Legal & General Group Plc Purchases 131,127 Shares of Cloudflare, Inc. $NET

Key Points

• Legal & General Group Plc increased its Cloudflare stake by 4.9% in Q4, buying 131,127 shares and ending with 2,824,772 shares valued at about $556.9 million.
• Cloudflare reported strong quarterly results, posting EPS of $0.25 versus the $0.23 estimate and revenue of $639.8 million, up 33.5% year over year.
• Insiders have been selling shares, including director Carl Ledbetter and CAO Janel Riley, while analysts currently rate the stock a Moderate Buy with an average price target of $236.68.

Legal & General Group Plc grew its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 4.9% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 2,824,772 shares of the company's stock after acquiring an additional 131,127 shares during the quarter. Legal & General Group Plc owned 0.81% of Cloudflare worth $556,904,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the company. Simplify Asset Management Inc. lifted its position in shares of Cloudflare by 42.4% in the 4th quarter. Simplify Asset Management Inc. now owns 1,873 shares of the company's stock worth $369,000 after acquiring an additional 558 shares during the period. Swedbank AB lifted its position in shares of Cloudflare by 165.1% during the 4th quarter. Swedbank AB now owns 116,309 shares of the company's stock worth $22,930,000 after buying an additional 72,431 shares during the period. Fideuram Intesa Sanpaolo Private Banking S.P.A. bought a new position in shares of Cloudflare during the 4th quarter worth approximately $314,000. Jefferies Financial Group Inc. lifted its position in shares of Cloudflare by 1,141.2% during the 4th quarter. Jefferies Financial Group Inc. now owns 38,255 shares of the company's stock worth $7,542,000 after buying an additional 35,173 shares during the period. Finally, Americana Partners LLC lifted its position in shares of Cloudflare by 71.3% during the 4th quarter. Americana Partners LLC now owns 1,739 shares of the company's stock worth $343,000 after buying an additional 724 shares during the period. Institutional investors own 82.68% of the company's stock.

Cloudflare Trading Up 0.0%

NET stock opened at $216.24 on Tuesday. The business has a fifty day moving average price of $207.77 and a 200 day moving average price of $198.90. Cloudflare, Inc. has a fifty-two week low of $154.93 and a fifty-two week high of $260.00. The stock has a market capitalization of $76.43 billion, a price-to-earnings ratio of -864.96 and a beta of 1.67. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The business's revenue for the quarter was up 33.5% on a year-over-year basis. During the same period last year, the firm earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Insider Buying and Selling

In other news, Director Carl Ledbetter sold 15,000 shares of Cloudflare stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $238.12, for a total value of $3,571,800.00. Following the completion of the sale, the director directly owned 908,073 shares of the company's stock, valued at approximately $216,230,342.76. This trade represents a 1.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Janel Riley sold 3,481 shares of Cloudflare stock in a transaction on Monday, May 18th. The stock was sold at an average price of $193.32, for a total value of $672,946.92. Following the sale, the chief accounting officer directly owned 49,163 shares of the company's stock, valued at approximately $9,504,191.16. This trade represents a 6.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 577,525 shares of company stock worth $118,153,351. 10.89% of the stock is currently owned by company insiders.

Analyst Ratings Changes

NET has been the subject of several analyst reports. KeyCorp downgraded Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. Scotiabank cut their target price on Cloudflare from $255.00 to $225.00 and set a "sector perform" rating for the company in a research report on Wednesday, February 11th. Royal Bank Of Canada restated an "outperform" rating on shares of Cloudflare in a research report on Friday. Wolfe Research restated a "peer perform" rating on shares of Cloudflare in a research report on Monday, January 26th. Finally, UBS Group reaffirmed a "neutral" rating and set a $220.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Eighteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $236.68.

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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