Employees Retirement System of Texas Has $6.94 Million Stock Holdings in Cloudflare, Inc. $NET

Key Points

• Employees Retirement System of Texas cut its Cloudflare stake by 18% in the fourth quarter, selling 7,739 shares and leaving it with 35,223 shares valued at about $6.94 million.
• Institutional interest in Cloudflare remains high, with investors such as Jennison Associates and Vanguard increasing positions; overall, institutional holders own 82.68% of the stock.
• Cloudflare reported stronger-than-expected quarterly results, with EPS of $0.25 and revenue of $639.76 million, and analysts currently rate the stock a Moderate Buy with an average price target of $236.68.

Employees Retirement System of Texas lowered its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 18.0% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 35,223 shares of the company's stock after selling 7,739 shares during the quarter. Employees Retirement System of Texas' holdings in Cloudflare were worth $6,944,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Jennison Associates LLC raised its stake in Cloudflare by 802.6% in the fourth quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock valued at $367,411,000 after purchasing an additional 1,657,144 shares in the last quarter. Groupama Asset Managment grew its position in Cloudflare by 82.6% during the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock valued at $450,639,000 after acquiring an additional 950,000 shares during the last quarter. Vanguard Group Inc. grew its position in Cloudflare by 2.6% during the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock valued at $6,934,958,000 after acquiring an additional 821,684 shares during the last quarter. Massachusetts Financial Services Co. MA grew its position in Cloudflare by 25.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after acquiring an additional 336,768 shares during the last quarter. Finally, Federated Hermes Inc. grew its position in Cloudflare by 63.5% during the third quarter. Federated Hermes Inc. now owns 862,009 shares of the company's stock valued at $184,979,000 after acquiring an additional 334,875 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on NET shares. Zacks Research upgraded shares of Cloudflare from a "strong sell" rating to a "hold" rating in a report on Friday, March 13th. UBS Group restated a "neutral" rating and issued a $220.00 target price on shares of Cloudflare in a report on Wednesday, February 11th. Guggenheim raised their target price on shares of Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a report on Wednesday, February 11th. BTIG Research restated a "buy" rating and issued a $243.00 target price on shares of Cloudflare in a report on Friday, May 8th. Finally, The Goldman Sachs Group cut shares of Cloudflare from a "buy" rating to a "sell" rating in a report on Wednesday, April 15th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $236.68.

Insider Buying and Selling at Cloudflare

In related news, CAO Janel Riley sold 3,481 shares of the stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $193.32, for a total value of $672,946.92. Following the completion of the sale, the chief accounting officer directly owned 49,163 shares of the company's stock, valued at approximately $9,504,191.16. This represents a 6.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $221.58, for a total transaction of $558,381.60. Following the completion of the sale, the director directly owned 494,067 shares of the company's stock, valued at $109,475,365.86. This represents a 0.51% 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 sold 577,525 shares of company stock worth $118,153,351. 10.89% of the stock is owned by corporate insiders.

Cloudflare Price Performance

NET opened at $218.05 on Wednesday. The stock has a 50-day moving average price of $207.88 and a 200-day moving average price of $198.82. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The firm has a market cap of $77.07 billion, a PE ratio of -872.20 and a beta of 1.67. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $260.00.

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

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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