Fred Alger Management LLC Has $86.30 Million Holdings in Cloudflare, Inc. $NET

Key Points

• Fred Alger Management LLC reduced its stake in Cloudflare, Inc. by 18% during Q1, leaving it with 765,857 shares valued at approximately $86.30 million.
• Several institutional investors have increased their positions in Cloudflare, with notable increases including AMERICAN Century Companies Inc., which raised its stake by 34.5% to over 3 million shares.
• Wall Street analysts remain optimistic, with multiple firms lifting their price targets for Cloudflare to between $200 and $240, reflecting a consensus rating of "Moderate Buy."

Fred Alger Management LLC cut its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 18.0% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 765,857 shares of the company's stock after selling 168,429 shares during the period. Fred Alger Management LLC owned about 0.22% of Cloudflare worth $86,304,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. GAMMA Investing LLC increased its holdings in Cloudflare by 86.8% in the 1st quarter. GAMMA Investing LLC now owns 1,093 shares of the company's stock valued at $123,000 after buying an additional 508 shares during the period. Wealthedge Investment Advisors LLC boosted its position in shares of Cloudflare by 64.5% during the 1st quarter. Wealthedge Investment Advisors LLC now owns 12,132 shares of the company's stock valued at $1,367,000 after acquiring an additional 4,755 shares in the last quarter. American Century Companies Inc. increased its stake in Cloudflare by 34.5% in the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock valued at $342,287,000 after acquiring an additional 779,819 shares during the period. Crossmark Global Holdings Inc. raised its position in Cloudflare by 9.6% in the first quarter. Crossmark Global Holdings Inc. now owns 2,635 shares of the company's stock worth $297,000 after purchasing an additional 230 shares in the last quarter. Finally, Amalgamated Bank raised its position in Cloudflare by 7.0% in the first quarter. Amalgamated Bank now owns 21,402 shares of the company's stock worth $2,412,000 after purchasing an additional 1,400 shares in the last quarter. 82.68% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on NET shares. Needham & Company LLC lifted their price objective on Cloudflare from $200.00 to $240.00 and gave the company a "buy" rating in a report on Friday, August 1st. Scotiabank boosted their price target on Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a research note on Friday, August 1st. Royal Bank Of Canada upped their price target on Cloudflare from $210.00 to $228.00 and gave the company an "outperform" rating in a research report on Friday, August 1st. Mizuho lifted their price objective on Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Finally, Stifel Nicolaus boosted their target price on shares of Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a research note on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $191.28.

Insiders Place Their Bets

In related news, CFO Thomas J. Seifert sold 59,130 shares of the business's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $200.30, for a total value of $11,843,739.00. Following the completion of the transaction, the chief financial officer directly owned 241,550 shares in the company, valued at approximately $48,382,465. The trade was a 19.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $171.25, for a total value of $8,970,760.00. Following the sale, the chief executive officer directly owned 381,213 shares of the company's stock, valued at approximately $65,282,726.25. The trade was a 12.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 687,029 shares of company stock worth $130,970,115. Company insiders own 10.89% of the company's stock.

Cloudflare Price Performance

Shares of NET stock opened at $214.44 on Monday. Cloudflare, Inc. has a 1 year low of $74.88 and a 1 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. The firm's 50 day moving average is $198.18 and its 200-day moving average is $159.59. The firm has a market capitalization of $74.73 billion, a price-to-earnings ratio of -630.71 and a beta of 1.95.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.18 by $0.03. The business 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%.During the same quarter last year, the business posted $0.20 EPS. The firm's revenue was up 27.8% compared to the same quarter last year. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Sell-side analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

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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