LGT Fund Management Co Ltd. Buys New Position in Cloudflare, Inc. $NET

Key Points

• LGT Fund Management initiated a new position in Cloudflare during the first quarter, buying 39,292 shares valued at about $8.1 million.
• Institutional interest remains strong overall, with 82.68% of Cloudflare’s stock held by institutional investors and several major funds, including Vanguard and Geode, expanding their stakes.
• Analysts have turned more bullish on NET: Scotiabank upgraded the stock to Sector Outperform with a $300 target, while BTIG raised its target to $314; the consensus rating is still Moderate Buy.

LGT Fund Management Co Ltd. bought a new stake in Cloudflare, Inc. (NYSE:NET - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 39,292 shares of the company's stock, valued at approximately $8,108,000.

Other hedge funds also recently made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in 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 purchasing an additional 90,397 shares during the last quarter. Geode Capital Management LLC lifted its position in Cloudflare by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company's stock worth $1,184,044,000 after buying an additional 241,981 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of Cloudflare by 1.6% during the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company's stock worth $792,377,000 after buying an additional 63,198 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Cloudflare by 1.3% in the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock valued at $850,792,000 after acquiring an additional 49,485 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Cloudflare in the 4th quarter valued at about $718,316,000. 82.68% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several analysts recently issued reports on NET shares. Sanford C. Bernstein reissued a "market perform" rating and set a $136.00 price target on shares of Cloudflare in a research report on Wednesday, June 10th. Piper Sandler reiterated an "overweight" rating on shares of Cloudflare in a research note on Wednesday, June 10th. Scotiabank raised Cloudflare from a "sector perform" rating to a "sector outperform" rating and increased their price objective for the company from $225.00 to $300.00 in a report on Tuesday, July 7th. Cantor Fitzgerald reissued a "neutral" rating and issued a $230.00 target price (up from $224.00) on shares of Cloudflare in a research note on Wednesday, June 10th. Finally, Stifel Nicolaus set a $260.00 target price on shares of Cloudflare in a research note on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $245.96.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: BTIG Research raised its price target on Cloudflare to $314 from $269 and kept a Buy rating, signaling further upside potential for the stock. BTIG raises Cloudflare price target
• Positive Sentiment: Scotiabank upgraded Cloudflare to Sector Outperform with a $300 target, citing AI, agentic traffic, edge computing, and zero-trust security as key growth drivers. Scotiabank upgrades Cloudflare
• Positive Sentiment: Multiple articles highlighted Cloudflare as one of the cloud-computing names best positioned to benefit from AI-driven data-center growth in the second half of 2026. Cloudflare named as a top cloud computing stock
• Positive Sentiment: Coverage around Cloudflare’s deal with OpenAI and broader AI infrastructure buzz has added to optimism that the company can capture more AI-related traffic and demand. Cloudflare deal with OpenAI
• Neutral Sentiment: Director Carl Ledbetter sold 5,000 shares, but the transaction was done under a pre-arranged Rule 10b5-1 plan and is not necessarily a negative fundamental signal. Carl Ledbetter sells Cloudflare shares
• Neutral Sentiment: Recent roundup pieces comparing Cloudflare with other content-delivery stocks did not appear to change the investment thesis materially, but they helped keep NET in the spotlight. Cloudflare versus content delivery peers

Cloudflare Stock Performance

NYSE:NET traded down $7.34 on Friday, hitting $268.46. The company's stock had a trading volume of 2,301,316 shares, compared to its average volume of 2,982,934. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The stock has a fifty day moving average of $231.89 and a two-hundred day moving average of $207.40. The firm has a market capitalization of $94.89 billion, a P/E ratio of -1,073.84, a price-to-earnings-growth ratio of 270.32 and a beta of 1.67. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $280.14.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The company had revenue of $639.75 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm's revenue for the quarter was up 33.5% compared to the same quarter last year. During the same period in the previous year, the company posted $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. Research analysts predict that Cloudflare, Inc. will post 0.02 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $213.98, for a total value of $7,506,418.40. Following the transaction, the insider directly owned 47,425 shares of the company's stock, valued at $10,148,001.50. This represents a 42.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the firm's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 626,185 shares of company stock valued at $139,810,855. Company insiders own 10.66% of the company's stock.

Cloudflare Profile

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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