Insight Holdings Group LLC Makes New Investment in Cloudflare, Inc. $NET

Key Points

• Insight Holdings Group LLC opened a new position in Cloudflare during the first quarter, buying 32,800 shares worth about $6.77 million. The stake represented 0.5% of its portfolio and was its 20th-largest holding.
• Other institutional investors also increased exposure to NET, and 82.68% of Cloudflare’s stock is owned by institutions. Meanwhile, insiders have been selling shares, including director Mark J. Hawkins and insider Michelle Zatlyn.
• Cloudflare reported strong quarterly results, with revenue of $639.75 million, up 33.5% year over year, and EPS of $0.25, beating estimates. Analysts currently rate the stock a Moderate Buy with a consensus price target of $261.19.

Insight Holdings Group LLC purchased a new position in Cloudflare, Inc. (NYSE:NET - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 32,800 shares of the company's stock, valued at approximately $6,768,000. Cloudflare comprises 0.5% of Insight Holdings Group LLC's investment portfolio, making the stock its 20th largest position.

Several other large investors also recently added to or reduced their stakes in NET. Empowered Funds LLC increased its position in Cloudflare by 34.2% during the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock valued at $750,000 after acquiring an additional 1,696 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of Cloudflare in the second quarter worth about $424,000. Cerity Partners LLC grew its stake in Cloudflare by 30.1% in the 2nd quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock worth $5,391,000 after acquiring an additional 6,363 shares in the last quarter. Sei Investments Co. grew its stake in Cloudflare by 40.1% in the second quarter. Sei Investments Co. now owns 329,036 shares of the company's stock worth $64,432,000 after purchasing an additional 94,112 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its position in shares of Cloudflare by 14.6% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock worth $3,224,000 after buying an additional 2,093 shares in the last quarter. 82.68% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, Director Mark J. Hawkins sold 133 shares of Cloudflare stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $249.00, for a total transaction of $33,117.00. Following the transaction, the director owned 10,765 shares in the company, valued at $2,680,485. The trade was a 1.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 25,641 shares of Cloudflare stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $219.11, for a total transaction of $5,618,199.51. Following the transaction, the insider directly owned 47,425 shares in the company, valued at $10,391,291.75. This trade represents a 35.09% 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 have sold 564,903 shares of company stock worth $127,356,194 in the last 90 days. Corporate insiders own 10.66% of the company's stock.

Cloudflare Trading Up 0.2%

Shares of Cloudflare stock opened at $262.72 on Friday. 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 price is $243.73 and its 200 day moving average price is $212.38. The firm has a market capitalization of $92.86 billion, a PE ratio of -1,050.87, a P/E/G ratio of 267.19 and a beta of 1.67. Cloudflare, Inc. has a twelve month low of $158.83 and a twelve month high of $291.00.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 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 firm had revenue of $639.75 million during the quarter, compared to analysts' expectations of $620.83 million. During the same period in the previous year, the business earned $0.16 earnings per share. The firm'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. On average, sell-side analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

NET has been the topic of several research reports. Benchmark lowered shares of Cloudflare to an "underperform" rating in a report on Tuesday, July 7th. Scotiabank upgraded shares of Cloudflare from a "sector perform" rating to a "sector outperform" rating and lifted their target price for the stock from $225.00 to $300.00 in a research note on Tuesday, July 7th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $290.00 price target on shares of Cloudflare in a research report on Thursday, July 16th. Guggenheim reissued a "sell" rating and set a $140.00 target price on shares of Cloudflare in a report on Wednesday, June 10th. Finally, Needham & Company LLC lifted their price target on Cloudflare from $250.00 to $280.00 and gave the company a "buy" rating in a research report on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, six have issued a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $261.19.

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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