M&T Bank Corp Sells 8,198 Shares of Cloudflare, Inc. $NET

Key Points

• M&T Bank Corp cut its Cloudflare stake by 77.8%, selling 8,198 shares and leaving it with 2,334 shares worth about $460,000 at quarter-end.
• Heavy insider selling: CFO Thomas Seifert and CEO Matthew Prince recently sold substantial holdings (41,557 and 52,384 shares, respectively), and insiders have sold 619,238 shares valued at roughly $121 million in the past 90 days, though insiders still own 10.89% of the company.
• Mixed fundamentals and analyst view: Cloudflare beat EPS ($0.28 vs. $0.27) and revenue ($614.5M vs. $591.7M) with 33.6% YoY revenue growth, but remains unprofitable (negative net margin/ROE); analysts rate it a "Moderate Buy" with an average price target of $232.62.

M&T Bank Corp lessened its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 77.8% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The firm owned 2,334 shares of the company's stock after selling 8,198 shares during the quarter. M&T Bank Corp's holdings in Cloudflare were worth $460,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Physician Wealth Advisors Inc. grew its holdings in Cloudflare by 693.3% in 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 Cloudflare in the third quarter worth about $26,000. Westside Investment Management Inc. grew its holdings in 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 purchasing an additional 65 shares during the period. ORG Wealth Partners LLC grew its holdings in shares of Cloudflare by 101.4% during the third quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock valued at $30,000 after buying an additional 70 shares during the last quarter. Finally, Wexford Capital LP purchased a new stake in shares of Cloudflare during the third quarter valued at approximately $30,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Insider Buying and Selling

In related news, CFO Thomas J. Seifert sold 41,557 shares of Cloudflare stock in a transaction dated 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 $15,812,038.08. This trade represents a 32.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $173.78, for a total transaction of $9,103,291.52. Following the sale, the chief executive officer owned 22,911 shares of the company's stock, valued at $3,981,473.58. The trade was a 69.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 619,238 shares of company stock valued at $121,070,031. Company insiders own 10.89% of the company's stock.

Cloudflare Stock Performance

Shares of NYSE:NET opened at $217.82 on Friday. Cloudflare, Inc. has a 52 week low of $120.46 and a 52 week high of $260.00. The stock has a market capitalization of $76.67 billion, a P/E ratio of -751.07 and a beta of 1.67. The firm has a fifty day simple moving average of $199.89 and a two-hundred day simple moving average of $200.17. 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 (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, topping analysts' consensus estimates of $0.27 by $0.01. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The business had revenue of $614.51 million during the quarter, compared to analysts' expectations of $591.67 million. During the same period last year, the company posted $0.19 EPS. The business's revenue was up 33.6% on a year-over-year basis. On average, analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have recently commented on the stock. Barclays increased their price target on shares of Cloudflare from $235.00 to $250.00 and gave the company an "overweight" rating in a report on Wednesday, February 11th. Citigroup initiated coverage on shares of Cloudflare in a research report on Wednesday, April 15th. They issued a "buy" rating on the stock. Wells Fargo & Company increased their price target on shares of Cloudflare from $265.00 to $270.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. The Goldman Sachs Group downgraded shares of Cloudflare from a "buy" rating to a "sell" rating in a research report on Wednesday, April 15th. Finally, Mizuho decreased their price objective on shares of Cloudflare from $255.00 to $235.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 14th. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $232.62.

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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