Federated Hermes Inc. Acquires New Position in Cloudflare, Inc. (NYSE:NET)

Key Points

• Federated Hermes Inc. has acquired a new position in Cloudflare, Inc., purchasing 190,455 shares valued at approximately $21.46 million, representing 0.06% ownership in the company.
• Insider Michelle Zatlyn significantly reduced her holding by selling 25,641 shares for about $4.89 million, which marked an 80.05% decrease in her position.
• Cloudflare reported a 27.8% increase in quarterly revenue year-over-year, with earnings per share (EPS) of $0.21, exceeding the analyst consensus estimate by $0.03.

Federated Hermes Inc. purchased a new position in Cloudflare, Inc. (NYSE:NET - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 190,455 shares of the company's stock, valued at approximately $21,462,000. Federated Hermes Inc. owned 0.06% of Cloudflare at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. CreativeOne Wealth LLC increased its stake in Cloudflare by 0.8% in the 4th quarter. CreativeOne Wealth LLC now owns 6,982 shares of the company's stock worth $752,000 after acquiring an additional 58 shares during the last quarter. Spire Wealth Management increased its position in Cloudflare by 11.0% in the first quarter. Spire Wealth Management now owns 962 shares of the company's stock worth $108,000 after purchasing an additional 95 shares during the last quarter. Yousif Capital Management LLC increased its position in Cloudflare by 2.5% in the first quarter. Yousif Capital Management LLC now owns 3,969 shares of the company's stock worth $447,000 after purchasing an additional 98 shares during the last quarter. Ellevest Inc. raised its stake in Cloudflare by 2.3% during the fourth quarter. Ellevest Inc. now owns 4,538 shares of the company's stock valued at $489,000 after purchasing an additional 102 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in Cloudflare by 19.3% during the first quarter. Versant Capital Management Inc now owns 655 shares of the company's stock valued at $74,000 after purchasing an additional 106 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, 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 transaction, the insider owned 6,390 shares of the company's stock, valued at $1,218,445.20. The trade was a 80.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Carl Ledbetter sold 15,000 shares of the stock in a transaction on Monday, July 28th. The shares were sold at an average price of $199.85, for a total value 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 represents a 1.42% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 688,062 shares of company stock worth $121,498,887 over the last ninety days. 10.89% of the stock is currently owned by corporate insiders.

Cloudflare Stock Performance

NET stock opened at $207.57 on Friday. The company has a debt-to-equity ratio of 0.90, a current ratio of 3.20 and a quick ratio of 3.20. Cloudflare, Inc. has a 1-year low of $69.26 and a 1-year high of $210.98. The business has a 50-day moving average price of $182.66 and a 200 day moving average price of $147.77. The company has a market capitalization of $71.95 billion, a P/E ratio of -902.48 and a beta of 1.85.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.18 by $0.03. The business had revenue of $512.32 million during the quarter, compared to analyst estimates of $501.58 million. Cloudflare had a negative net margin of 4.62% and a negative return on equity of 6.31%. The company's quarterly revenue was up 27.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.20 EPS. As a group, equities research analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on NET shares. UBS Group upped their target price on shares of Cloudflare from $145.00 to $200.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Citigroup restated an "outperform" rating on shares of Cloudflare in a research report on Monday. Mizuho raised their price objective on Cloudflare from $155.00 to $220.00 and gave the company an "outperform" rating in a research note on Wednesday, July 16th. Capital One Financial upgraded Cloudflare from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 8th. Finally, KeyCorp began coverage on shares of Cloudflare in a research report on Friday, June 6th. They set an "overweight" rating and a $210.00 price objective on the stock. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Cloudflare has an average rating of "Moderate Buy" and an average price target of $161.72.

Cloudflare Company 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.

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