital Management LLC has acquired a new stake in Cloudflare, purchasing 12,682 shares for approximately $1,429,000, which represents 1.3% of its holdings.
• Cloudflare's latest quarterly earnings showed a revenue increase of 27.8% year-over-year, reporting $512.32 million and an EPS of $0.21, surpassing analysts' expectations.
• Institutional ownership in Cloudflare is high, with 82.68% of its stock held by institutional investors, indicating strong support from larger financial entities.

Connective Capital Management LLC purchased a new stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 12,682 shares of the company's stock, valued at approximately $1,429,000. Cloudflare accounts for 1.3% of Connective Capital Management LLC's holdings, making the stock its 21st biggest position.

Several other institutional investors also recently added to or reduced their stakes in NET. Dimensional Fund Advisors LP grew its position in Cloudflare by 5.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 361,607 shares of the company's stock valued at $38,943,000 after buying an additional 18,457 shares during the period. MML Investors Services LLC lifted its holdings in Cloudflare by 7.7% during the fourth quarter. MML Investors Services LLC now owns 30,658 shares of the company's stock valued at $3,301,000 after purchasing an additional 2,186 shares during the last quarter. Tower Research Capital LLC TRC lifted its holdings in Cloudflare by 184.3% during the fourth quarter. Tower Research Capital LLC TRC now owns 2,547 shares of the company's stock valued at $274,000 after purchasing an additional 1,651 shares during the last quarter. Stifel Financial Corp lifted its holdings in Cloudflare by 30.6% during the fourth quarter. Stifel Financial Corp now owns 47,050 shares of the company's stock valued at $5,066,000 after purchasing an additional 11,011 shares during the last quarter. Finally, Integrated Wealth Concepts LLC lifted its holdings in Cloudflare by 59.6% during the fourth quarter. Integrated Wealth Concepts LLC now owns 9,068 shares of the company's stock valued at $976,000 after purchasing an additional 3,388 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Cloudflare Trading Up 1.6%

NET stock opened at $195.9330 on Monday. The company has a market capitalization of $68.28 billion, a PE ratio of -576.27 and a beta of 1.84. Cloudflare, Inc. has a one year low of $74.88 and a one year high of $219.00. The company's 50 day moving average price is $193.75 and its two-hundred day moving average price is $156.93. The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.18 by $0.03. The firm had revenue of $512.32 million for the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The business's revenue was up 27.8% compared to the same quarter last year. During the same period last year, the firm posted $0.20 earnings per share. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Buying and Selling at Cloudflare

In other news, CFO Thomas J. Seifert sold 34,270 shares of the firm's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $200.17, for a total value of $6,859,825.90. Following the transaction, the chief financial officer owned 241,550 shares in the company, valued at approximately $48,351,063.50. This trade represents a 12.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Thomas J. Seifert sold 59,130 shares of the firm's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the completion of the transaction, the chief financial officer owned 241,550 shares in the company, valued at $48,382,465. This represents a 19.67% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 630,323 shares of company stock valued at $118,661,105. 10.89% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research firms have commented on NET. Cowen reaffirmed a "buy" rating on shares of Cloudflare in a report on Monday, June 16th. Susquehanna lowered their price target on shares of Cloudflare from $170.00 to $140.00 and set a "neutral" rating on the stock in a report on Monday, May 12th. Stifel Nicolaus increased their price target on shares of Cloudflare from $175.00 to $230.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Jefferies Financial Group lowered their price target on shares of Cloudflare from $170.00 to $150.00 and set a "hold" rating on the stock in a report on Friday, May 9th. Finally, Piper Sandler increased their price target on shares of Cloudflare from $151.00 to $224.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $191.28.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.

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