Hartline Investment Corp Has $23.88 Million Stock Holdings in Cloudflare, Inc. $NET

Key Points

• Hartline Investment Corp cut its Cloudflare stake by 19.9% in the fourth quarter, but still held 121,122 shares valued at about $23.88 million, making NET its 12th-largest holding.
• Cloudflare continues to attract heavy institutional interest, with 82.68% of shares owned by institutions and hedge funds, even as several insiders recently sold stock under pre-arranged trading plans.
• The company posted a solid quarter, beating both EPS and revenue estimates and raising optimism around its AI-related growth, including a collaboration with Anthropic on Cloudflare Environments for Claude Managed Agents.

Hartline Investment Corp trimmed its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 19.9% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 121,122 shares of the company's stock after selling 30,042 shares during the quarter. Cloudflare makes up 2.6% of Hartline Investment Corp's holdings, making the stock its 12th biggest holding. Hartline Investment Corp's holdings in Cloudflare were worth $23,879,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Jennison Associates LLC lifted its stake in shares of Cloudflare by 802.6% in the fourth quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock worth $367,411,000 after acquiring an additional 1,657,144 shares during the period. Groupama Asset Managment lifted its stake in shares of Cloudflare by 82.6% in the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after acquiring an additional 950,000 shares during the period. Vanguard Group Inc. lifted its stake in shares of Cloudflare by 2.6% in the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after acquiring an additional 821,684 shares during the period. Massachusetts Financial Services Co. MA lifted its stake in shares of Cloudflare by 25.8% in the fourth 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 period. Finally, Federated Hermes Inc. lifted its stake in shares of Cloudflare by 63.5% in the third quarter. Federated Hermes Inc. now owns 862,009 shares of the company's stock worth $184,979,000 after acquiring an additional 334,875 shares during the period. 82.68% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts recently commented on NET shares. TD Cowen reaffirmed a "buy" rating on shares of Cloudflare in a research note on Tuesday, January 27th. The Goldman Sachs Group lowered Cloudflare from a "buy" rating to a "sell" rating in a research note on Wednesday, April 15th. Guggenheim lifted their price objective on Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a research note on Wednesday, February 11th. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Cloudflare in a research note on Friday. Finally, Robert W. Baird set a $260.00 price objective on Cloudflare and gave the stock an "outperform" rating in a research note on Wednesday, February 11th. Eighteen 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. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $236.68.

Insiders Place Their Bets

In other Cloudflare news, CAO Janel Riley sold 3,481 shares of Cloudflare stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $193.32, for a total value of $672,946.92. Following the completion of the sale, the chief accounting officer directly owned 49,163 shares in the company, valued at approximately $9,504,191.16. The trade was a 6.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 15,000 shares of Cloudflare stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $238.12, for a total value of $3,571,800.00. Following the completion of the sale, the director owned 908,073 shares of the company's stock, valued at approximately $216,230,342.76. The trade was a 1.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 655,550 shares of company stock valued at $131,181,924 in the last 90 days. Company insiders own 10.89% of the company's stock.

Key Stories Impacting Cloudflare

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, a move that strengthens its position in AI infrastructure and could open a new growth avenue for its platform. Cloudflare (NET) Stock Trades Up, Here Is Why
• Positive Sentiment: Coverage highlighting Cloudflare as a beneficiary of the AI and big-data buildout is supporting investor optimism and reinforcing the company’s long-term growth narrative. Why Cloudflare Russell 1000 Momentum Is Rising?
• Neutral Sentiment: The latest earnings report was solid, with Cloudflare beating both EPS and revenue estimates, but investors are still balancing strong growth against ongoing losses and a premium valuation.
• Negative Sentiment: Recent insider sales by CEO Matthew Prince, CAO Janel Riley, and CFO Thomas J. Seifert may create some short-term caution, even though the trades were made under pre-arranged 10b5-1 plans and do not necessarily signal a change in outlook.

Cloudflare Trading Up 1.7%

Shares of NET stock opened at $216.24 on Friday. The company has a market cap of $76.43 billion, a P/E ratio of -864.96 and a beta of 1.67. The stock has a 50 day simple moving average of $207.69 and a two-hundred day simple moving average of $199.35. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. Cloudflare, Inc. has a fifty-two week low of $154.93 and a fifty-two week high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. The business had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm's revenue for the quarter was up 33.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Cloudflare 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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