Kayne Anderson Rudnick Investment Management LLC Decreases Holdings in Cloudflare, Inc. $NET

Key Points

• Kayne Anderson Rudnick Investment Management LLC reduced its stake in Cloudflare, Inc. by 7.9%, owning 604,245 shares valued at approximately $68.1 million after selling over 51,000 shares in the first quarter.
• Many other investors increased their positions, with GAMMA Investing LLC raising its stake by 86.8% and American Century Companies Inc. raising its stake by 34.5%.
• Cloudflare shares recently received multiple upgrades from analysts, with price targets ranging from $150 to $224, reflecting a consensus rating of "Moderate Buy" and a target price of $191.28.

Kayne Anderson Rudnick Investment Management LLC cut its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 7.9% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 604,245 shares of the company's stock after selling 51,480 shares during the quarter. Kayne Anderson Rudnick Investment Management LLC owned 0.18% of Cloudflare worth $68,092,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. GAMMA Investing LLC raised its stake in shares of Cloudflare by 86.8% during the first quarter. GAMMA Investing LLC now owns 1,093 shares of the company's stock worth $123,000 after acquiring an additional 508 shares in the last quarter. Wealthedge Investment Advisors LLC raised its stake in shares of Cloudflare by 64.5% during the first quarter. Wealthedge Investment Advisors LLC now owns 12,132 shares of the company's stock worth $1,367,000 after acquiring an additional 4,755 shares in the last quarter. American Century Companies Inc. raised its stake in shares of Cloudflare by 34.5% during the first 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 in the last quarter. Crossmark Global Holdings Inc. raised its stake in shares of Cloudflare by 9.6% during the first quarter. Crossmark Global Holdings Inc. now owns 2,635 shares of the company's stock worth $297,000 after acquiring an additional 230 shares in the last quarter. Finally, Amalgamated Bank grew its holdings in shares of Cloudflare by 7.0% in the first quarter. Amalgamated Bank now owns 21,402 shares of the company's stock worth $2,412,000 after purchasing an additional 1,400 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. CICC Research upgraded shares of Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 target price on the stock in a report on Monday, May 12th. Robert W. Baird raised their target price on shares of Cloudflare from $148.00 to $175.00 and gave the stock a "neutral" rating in a report on Friday, July 25th. Cowen restated a "buy" rating on shares of Cloudflare in a report on Monday, June 16th. Piper Sandler raised their target price on shares of Cloudflare from $151.00 to $224.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Finally, Jefferies Financial Group cut their target price on shares of Cloudflare from $170.00 to $150.00 and set a "hold" rating on the stock in a report on Friday, May 9th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $191.28.

Insider Activity at Cloudflare

In other news, CEO Matthew Prince sold 536 shares of the stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $194.84, for a total transaction of $104,434.24. Following the completion of the transaction, the chief executive officer directly owned 20,111 shares of the company's stock, valued at approximately $3,918,427.24. This represents a 2.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Douglas James Kramer sold 3,000 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $198.22, for a total value of $594,660.00. Following the transaction, the insider directly owned 157,377 shares of the company's stock, valued at approximately $31,195,268.94. This trade represents a 1.87% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 630,323 shares of company stock worth $118,661,105 in the last ninety days. Company insiders own 10.89% of the company's stock.

Cloudflare Stock Up 1.6%

Shares of NYSE NET opened at $195.9330 on Monday. The stock has a market cap of $68.28 billion, a PE ratio of -576.27 and a beta of 1.84. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. Cloudflare, Inc. has a 52-week low of $74.88 and a 52-week high of $219.00. The business has a 50-day moving average price of $193.75 and a 200 day moving average price of $156.93.

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

Cloudflare Company Profile

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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