Los Angeles Capital Management LLC Acquires 72,555 Shares of Cloudflare, Inc. $NET

Key Points

• Los Angeles Capital Management boosted its Cloudflare position by 40.5% in the fourth quarter, buying 72,555 shares and lifting its stake to 251,529 shares worth about $49.6 million.
• Cloudflare reported better-than-expected quarterly results, with EPS of $0.25 versus $0.23 expected and revenue of $639.76 million versus $620.83 million estimated, while revenue rose 33.5% year over year.
• Analyst sentiment remains mixed but generally positive, with a Moderate Buy consensus and an average price target of $239.08, even as some firms recently downgraded or trimmed targets.

Los Angeles Capital Management LLC grew its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 40.5% during the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 251,529 shares of the company's stock after purchasing an additional 72,555 shares during the period. Los Angeles Capital Management LLC owned about 0.07% of Cloudflare worth $49,589,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in NET. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare in the 3rd quarter valued at $26,000. Westside Investment Management Inc. boosted its stake in shares of Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after purchasing an additional 65 shares in the last quarter. Wexford Capital LP acquired a new stake in shares of Cloudflare in the 3rd quarter valued at $30,000. Ameriflex Group Inc. boosted its stake in shares of Cloudflare by 105.6% in the 3rd quarter. Ameriflex Group Inc. now owns 148 shares of the company's stock valued at $32,000 after purchasing an additional 76 shares in the last quarter. Finally, Brown Brothers Harriman & Co. boosted its stake in shares of Cloudflare by 55.4% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after purchasing an additional 56 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare Stock Performance

Shares of NYSE:NET opened at $250.35 on Friday. The stock has a market capitalization of $88.49 billion, a P/E ratio of -1,001.40 and a beta of 1.70. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $276.82. 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 business has a 50-day moving average price of $213.32 and a two-hundred day moving average price of $200.38.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate of $0.23 by $0.02. The firm 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 company's quarterly revenue was up 33.5% compared to the same quarter last year. During the same period in the previous year, the business 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.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on NET shares. KeyCorp downgraded shares of Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. Morgan Stanley reiterated an "overweight" rating and set a $305.00 price target on shares of Cloudflare in a research report on Thursday. Susquehanna upped their price target on shares of Cloudflare from $190.00 to $200.00 and gave the stock a "neutral" rating in a research report on Monday, May 11th. Needham & Company LLC reduced their price target on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating on the stock in a research report on Wednesday, February 11th. Finally, Piper Sandler reiterated an "overweight" rating and set a $250.00 price target (up from $222.00) on shares of Cloudflare in a research report on Friday, May 8th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $239.08.

Insider Activity

In other news, insider Alissa Michelle Starzak sold 16,243 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $216.15, for a total value of $3,510,924.45. Following the completion of the sale, the insider directly owned 118,395 shares of the company's stock, valued at $25,591,079.25. This represents a 12.06% 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, CAO Janel Riley sold 3,481 shares of the company's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $193.32, for a total value of $672,946.92. Following the completion of 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 527,491 shares of company stock worth $111,729,711. Corporate insiders own 10.89% of the company's stock.

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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