Kirtland Hills Capital Management LLC Invests $2.87 Million in Cloudflare, Inc. $NET

Key Points

• Kirtland Hills Capital Management initiated a $2.87 million position in Cloudflare during the second quarter, buying 11,695 shares. Institutional investors collectively own 82.68% of the company.
• Cloudflare insiders sold 682,415 shares worth approximately $177.4 million over the past quarter, including significant sales by the co-founder and CFO under pre-arranged Rule 10b5-1 plans.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $320.19. Cloudflare’s latest quarterly revenue rose 35.9% year over year to $696.06 million, exceeding estimates.

Kirtland Hills Capital Management LLC bought a new position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm bought 11,695 shares of the company's stock, valued at approximately $2,869,000.

Other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in shares of Cloudflare by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company's stock worth $6,389,167,000 after buying an additional 90,397 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Cloudflare by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company's stock valued at $1,184,044,000 after acquiring an additional 241,981 shares during the last quarter. Jennison Associates LLC boosted its holdings in shares of Cloudflare by 135.8% in the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after acquiring an additional 2,530,872 shares in the last quarter. First Trust Advisors LP boosted its holdings in shares of Cloudflare by 1.6% in the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company's stock worth $792,377,000 after acquiring an additional 63,198 shares in the last quarter. Finally, Invesco Ltd. grew its position in Cloudflare by 1.3% during the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock worth $850,792,000 after acquiring an additional 49,485 shares during the last quarter. 82.68% of the stock is owned by institutional investors.

Insider Buying and Selling at Cloudflare

In other news, insider Michelle Zatlyn sold 33,003 shares of the company's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $294.63, for a total value of $9,723,673.89. Following the completion of the sale, the insider directly owned 69,775 shares of the company's stock, valued at $20,557,808.25. This represents a 32.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 55,000 shares of Cloudflare stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the transaction, the chief financial officer directly owned 113,790 shares in the company, valued at $34,171,137. The trade was a 32.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 682,415 shares of company stock valued at $177,417,210. 10.66% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on NET shares. Deutsche Bank Aktiengesellschaft upgraded Cloudflare to a "buy" rating in a research report on Tuesday, July 7th. Oppenheimer raised their target price on Cloudflare from $330.00 to $380.00 and gave the company an "outperform" rating in a research note on Friday, August 7th. KeyCorp lifted their price target on Cloudflare from $300.00 to $375.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Morgan Stanley reiterated an "overweight" rating and set a $370.00 price target on shares of Cloudflare in a research report on Friday, August 7th. Finally, UBS Group increased their price objective on shares of Cloudflare from $250.00 to $350.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $320.19.

Cloudflare Price Performance

NET opened at $293.16 on Friday. The company has a fifty day moving average price of $268.24 and a two-hundred day moving average price of $227.45. The firm has a market capitalization of $103.62 billion, a PE ratio of -505.45, a P/E/G ratio of 175.14 and a beta of 1.65. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $332.22. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The company had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. During the same quarter in the prior year, the business posted $0.21 EPS. The firm's quarterly revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

About Cloudflare

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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