Hsbc Holdings PLC Has $40.89 Million Position in Cloudflare, Inc. $NET

Key Points

• HSBC Holdings PLC cut its Cloudflare stake by 53.8% in the fourth quarter, selling 240,833 shares and leaving it with 206,915 shares valued at about $40.89 million.
• Cloudflare’s latest earnings beat estimates, with quarterly EPS of $0.25 versus the expected $0.23 and revenue of $639.75 million, up 33.5% year over year. The company also issued FY 2026 guidance calling for EPS of 1.19–1.20.
• Analysts remain broadly positive on the stock, with a consensus rating of Moderate Buy and an average price target of $241.35. At the same time, insiders have been selling shares, which may temper sentiment despite Cloudflare’s AI-related growth initiatives.

Hsbc Holdings PLC cut its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 53.8% in the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 206,915 shares of the company's stock after selling 240,833 shares during the quarter. Hsbc Holdings PLC owned approximately 0.06% of Cloudflare worth $40,888,000 as of its most recent filing with the SEC.

Other large investors have also made changes to their positions in the company. HM Payson & Co. bought a new position in Cloudflare during the 4th quarter valued at about $25,000. Wiser Advisor Group LLC bought a new stake in Cloudflare during the third quarter worth about $26,000. Wexford Capital LP bought a new stake in Cloudflare during the third quarter worth about $30,000. Ameriflex Group Inc. increased its holdings in shares of Cloudflare by 105.6% during the third quarter. Ameriflex Group Inc. now owns 148 shares of the company's stock worth $32,000 after buying an additional 76 shares in the last quarter. Finally, Brown Brothers Harriman & Co. increased its holdings in shares of Cloudflare by 55.4% during the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock worth $34,000 after buying an additional 56 shares in the last quarter. Institutional investors own 82.68% of the company's stock.

Analyst Ratings Changes

Several research analysts have recently commented on NET shares. BTIG Research boosted their target price on Cloudflare from $243.00 to $269.00 and gave the stock a "buy" rating in a report on Wednesday, June 10th. KeyCorp reaffirmed an "overweight" rating on shares of Cloudflare in a report on Wednesday, June 10th. Stifel Nicolaus set a $260.00 price objective on Cloudflare in a research report on Friday, May 8th. New Street Research reissued a "market outperform" rating on shares of Cloudflare in a research note on Monday, June 15th. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $230.00 target price (up from $224.00) on shares of Cloudflare in a report on Wednesday, June 10th. Twenty-one research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $241.35.

Cloudflare Price Performance

Shares of NET stock opened at $224.64 on Wednesday. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $276.82. 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 firm's 50 day moving average is $219.38 and its 200-day moving average is $203.07. The firm has a market capitalization of $79.40 billion, a price-to-earnings ratio of -898.56, a PEG ratio of 389.12 and a beta of 1.70.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business had revenue of $639.75 million during the quarter, compared to analyst estimates of $620.83 million. During the same quarter last year, the business posted $0.16 earnings per share. Cloudflare's revenue for the quarter 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. Sell-side analysts forecast that Cloudflare, Inc. will post 0.01 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Katrin Suder sold 293 shares of the business's stock in a transaction on Monday, June 8th. The stock was sold at an average price of $252.92, for a total transaction of $74,105.56. Following the completion of the sale, the director owned 37,430 shares in the company, valued at $9,466,795.60. The trade was a 0.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John Graham-Cumming sold 2,520 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $235.95, for a total value of $594,594.00. Following the transaction, the director directly owned 494,067 shares in the company, valued at $116,575,108.65. This trade represents a 0.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 461,477 shares of company stock worth $98,173,864. 10.66% of the stock is currently owned by company insiders.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare announced a strategic partnership with beehiiv to embed its Crawl Control technology, giving independent publishers more visibility and control over how AI systems crawl their content. The move reinforces Cloudflare’s position in the fast-growing AI infrastructure and content-protection market. Article: Cloudflare and beehiiv Introduce AI Crawl Controls to Help Independent Publishers Navigate the AI Era
• Positive Sentiment: Cloudflare also unveiled a broader privacy-first internet initiative with major browsers including Firefox, Chrome, and Edge to help distinguish legitimate traffic from malicious bots. That could strengthen Cloudflare’s relevance as traffic shifts toward AI agents and bot management becomes more important for websites. Article: Cloudflare Collaborates With Leading Browsers to Develop a Privacy-First Protocol For the Global Internet
• Neutral Sentiment: Analysts continued to view Cloudflare favorably overall, with brokerage consensus reported as “Moderate Buy.” This supports the stock, but it is not a new catalyst on its own. Article: Cloudflare, Inc. Receives Consensus Rating of Moderate Buy from Brokerages
• Neutral Sentiment: Several notes also pointed to Cloudflare pulling back toward its 50-day moving average, which some traders see as setting up a short-term bounce. This is more of a technical setup than a fundamental driver. Article: Cloudflare Stock Due for a Short-Term Bounce
• Negative Sentiment: Some commentary flagged Cloudflare’s rich valuation and insider selling, suggesting investors may be cautious despite the company’s AI growth story. That could limit upside if expectations become too stretched. Article: These AI Stocks Have Insider Selling, But Buyers Still Have a Reason to Stay (NET)

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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