Entropy Technologies LP Makes New $2.94 Million Investment in Cloudflare, Inc. (NYSE:NET)

Key Points

• Entropy Technologies LP has acquired a new stake in Cloudflare, Inc., purchasing 26,044 shares valued at approximately $2.93 million in the first quarter of 2023.
• Insider selling activity has occurred, with Douglas James Kramer and Carl Ledbetter selling a combined total of 18,000 shares recently, reflecting a decrease in their ownership percentages.
• Despite a negative net margin of 6.22%, Cloudflare reported a strong earnings per share of $0.21 for the last quarter, exceeding analysts' expectations.

Entropy Technologies LP bought a new position in Cloudflare, Inc. (NYSE:NET - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 26,044 shares of the company's stock, valued at approximately $2,935,000.

A number of other institutional investors have also recently modified their holdings of NET. Mather Group LLC. boosted its position in shares of Cloudflare by 1,188.2% during the first quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after buying an additional 202 shares during the last quarter. NBC Securities Inc. purchased a new stake in shares of Cloudflare during the first quarter valued at $27,000. GPS Wealth Strategies Group LLC boosted its position in shares of Cloudflare by 213.4% during the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock valued at $29,000 after buying an additional 175 shares during the last quarter. MassMutual Private Wealth & Trust FSB boosted its position in shares of Cloudflare by 115.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock valued at $30,000 after buying an additional 142 shares during the last quarter. Finally, Gordian Capital Singapore Pte Ltd purchased a new stake in shares of Cloudflare during the fourth quarter valued at $43,000. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Price Performance

NET traded down $0.89 on Wednesday, hitting $201.44. 176,028 shares of the company's stock traded hands, compared to its average volume of 3,658,038. The company's 50 day simple moving average is $190.37 and its 200-day simple moving average is $153.51. The firm has a market cap of $70.20 billion, a price-to-earnings ratio of -590.97 and a beta of 1.84. Cloudflare, Inc. has a one year low of $74.88 and a one year high of $219.00. The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.18 by $0.03. The company had revenue of $512.32 million for the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%. The firm's quarterly revenue was up 27.8% on a year-over-year basis. During the same quarter last year, the company earned $0.20 EPS. As a group, research analysts anticipate that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Activity at Cloudflare

In related news, Director Carl Ledbetter sold 15,000 shares of Cloudflare stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $199.85, for a total transaction of $2,997,750.00. Following the sale, the director owned 1,043,073 shares of the company's stock, valued at approximately $208,458,139.05. This trade represents a 1.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Michelle Zatlyn sold 25,641 shares of Cloudflare stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $190.68, for a total value of $4,889,225.88. Following the sale, the insider directly owned 6,390 shares in the company, valued at $1,218,445.20. This trade represents a 80.05% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 638,678 shares of company stock worth $114,296,189 in the last three months. Corporate insiders own 10.89% of the company's stock.

Analyst Upgrades and Downgrades

NET has been the topic of several recent analyst reports. Stifel Nicolaus increased their price objective on Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Needham & Company LLC increased their price objective on Cloudflare from $200.00 to $240.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Citigroup reaffirmed an "outperform" rating on shares of Cloudflare in a research report on Monday, July 28th. Bank of America increased their target price on Cloudflare from $235.00 to $240.00 and gave the company a "buy" rating in a report on Friday, August 1st. Finally, KeyCorp boosted their price target on Cloudflare from $210.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Three equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Cloudflare currently has an average rating of "Moderate Buy" and a consensus target price of $186.88.

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.