Engineers Gate Manager LP Sells 73,310 Shares of Cloudflare, Inc. $NET

Key Points

• Engineers Gate Manager LP cut its Cloudflare position by 85.9% in the second quarter, selling 73,310 shares and retaining 12,015 shares valued at approximately $2.95 million.
• Institutional ownership remains substantial at 82.68%, with several major investors—including California State Teachers Retirement System, Jennison Associates, and Swedbank—significantly increasing their holdings.
• Cloudflare reported quarterly revenue of $696.06 million, up 35.9% year over year, and earnings of $0.29 per share, beating estimates. Analysts maintain a “Moderate Buy” consensus with an average price target of $320.19, although insider selling and the company’s negative net margin remain notable concerns.

Engineers Gate Manager LP decreased its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 85.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 12,015 shares of the company's stock after selling 73,310 shares during the quarter. Engineers Gate Manager LP's holdings in Cloudflare were worth $2,947,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. California State Teachers Retirement System lifted its position in shares of Cloudflare by 24,491.6% in the 2nd quarter. California State Teachers Retirement System now owns 114,562,194 shares of the company's stock worth $28,099,815,000 after purchasing an additional 114,096,335 shares during the period. Norges Bank bought a new stake in shares of Cloudflare during the 4th quarter valued at about $718,316,000. Jennison Associates LLC increased its position in shares of Cloudflare by 135.8% during the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock valued at $906,758,000 after buying an additional 2,530,872 shares during the period. Corient Private Wealth LLC increased its position in shares of Cloudflare by 4,042.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock valued at $275,887,000 after buying an additional 1,365,598 shares during the period. Finally, Swedbank AB increased its position in shares of Cloudflare by 697.5% during the first quarter. Swedbank AB now owns 927,606 shares of the company's stock valued at $191,402,000 after buying an additional 811,297 shares during the period. 82.68% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Citigroup restated a "market outperform" rating on shares of Cloudflare in a report on Monday, August 31st. Wall Street Zen downgraded Cloudflare from a "buy" rating to a "hold" rating in a report on Sunday, September 6th. The Goldman Sachs Group reissued a "buy" rating and issued a $389.00 target price on shares of Cloudflare in a research report on Friday, August 7th. Weiss Ratings restated a "sell (d-)" rating on shares of Cloudflare in a research note on Friday, July 17th. Finally, Needham & Company LLC raised their target price on Cloudflare from $280.00 to $380.00 and gave the company a "buy" rating in a research note on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $320.19.

Cloudflare Trading Down 0.1%

NYSE:NET opened at $306.22 on Monday. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $332.22. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The company's 50-day simple moving average is $285.92 and its 200 day simple moving average is $239.49. The firm has a market capitalization of $108.24 billion, a P/E ratio of -527.97, a PEG ratio of 250.57 and a beta of 1.66.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The business had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same quarter last year, the firm earned $0.21 earnings per share. The business's revenue for the quarter was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Alissa Michelle Starzak sold 2,538 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $304.68, for a total value of $773,277.84. Following the sale, the insider directly owned 112,082 shares of the company's stock, valued at approximately $34,149,143.76. This represents a 2.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Janel Riley sold 3,481 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $305.26, for a total value of $1,062,610.06. Following the transaction, the chief accounting officer owned 41,547 shares of the company's stock, valued at $12,682,637.22. The trade was a 7.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 703,724 shares of company stock valued at $186,167,272. Company insiders own 10.66% of the company's stock.

About Cloudflare

Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.

The company's offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.

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