Mitsubishi UFJ Asset Management Co. Ltd. Acquires 16,054 Shares of Cloudflare, Inc. $NET

Key Points

• Mitsubishi UFJ Asset Management increased its Cloudflare stake by 5.5% in the fourth quarter, buying 16,054 more shares and bringing its total holdings to 308,154 shares worth about $60.4 million.
• Cloudflare’s latest earnings beat expectations, with Q1 EPS of $0.25 and revenue of $639.8 million, up 33.5% year over year. The company also raised its full-year 2026 outlook, though investors were still disappointed by softer near-term guidance.
• Analyst sentiment remains mixed: Jefferies started coverage with a buy rating, while Goldman Sachs downgraded the stock to sell. Overall, Wall Street consensus is still Moderate Buy with a target price of $233.12.

Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 5.5% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 308,154 shares of the company's stock after purchasing an additional 16,054 shares during the quarter. Mitsubishi UFJ Asset Management Co. Ltd. owned about 0.09% of Cloudflare worth $60,404,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Physician Wealth Advisors Inc. boosted its position in Cloudflare by 693.3% during the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC purchased a new stake in shares of Cloudflare in the third quarter worth about $26,000. Westside Investment Management Inc. lifted its holdings in shares of Cloudflare by 100.0% in the third quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock worth $28,000 after buying an additional 65 shares in the last quarter. ORG Wealth Partners LLC lifted its holdings in shares of Cloudflare by 101.4% in the third quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock worth $30,000 after buying an additional 70 shares in the last quarter. Finally, Wexford Capital LP purchased a new stake in shares of Cloudflare in the third quarter worth about $30,000. Institutional investors own 82.68% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently issued reports on NET. Jefferies Financial Group began coverage on shares of Cloudflare in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. The Goldman Sachs Group downgraded shares of Cloudflare from a "buy" rating to a "sell" rating in a research note on Wednesday, April 15th. Scotiabank lowered their target price on shares of Cloudflare from $255.00 to $225.00 and set a "sector perform" rating on the stock in a research note on Wednesday, February 11th. Guggenheim raised their target price on shares of Cloudflare from $117.00 to $140.00 and gave the company a "sell" rating in a research note on Wednesday, February 11th. Finally, TD Cowen reaffirmed a "buy" rating on shares of Cloudflare in a research note on Tuesday, January 27th. Nineteen 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. According to MarketBeat.com, Cloudflare has a consensus rating of "Moderate Buy" and a consensus target price of $233.12.

Key Headlines Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare reported first-quarter EPS of $0.25 and revenue of about $639.8 million, both above Wall Street expectations, with revenue up 33.5% year over year. Article Title
• Positive Sentiment: The company lifted its full-year 2026 outlook, signaling continued confidence in longer-term demand despite the post-earnings drop. Article Title
• Neutral Sentiment: Piper Sandler raised its price target to $250 and kept an Overweight rating, suggesting some analysts still see upside after the pullback. Article Title
• Neutral Sentiment: Cloudflare also highlighted AI as a major long-term growth driver and said it is shifting toward an AI-first operating model, which could improve efficiency over time. Article Title
• Negative Sentiment: The company said it will cut about 1,100 jobs, or roughly 20% of its workforce, as it restructures around AI, raising concerns about disruption and execution risk. Article Title
• Negative Sentiment: Investors were disappointed that Cloudflare’s near-term revenue guidance came in just below expectations, fueling fears that growth may slow as AI infrastructure costs pressure margins. Article Title

Insider Transactions at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction that occurred on Thursday, February 26th. The shares were sold at an average price of $173.78, for a total value of $9,103,291.52. Following the transaction, the chief executive officer owned 22,911 shares in the company, valued at approximately $3,981,473.58. This trade represents a 69.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Thomas J. Seifert sold 41,557 shares of Cloudflare stock in a transaction on Friday, February 20th. The shares were 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 owned 85,452 shares in the company, valued at approximately $15,812,038.08. This trade represents a 32.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 638,766 shares of company stock worth $125,757,221. Insiders own 10.89% of the company's stock.

Cloudflare Trading Down 23.5%

NET stock opened at $196.56 on Friday. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.98 and a current ratio of 1.98. Cloudflare, Inc. has a one year low of $130.20 and a one year high of $260.00. The company has a market capitalization of $69.18 billion, a PE ratio of -786.22 and a beta of 1.67. The company's 50 day moving average price is $204.88 and its two-hundred day moving average price is $200.83.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.84%. The firm had revenue of $639.76 million for the quarter, compared to analysts' expectations of $620.83 million. During the same quarter last year, the business earned $0.16 earnings per share. The business's revenue was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

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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