Kodai Capital Management LP Grows Position in Cloudflare, Inc. $NET

Key Points

• Kodai Capital Management LP significantly increased its stake in Cloudflare, Inc., boosting ownership by 87.1% and holding 254,642 shares valued at approximately $28.7 million.
• Institutional investors collectively own 82.68% of Cloudflare's shares, with notable holdings increased by firms such as Mather Group LLC and Global Financial Private Client LLC.
• Analysts have set a consensus price target of $191.28 for Cloudflare, with several firms issuing "buy" ratings and recent price increases from multiple investment banks.

Kodai Capital Management LP lifted its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 87.1% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 254,642 shares of the company's stock after buying an additional 118,569 shares during the quarter. Kodai Capital Management LP owned about 0.07% of Cloudflare worth $28,696,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors also recently modified their holdings of the company. Mather Group LLC. grew its position in shares of Cloudflare by 1,188.2% during the 1st quarter. Mather Group LLC. now owns 219 shares of the company's stock worth $25,000 after buying an additional 202 shares during the period. NBC Securities Inc. acquired a new stake in shares of Cloudflare during the 1st quarter worth approximately $27,000. GPS Wealth Strategies Group LLC grew its position in shares of Cloudflare by 213.4% during the 1st quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock worth $29,000 after buying an additional 175 shares during the period. MassMutual Private Wealth & Trust FSB grew its position in Cloudflare by 115.4% in the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock valued at $30,000 after purchasing an additional 142 shares during the period. Finally, Gordian Capital Singapore Pte Ltd bought a new stake in Cloudflare during the 4th quarter valued at $43,000. Institutional investors and hedge funds own 82.68% of the company's stock.

Analysts Set New Price Targets

NET has been the subject of a number of recent research reports. Capital One Financial upgraded shares of Cloudflare from a "hold" rating to a "strong-buy" rating in a research note on Thursday, May 8th. Scotiabank boosted their price target on shares of Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a research note on Friday, August 1st. CICC Research upgraded shares of Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 price target for the company in a research note on Monday, May 12th. Morgan Stanley boosted their price target on shares of Cloudflare from $225.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Finally, Oppenheimer restated an "outperform" rating and set a $200.00 price objective (up from $165.00) on shares of Cloudflare in a research note on Thursday, June 5th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $191.28.

Insider Buying and Selling

In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of the stock in a transaction on Friday, August 1st. The stock was sold at an average price of $198.22, for a total transaction of $594,660.00. Following the completion of the transaction, the insider directly owned 157,377 shares of the company's stock, valued at approximately $31,195,268.94. This represents a 1.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Carl Ledbetter sold 15,000 shares of the business's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $195.73, for a total value of $2,935,950.00. Following the completion of the sale, the director owned 1,028,073 shares in the company, valued at approximately $201,224,728.29. The trade was a 1.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 728,705 shares of company stock worth $137,798,322 in the last three months. Insiders own 10.89% of the company's stock.

Cloudflare Stock Performance

Shares of Cloudflare stock traded down $4.46 during trading hours on Monday, hitting $208.96. 2,095,088 shares of the company's stock traded hands, compared to its average volume of 2,356,969. The company has a fifty day simple moving average of $196.16 and a 200-day simple moving average of $158.05. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14. The stock has a market capitalization of $72.82 billion, a price-to-earnings ratio of -614.60 and a beta of 1.95. Cloudflare, Inc. has a 12-month low of $74.88 and a 12-month high of $219.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.03. The company had revenue of $512.32 million during the quarter, compared to analyst estimates of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The firm's revenue for the quarter was up 27.8% on a year-over-year basis. During the same quarter in the prior year, the business 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. Equities research analysts anticipate that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

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.