Daiwa Securities Group Inc. Boosts Holdings in Cloudflare, Inc. $NET

Key Points

• Daiwa Securities Group Inc. increased its Cloudflare stake by 42.6% in the fourth quarter, ending with 46,716 shares valued at about $9.21 million.
• Cloudflare reported better-than-expected Q1 results, with EPS of $0.25 and revenue of $639.76 million, while revenue rose 33.5% year over year.
• Wall Street remains generally positive on the stock: analysts rate Cloudflare as a Moderate Buy, with an average price target of $239.08.

Daiwa Securities Group Inc. raised its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 42.6% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 46,716 shares of the company's stock after buying an additional 13,964 shares during the quarter. Daiwa Securities Group Inc.'s holdings in Cloudflare were worth $9,210,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Brown Brothers Harriman & Co. lifted its stake in shares of Cloudflare by 55.4% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after purchasing an additional 56 shares in the last quarter. Silver Oak Securities Incorporated lifted its stake in shares of Cloudflare by 5.5% in the 4th quarter. Silver Oak Securities Incorporated now owns 1,090 shares of the company's stock valued at $218,000 after purchasing an additional 57 shares in the last quarter. Certuity LLC lifted its stake in shares of Cloudflare by 1.8% in the 4th quarter. Certuity LLC now owns 3,156 shares of the company's stock valued at $622,000 after purchasing an additional 57 shares in the last quarter. Rothschild Investment LLC lifted its stake in shares of Cloudflare by 37.4% in the 3rd quarter. Rothschild Investment LLC now owns 224 shares of the company's stock valued at $48,000 after purchasing an additional 61 shares in the last quarter. Finally, Cigna Investments Inc. New lifted its stake in shares of Cloudflare by 2.0% in the 4th quarter. Cigna Investments Inc. New now owns 3,062 shares of the company's stock valued at $604,000 after purchasing an additional 61 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Performance

Cloudflare stock opened at $250.35 on Friday. The stock's 50 day moving average price is $213.32 and its 200 day moving average price is $200.38. The firm has a market capitalization of $88.49 billion, a PE ratio of -1,001.40 and a beta of 1.70. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $276.82.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The firm had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.Cloudflare's revenue for the quarter was up 33.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Insider Activity at Cloudflare

In other Cloudflare news, CAO Janel Riley sold 3,481 shares of Cloudflare stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $193.32, for a total transaction of $672,946.92. Following the sale, the chief accounting officer directly owned 49,163 shares in the company, valued at $9,504,191.16. The trade was a 6.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 25,641 shares of Cloudflare stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $211.83, for a total value of $5,431,533.03. Following the sale, the insider owned 47,425 shares in the company, valued at $10,046,037.75. This represents a 35.09% 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. Insiders sold 527,491 shares of company stock worth $111,729,711 over the last ninety days. Company insiders own 10.89% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Piper Sandler reaffirmed an "overweight" rating and issued a $250.00 price objective (up from $222.00) on shares of Cloudflare in a research note on Friday, May 8th. Barclays reaffirmed an "overweight" rating and issued a $250.00 price objective on shares of Cloudflare in a research note on Monday, June 1st. Citigroup assumed coverage on Cloudflare in a research note on Wednesday, April 15th. They issued a "buy" rating on the stock. Susquehanna lifted their price objective on Cloudflare from $190.00 to $200.00 and gave the company a "neutral" rating in a research note on Monday, May 11th. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $224.00 price objective on shares of Cloudflare in a research note on Wednesday, February 11th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $239.08.

Cloudflare Company Profile

Cloudflare, Inc is a global web infrastructure and security company that provides a suite of services designed to improve the performance, reliability and security of internet properties. Its core offerings include a content delivery network (CDN), distributed denial-of-service (DDoS) protection, managed DNS, and a web application firewall (WAF). Cloudflare also provides tools for bot management, SSL/TLS, load balancing and rate limiting to help organizations maintain uptime and protect web applications from attack.

In addition to traditional edge and security services, Cloudflare has expanded into edge computing and developer platforms.

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