CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT Acquires New Stake in Cloudflare, Inc. $NET

Key Points

• CUSHING ASSET MANAGEMENT LP acquired a new stake in Cloudflare, Inc., purchasing 15,000 shares valued at approximately $2.94 million during the second quarter.
• Analysts have raised their price targets for Cloudflare, with Piper Sandler increasing theirs from $151.00 to $224.00, contributing to a general consensus rating of "Moderate Buy".
• In insider transactions, Director Carl Ledbetter sold 15,000 shares at an average price of $195.73, resulting in a 1.44% decrease in his ownership stake.

CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT acquired a new position in Cloudflare, Inc. (NYSE:NET - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 15,000 shares of the company's stock, valued at approximately $2,937,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Vise Technologies Inc. purchased a new position in Cloudflare during the fourth quarter valued at $417,000. Toronto Dominion Bank grew its stake in Cloudflare by 7.0% during the fourth quarter. Toronto Dominion Bank now owns 39,763 shares of the company's stock valued at $4,282,000 after acquiring an additional 2,605 shares in the last quarter. Mackenzie Financial Corp grew its stake in Cloudflare by 2.5% during the fourth quarter. Mackenzie Financial Corp now owns 14,641 shares of the company's stock valued at $1,577,000 after acquiring an additional 357 shares in the last quarter. Putney Financial Group LLC purchased a new position in Cloudflare during the fourth quarter valued at $664,000. Finally, Challenger Wealth Management purchased a new position in Cloudflare during the fourth quarter valued at $248,000. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Stock Performance

NYSE:NET traded up $2.27 during trading hours on Monday, hitting $228.21. 2,635,320 shares of the company were exchanged, compared to its average volume of 2,190,832. The stock has a market capitalization of $79.52 billion, a price-to-earnings ratio of -671.19 and a beta of 1.95. Cloudflare, Inc. has a 52-week low of $77.80 and a 52-week high of $230.10. 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 company's 50 day moving average price is $205.56 and its 200-day moving average price is $165.78.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.18 by $0.03. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The business 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 business posted $0.20 EPS. The business's quarterly revenue was up 27.8% compared to the same quarter last year. 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, research analysts forecast that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Transactions at Cloudflare

In related news, CFO Thomas J. Seifert sold 10,000 shares of the company's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $227.64, for a total value of $2,276,400.00. Following the completion of the sale, the chief financial officer owned 189,517 shares of the company's stock, valued at approximately $43,141,649.88. This represents a 5.01% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Carl Ledbetter sold 15,000 shares of the stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $223.91, for a total transaction of $3,358,650.00. Following the transaction, the director directly owned 1,013,073 shares of the company's stock, valued at approximately $226,837,175.43. This trade represents a 1.46% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 690,738 shares of company stock valued at $137,603,592 in the last three months. 10.89% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

Several equities analysts recently weighed in on NET shares. Stifel Nicolaus raised their target price on shares of Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Citigroup lifted their price objective on shares of Cloudflare from $240.00 to $255.00 and gave the stock a "buy" rating in a research note on Monday, August 18th. DZ Bank reissued a "sell" rating and issued a $170.00 price objective on shares of Cloudflare in a research note on Tuesday, July 22nd. Guggenheim lifted their price objective on shares of Cloudflare from $70.00 to $111.00 and gave the stock a "sell" rating in a research note on Friday, August 1st. Finally, Royal Bank Of Canada lifted their price objective on shares of Cloudflare from $210.00 to $228.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, Cloudflare has an average rating of "Moderate Buy" and a consensus price target of $191.28.

About Cloudflare

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.