Handelsbanken Fonder AB Decreases Position in Cloudflare, Inc. $NET

Key Points

• Handelsbanken Fonder AB cut its Cloudflare stake by 14.4% in the fourth quarter, selling 29,729 shares and leaving it with 177,130 shares valued at about $34.9 million.
• Cloudflare reported better-than-expected Q1 results, with EPS of $0.25 versus $0.23 expected and revenue of $639.76 million, up 33.5% year over year.
• Analysts remain broadly constructive on NET, with a Moderate Buy consensus and average price target of $236.68, while recent news has highlighted its AI push, including a collaboration with Anthropic.

Handelsbanken Fonder AB lessened its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 14.4% during the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 177,130 shares of the company's stock after selling 29,729 shares during the quarter. Handelsbanken Fonder AB owned approximately 0.05% of Cloudflare worth $34,921,000 at the end of the most recent quarter.

Several other institutional investors have also bought and sold shares of NET. Physician Wealth Advisors Inc. raised its stake in shares of Cloudflare by 693.3% in the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock valued at $26,000 after buying an additional 104 shares during the period. Wiser Advisor Group LLC bought a new position in shares of Cloudflare during the 3rd quarter worth $26,000. Westside Investment Management Inc. grew its stake in shares of Cloudflare by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock worth $28,000 after acquiring an additional 65 shares during the period. Wexford Capital LP purchased a new stake in Cloudflare in the 3rd quarter worth about $30,000. Finally, Cloud Capital Management LLC purchased a new stake in Cloudflare in the 3rd quarter worth about $31,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Insider Activity

In related news, Director John Graham-Cumming sold 2,520 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $221.58, for a total value of $558,381.60. Following the sale, the director directly owned 494,067 shares of the company's stock, valued at $109,475,365.86. This trade represents a 0.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark J. Hawkins sold 133 shares of Cloudflare stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $211.62, for a total transaction of $28,145.46. Following the sale, the director owned 10,189 shares of the company's stock, valued at approximately $2,156,196.18. The trade was a 1.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 653,060 shares of company stock worth $128,655,860. Company insiders own 10.89% of the company's stock.

Cloudflare Price Performance

Shares of NYSE:NET opened at $206.81 on Wednesday. The company has a 50 day moving average of $207.36 and a 200 day moving average of $199.61. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The stock has a market cap of $73.10 billion, a P/E ratio of -827.25 and a beta of 1.67. Cloudflare, Inc. has a 12 month low of $154.93 and a 12 month high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 company had revenue of $639.76 million for the quarter, compared to the consensus estimate of $620.83 million. During the same quarter last year, the business posted $0.16 earnings per share. The firm's revenue was up 33.5% compared to the same quarter last year. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, sell-side analysts forecast that Cloudflare, Inc. will post -0.08 EPS for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have commented on NET shares. Jefferies Financial Group assumed coverage on shares of Cloudflare in a report on Wednesday, April 15th. They set a "buy" rating on the stock. Wolfe Research reissued a "peer perform" rating on shares of Cloudflare in a research report on Monday, January 26th. Piper Sandler restated an "overweight" rating and set a $250.00 price target (up from $222.00) on shares of Cloudflare in a research note on Friday, May 8th. Susquehanna raised their price objective on shares of Cloudflare from $190.00 to $200.00 and gave the stock a "neutral" rating in a report on Monday, May 11th. Finally, Zacks Research upgraded shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $236.68.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare announced a collaboration with Anthropic to launch Cloudflare Environments for Claude Managed Agents, which could strengthen its positioning in AI infrastructure and developer tooling. Cloudflare Brings Secure, Scalable Sandboxes to Claude Managed Agents
• Positive Sentiment: Recent coverage highlighted Cloudflare’s AI-first pivot and workforce reduction as part of a strategy to improve efficiency while expanding AI products, which may be viewed as a margin and growth catalyst. Cloudflare Reshapes Business With AI Pivot And 20% Workforce Cut
• Positive Sentiment: Investor interest in AI-linked internet software names and a sectorwide lift after a strong Cisco report have also helped sentiment around NET. Why Cloudflare (NET) Stock Is Trading Up Today
• Neutral Sentiment: Analyst and media commentary continues to group Cloudflare with other AI software beneficiaries, but this is more sentiment-driven than a new fundamental update. Fastly's Compute Revenues Surge: Is AI Demand Powering Growth?
• Negative Sentiment: Chief accounting officer Janel Riley sold shares in two separate transactions, and CFO Thomas J. Seifert also sold 10,000 shares, which can create some short-term pressure even though all were under pre-arranged 10b5-1 plans.

About Cloudflare

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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