Meridian Wealth Management LLC Boosts Position in Cloudflare, Inc. $NET

Key Points

• Meridian Wealth Management increased its Cloudflare stake by 188.3% in the fourth quarter, ending with 19,561 shares worth about $3.86 million.
• Cloudflare continues to attract heavy institutional interest, with 82.68% of shares held by hedge funds and other institutions, even as some large investors made additional purchases.
• The company recently beat earnings expectations, reporting $0.25 EPS and $639.8 million in revenue, and it issued upbeat guidance; however, analysts remain mixed, with an average rating of “Moderate Buy” and a consensus target of $236.68.

Meridian Wealth Management LLC boosted its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 188.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 19,561 shares of the company's stock after purchasing an additional 12,775 shares during the quarter. Meridian Wealth Management LLC's holdings in Cloudflare were worth $3,856,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in shares of Cloudflare by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company's stock worth $6,389,167,000 after acquiring an additional 90,397 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock worth $850,792,000 after acquiring an additional 49,485 shares during the last quarter. Groupama Asset Managment raised its holdings in shares of Cloudflare by 82.6% in the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after acquiring an additional 950,000 shares during the last quarter. Northern Trust Corp raised its holdings in shares of Cloudflare by 1.2% in the third quarter. Northern Trust Corp now owns 1,909,120 shares of the company's stock worth $409,678,000 after acquiring an additional 21,715 shares during the last quarter. Finally, Jennison Associates LLC raised its holdings in shares of Cloudflare by 802.6% in the fourth quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock worth $367,411,000 after acquiring an additional 1,657,144 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

NET has been the subject of a number of analyst reports. KeyCorp cut Cloudflare from an "overweight" rating to a "hold" rating in a report on Wednesday, April 15th. Wolfe Research reissued a "peer perform" rating on shares of Cloudflare in a report on Monday, January 26th. Guggenheim boosted their price target on Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a report on Wednesday, February 11th. UBS Group reissued a "neutral" rating and issued a $220.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Finally, Needham & Company LLC cut their price target on Cloudflare from $285.00 to $250.00 and set a "buy" rating for the company 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 assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $236.68.

Cloudflare Stock Performance

Cloudflare stock opened at $187.23 on Wednesday. The firm has a market capitalization of $65.90 billion, a P/E ratio of -748.92 and a beta of 1.67. The stock has a fifty day moving average price of $206.07 and a 200 day moving average price of $200.42. Cloudflare, Inc. has a 52 week low of $143.00 and a 52 week high of $260.00. The company has a current ratio of 1.96, a quick ratio of 1.98 and a debt-to-equity ratio of 1.29.

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 firm had revenue of $639.76 million during the quarter, compared to analyst estimates 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 quarterly revenue was up 33.5% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. Equities research analysts anticipate that Cloudflare, Inc. will post -0.1 earnings per share for the current year.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare reported Q1 revenue of $639.8 million, up 33.5% year over year and above Wall Street expectations, while non-GAAP EPS of $0.25 also beat estimates. Management also guided next quarter revenue near $664.5 million, which was close to analyst forecasts. NET Q1 Deep Dive: AI-Driven Growth Fuels Restructuring Amidst Market Caution
• Positive Sentiment: Susquehanna raised its price target on Cloudflare to $200 from $190 after the earnings beat, signaling that at least some analysts see more upside despite the recent pullback. Cloudflare Just Hit the AI-First Reset Button: Susquehanna Hikes Price Target to $200
• Neutral Sentiment: Cloudflare remains a heavily discussed stock, with multiple articles focusing on analyst ratings and investor interest rather than new fundamental developments. Cloudflare, Inc. (NET) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Wall Street analyst coverage remains favorable on average, but the coverage itself appears to be the subject of debate rather than a fresh catalyst for the stock. Wall Street Analysts Think Cloudflare (NET) Is a Good Investment: Is It?
• Negative Sentiment: Investor sentiment has been weighed down by reports of a major restructuring and roughly 20% job cuts, with executives tying the changes to an AI-first operating model. Cloudflare stock plunges amid 20% job cuts. Executives are blaming AI

Insider Activity at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $209.08, for a total transaction of $10,952,446.72. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Michelle Zatlyn sold 35,080 shares of the company's stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $187.39, for a total value of $6,573,641.20. Following the sale, the insider owned 34,514 shares of the company's stock, valued at $6,467,578.46. This represents a 50.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 636,246 shares of company stock worth $125,320,379. 10.89% of the stock is currently owned by insiders.

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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