Magnetar Financial LLC Invests $601,000 in Cloudflare, Inc. $NET

Key Points

• Magnetar Financial LLC has acquired a new stake in Cloudflare, Inc. valued at approximately $601,000 by purchasing 5,335 shares.
• Other institutional investors, such as GAMMA Investing LLC and American Century Companies Inc., have also increased their holdings in Cloudflare, contributing to a total institutional ownership of 82.68%.
• Cloudflare's stock recently opened at $208.96, with a market cap of $72.82 billion and a reported 27.8% increase in revenue year-over-year.

Magnetar Financial LLC bought a new position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 5,335 shares of the company's stock, valued at approximately $601,000.

A number of other large investors have also recently made changes to their positions in the company. Mather Group LLC. increased its stake in Cloudflare by 1,188.2% in the first quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after purchasing an additional 202 shares during the last quarter. NBC Securities Inc. purchased a new position in Cloudflare in the first quarter valued at approximately $27,000. GPS Wealth Strategies Group LLC increased its stake in Cloudflare by 213.4% in the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock valued at $29,000 after purchasing an additional 175 shares during the last quarter. MassMutual Private Wealth & Trust FSB increased its stake in Cloudflare by 115.4% in the first 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 last quarter. Finally, Gordian Capital Singapore Pte Ltd purchased a new position in Cloudflare in the fourth quarter valued at approximately $43,000. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Jefferies Financial Group dropped their price target on shares of Cloudflare from $170.00 to $150.00 and set a "hold" rating on the stock in a research note on Friday, May 9th. Guggenheim increased their price objective on Cloudflare from $70.00 to $111.00 and gave the company a "sell" rating in a report on Friday, August 1st. Piper Sandler increased their price objective on Cloudflare from $151.00 to $224.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Citigroup increased their price objective on Cloudflare from $240.00 to $255.00 and gave the company a "buy" rating in a report on Monday, August 18th. Finally, CICC Research raised Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 price objective for the company in a report on Monday, May 12th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, Cloudflare presently has an average rating of "Moderate Buy" and a consensus price target of $191.28.

Cloudflare Stock Performance

NYSE NET traded up $4.46 during trading hours on Friday, hitting $214.44. 1,628,090 shares of the stock were exchanged, compared to its average volume of 3,521,422. The company has a market cap of $74.73 billion, a price-to-earnings ratio of -630.71 and a beta of 1.95. Cloudflare, Inc. has a 12-month low of $74.88 and a 12-month high of $219.00. The stock has a 50-day moving average of $197.79 and a 200 day moving average of $159.26. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63.

Cloudflare (NYSE:NET - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.03. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The company had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. During the same quarter last year, the company earned $0.20 earnings per share. Cloudflare's quarterly revenue was up 27.8% compared to the same quarter last year. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, equities research analysts forecast that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling

In other Cloudflare news, CFO Thomas J. Seifert sold 41,555 shares of the firm's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $190.64, for a total value of $7,922,045.20. Following the completion of the sale, the chief financial officer owned 189,517 shares of the company's stock, valued at approximately $36,129,520.88. This trade represents a 17.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Graham-Cumming sold 10,215 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $206.32, for a total value of $2,107,558.80. Following the completion of the sale, the director directly owned 495,191 shares of the company's stock, valued at approximately $102,167,807.12. This trade represents a 2.02% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 687,029 shares of company stock valued at $130,970,115 in the last quarter. Corporate insiders own 10.89% of the company's stock.

Cloudflare Profile

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.