Jump Financial LLC Invests $8.12 Million in Cloudflare, Inc. $NET

Key Points

• Jump Financial LLC has invested $8.12 million in Cloudflare, purchasing 72,057 shares during the first quarter of the year.
• Several other institutional investors have also increased their stakes in Cloudflare, with Vanguard Group and American Century Companies significantly boosting their holdings.
• Cloudflare recently reported a 27.8% year-over-year revenue increase and outperformed earnings expectations, demonstrating continued growth in its business operations.

Jump Financial LLC bought a new position in Cloudflare, Inc. (NYSE:NET - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 72,057 shares of the company's stock, valued at approximately $8,120,000.

A number of other hedge funds have also recently added to or reduced their stakes in NET. Vanguard Group Inc. boosted its stake in shares of Cloudflare by 1.8% in the 1st quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock valued at $3,475,011,000 after purchasing an additional 538,850 shares during the last quarter. American Century Companies Inc. boosted its stake in Cloudflare by 34.5% during the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after acquiring an additional 779,819 shares during the last quarter. Northern Trust Corp boosted its stake in Cloudflare by 1.7% during the 1st quarter. Northern Trust Corp now owns 1,880,888 shares of the company's stock worth $211,957,000 after acquiring an additional 31,745 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Cloudflare by 8.1% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,321,208 shares of the company's stock worth $148,887,000 after buying an additional 99,448 shares during the period. Finally, Raymond James Financial Inc. raised its holdings in Cloudflare by 129.7% during the 1st quarter. Raymond James Financial Inc. now owns 1,097,235 shares of the company's stock worth $123,647,000 after buying an additional 619,526 shares during the period. Institutional investors own 82.68% of the company's stock.

Analyst Ratings Changes

NET has been the topic of a number of recent research reports. Scotiabank lifted their price objective on shares of Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a report on Friday, August 1st. Mizuho upped their price objective on shares of Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Susquehanna reduced their target price on shares of Cloudflare from $170.00 to $140.00 and set a "neutral" rating for the company in a research report on Monday, May 12th. Capital One Financial raised shares of Cloudflare from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 8th. Finally, Citigroup boosted their target price on shares of Cloudflare from $240.00 to $255.00 and gave the company a "buy" rating in a research report on Monday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $191.28.

Cloudflare Trading Up 1.6%

NET opened at $195.9330 on Monday. Cloudflare, Inc. has a twelve month low of $74.88 and a twelve month high of $219.00. The company has a 50-day simple moving average of $193.75 and a 200 day simple moving average of $156.93. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $68.28 billion, a price-to-earnings ratio of -576.27 and a beta of 1.84.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.18 by $0.03. The firm had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The business's quarterly revenue was up 27.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.20 earnings per share. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Analysts predict that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Insider Transactions at Cloudflare

In other news, CFO Thomas J. Seifert sold 59,130 shares of the company's stock in a transaction that occurred on Monday, July 28th. The stock was sold at an average price of $200.30, for a total value of $11,843,739.00. Following the completion of the transaction, the chief financial officer owned 241,550 shares of the company's stock, valued at $48,382,465. This represents a 19.67% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Thomas J. Seifert sold 34,270 shares of the company's stock in a transaction that occurred on Monday, July 21st. The shares were sold at an average price of $200.17, for a total value of $6,859,825.90. Following the completion of the transaction, the chief financial officer directly owned 241,550 shares of the company's stock, valued at $48,351,063.50. This represents a 12.42% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 630,323 shares of company stock worth $118,661,105. 10.89% of the stock is owned by corporate insiders.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.

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