LGT Group Foundation Has $9.56 Million Stock Position in Cloudflare, Inc. $NET

Key Points

• LGT Group Foundation reduced its stake by 24.9% in Cloudflare during Q3, selling 14,629 shares and ending the period with 44,025 shares valued at $9.556 million.
• Significant insider selling: company insiders sold 577,492 shares worth about $107.9 million over the past three months (including sales by the CFO and CAO), while insiders still own 10.89% of the stock.
• Cloudflare beat estimates with Q revenue of $614.51 million (up 33.6% YoY) and $0.28 EPS, and the stock carries a consensus analyst rating of "Moderate Buy" with a $230.70 target and ~82.7% institutional ownership.

LGT Group Foundation reduced its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 24.9% during the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 44,025 shares of the company's stock after selling 14,629 shares during the quarter. LGT Group Foundation's holdings in Cloudflare were worth $9,556,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Cloudflare during the second quarter worth approximately $541,462,000. Groupama Asset Managment acquired a new stake in Cloudflare during the 2nd quarter worth approximately $225,204,000. Vanguard Group Inc. boosted its stake in Cloudflare by 2.6% in the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock valued at $6,934,958,000 after purchasing an additional 821,684 shares during the period. KBC Group NV boosted its stake in Cloudflare by 1,388.7% in the 2nd quarter. KBC Group NV now owns 736,153 shares of the company's stock valued at $144,161,000 after purchasing an additional 686,702 shares during the period. Finally, Rakuten Investment Management Inc. acquired a new position in Cloudflare in the 3rd quarter valued at $138,660,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Cloudflare Trading Up 1.3%

NET opened at $194.79 on Monday. The stock has a market capitalization of $68.23 billion, a price-to-earnings ratio of -671.67 and a beta of 1.98. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. Cloudflare, Inc. has a twelve month low of $89.42 and a twelve month high of $260.00. The company has a 50-day simple moving average of $184.30 and a 200 day simple moving average of $202.59.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.27 by $0.01. The firm had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The business's quarterly revenue was up 33.6% compared to the same quarter last year. During the same period last year, the firm earned $0.19 EPS. Analysts predict that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 41,557 shares of the company's stock in a transaction on Friday, February 20th. The stock was sold at an average price of $185.04, for a total transaction of $7,689,707.28. Following the completion of the sale, the chief financial officer directly owned 85,452 shares in the company, valued at $15,812,038.08. This represents a 32.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Janel Riley sold 23,332 shares of the firm's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $190.00, for a total value of $4,433,080.00. Following the completion of the sale, the chief accounting officer directly owned 56,791 shares in the company, valued at approximately $10,790,290. This represents a 29.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 577,492 shares of company stock worth $107,933,433 in the last three months. Company insiders own 10.89% of the company's stock.

Wall Street Analysts Forecast Growth

NET has been the topic of several recent research reports. Mizuho lowered their price objective on Cloudflare from $280.00 to $255.00 and set an "outperform" rating on the stock in a research report on Wednesday, January 21st. Guggenheim boosted their target price on shares of Cloudflare from $117.00 to $140.00 and gave the company a "sell" rating in a research report on Wednesday, February 11th. TD Cowen restated a "buy" rating on shares of Cloudflare in a research note on Tuesday, January 27th. BTIG Research raised their price target on shares of Cloudflare from $199.00 to $243.00 and gave the stock a "buy" rating in a research report on Wednesday, February 11th. Finally, Barclays lifted their price objective on shares of Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $230.70.

Cloudflare Company 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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