Cornerstone Enterprises LLC Buys Shares of 4,040 Cloudflare, Inc. $NET

Key Points

• Cornerstone Enterprises LLC has acquired a new stake in Cloudflare, Inc. by purchasing 4,040 shares, valued at approximately $791,000, making Cloudflare the 22nd largest position in its portfolio.
• Several analysts have raised their price targets for Cloudflare, with UBS Group setting a new target at $200 and Piper Sandler raising it to $224, while Mizuho increased theirs to $240.
• Insider trading activity revealed that CFO Thomas J. Seifert sold 34,270 shares for over $6.8 million, resulting in a 12.42% decrease in their ownership of the stock.

Cornerstone Enterprises LLC bought a new stake in Cloudflare, Inc. (NYSE:NET - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 4,040 shares of the company's stock, valued at approximately $791,000. Cloudflare accounts for 0.4% of Cornerstone Enterprises LLC's investment portfolio, making the stock its 22nd biggest position.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Mather Group LLC. raised its position in Cloudflare by 1,188.2% in the first quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after purchasing an additional 202 shares during the period. NBC Securities Inc. purchased a new stake in Cloudflare in the first quarter valued at $27,000. GPS Wealth Strategies Group LLC raised its position in Cloudflare by 213.4% in the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock valued at $29,000 after purchasing an additional 175 shares during the period. Hilltop National Bank purchased a new stake in shares of Cloudflare in the 2nd quarter valued at $36,000. Finally, Ameritas Advisory Services LLC purchased a new stake in shares of Cloudflare in the 2nd quarter valued at $39,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Analyst Upgrades and Downgrades

NET has been the topic of several research analyst reports. UBS Group boosted their price objective on Cloudflare from $145.00 to $200.00 and gave the company a "neutral" rating in a report on Thursday, July 24th. Piper Sandler boosted their price objective on Cloudflare from $151.00 to $224.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Mizuho boosted their price objective on Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Stifel Nicolaus boosted their price objective on Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a report on Friday, August 1st. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a report on Wednesday. One investment 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 given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $196.54.

Insiders Place Their Bets

In other news, CFO Thomas J. Seifert sold 34,270 shares of the company's stock in a transaction dated Monday, July 21st. The stock was sold at an average price of $200.17, for a total transaction of $6,859,825.90. Following the completion of the transaction, the chief financial officer directly owned 241,550 shares of the company's stock, valued at approximately $48,351,063.50. This represents a 12.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Michelle Zatlyn sold 35,100 shares of the company's stock in a transaction dated Thursday, August 21st. The stock was sold at an average price of $191.71, for a total value of $6,729,021.00. Following the transaction, the insider directly owned 14,575 shares of the company's stock, valued at approximately $2,794,173.25. This represents a 70.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 622,252 shares of company stock valued at $126,288,029. 10.89% of the stock is owned by insiders.

Cloudflare Trading Up 1.2%

NET opened at $220.02 on Thursday. Cloudflare, Inc. has a 12 month low of $81.63 and a 12 month high of $230.10. The stock has a market capitalization of $76.67 billion, a price-to-earnings ratio of -647.12 and a beta of 1.99. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14. The business has a fifty day moving average price of $211.46 and a 200 day moving average price of $173.54.

Cloudflare (NYSE:NET - Get Free Report) last released its 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. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The firm had revenue of $512.32 million during the quarter, compared to analysts' expectations of $501.58 million. During the same period in the previous year, the firm posted $0.20 EPS. Cloudflare's revenue for the quarter was up 27.8% on a year-over-year basis. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Sell-side analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Cloudflare 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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