Glynn Capital Management LLC Sells 18,581 Shares of Cloudflare, Inc. $NET

Key Points

• Glynn Capital Management cut its Cloudflare stake by 26.1% in the fourth quarter, selling 18,581 shares and leaving it with 52,682 shares worth about $10.4 million.
• Cloudflare reported strong quarterly results, posting EPS of $0.25 versus $0.23 expected and revenue of $639.76 million, up 33.5% year over year.
• Analysts remain broadly positive on NET, with a Moderate Buy consensus and an average price target of $236.68, even as several insiders have recently sold shares.

Glynn Capital Management LLC reduced its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 26.1% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 52,682 shares of the company's stock after selling 18,581 shares during the quarter. Cloudflare comprises approximately 3.6% of Glynn Capital Management LLC's holdings, making the stock its 16th largest position. Glynn Capital Management LLC's holdings in Cloudflare were worth $10,386,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Allianz Asset Management GmbH raised its holdings in Cloudflare by 322.4% in the 3rd quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock worth $13,987,000 after acquiring an additional 49,749 shares during the last quarter. National Pension Service raised its holdings in Cloudflare by 1.0% in the 3rd quarter. National Pension Service now owns 618,662 shares of the company's stock worth $132,759,000 after acquiring an additional 5,939 shares during the last quarter. Trek Financial LLC purchased a new position in Cloudflare in the 4th quarter worth approximately $1,793,000. Massachusetts Financial Services Co. MA raised its holdings in Cloudflare by 25.8% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock worth $323,259,000 after acquiring an additional 336,768 shares during the last quarter. Finally, Bank Julius Baer & Co. Ltd Zurich raised its holdings in Cloudflare by 275.6% in the 4th quarter. Bank Julius Baer & Co. Ltd Zurich now owns 37,072 shares of the company's stock worth $7,348,000 after acquiring an additional 27,202 shares during the last quarter. 82.68% of the stock is owned by institutional investors.

Cloudflare Trading Up 9.0%

Shares of NYSE:NET opened at $227.98 on Friday. The stock has a market capitalization of $80.58 billion, a price-to-earnings ratio of -911.92 and a beta of 1.67. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The stock's 50-day simple moving average is $208.24 and its two-hundred day simple moving average is $198.67. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $620.83 million. During the same period last year, the firm posted $0.16 earnings per share. The business's revenue for the quarter 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.

Analyst Ratings Changes

A number of equities analysts recently weighed in on NET shares. BTIG Research restated a "buy" rating and issued a $243.00 price objective on shares of Cloudflare in a report on Friday, May 8th. Royal Bank Of Canada restated an "outperform" rating on shares of Cloudflare in a report on Friday, May 22nd. Barclays boosted their price objective on shares of Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a report on Wednesday, February 11th. Needham & Company LLC decreased their price objective on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating for the company in a report on Wednesday, February 11th. Finally, New Street Research set a $140.00 price objective on shares of Cloudflare in a report on Wednesday, February 11th. Eighteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $236.68.

Insider Activity at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $209.08, for a total value of $10,952,446.72. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the transaction, the insider owned 47,425 shares in the company, valued at $10,148,001.50. This trade represents a 42.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 585,862 shares of company stock worth $121,988,011 in the last quarter. Company insiders own 10.89% of the company's stock.

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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