MUFG Securities EMEA plc Acquires Shares of 73,514 Cloudflare, Inc. $NET

Key Points

• MUFG Securities EMEA plc disclosed a new fourth-quarter stake in Cloudflare, buying 73,514 shares valued at about $14.49 million.
• Cloudflare insiders have been selling shares, including CEO Matthew Prince and Director Carl Ledbetter, with insider sales totaling 585,862 shares worth roughly $121.99 million over the last quarter.
• Cloudflare reported solid quarterly results, posting EPS of $0.25 and revenue of $639.76 million, both above estimates, while shares were trading near $241.82 and analysts maintained a Moderate Buy consensus.

MUFG Securities EMEA plc acquired a new stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor acquired 73,514 shares of the company's stock, valued at approximately $14,493,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Frank Rimerman Advisors LLC boosted its holdings in shares of Cloudflare by 1.8% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 2,821 shares of the company's stock valued at $605,000 after purchasing an additional 51 shares during the last quarter. Brown Brothers Harriman & Co. lifted its holdings 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 acquiring an additional 56 shares during the last quarter. Silver Oak Securities Incorporated lifted its holdings in shares of Cloudflare by 5.5% in the 4th quarter. Silver Oak Securities Incorporated now owns 1,090 shares of the company's stock valued at $218,000 after acquiring an additional 57 shares during the last quarter. Certuity LLC lifted its holdings in shares of Cloudflare by 1.8% in the 4th quarter. Certuity LLC now owns 3,156 shares of the company's stock valued at $622,000 after acquiring an additional 57 shares during the last quarter. Finally, Rothschild Investment LLC lifted its holdings in shares of Cloudflare by 37.4% in the 3rd quarter. Rothschild Investment LLC now owns 224 shares of the company's stock valued at $48,000 after acquiring an additional 61 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on NET. Guggenheim increased their price target on shares of Cloudflare from $117.00 to $140.00 and gave the company a "sell" rating in a report on Wednesday, February 11th. Citigroup began coverage on shares of Cloudflare in a report on Wednesday, April 15th. They issued a "buy" rating for the company. Scotiabank lowered their price target on shares of Cloudflare from $255.00 to $225.00 and set a "sector perform" rating for the company in a report on Wednesday, February 11th. New Street Research set a $140.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Finally, Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $224.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. Eighteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, Cloudflare currently has a consensus rating of "Moderate Buy" and a consensus price target of $236.68.

Insiders Place Their Bets

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the firm's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $210.66, for a total value of $11,035,213.44. Following the completion of the sale, the chief executive officer owned 25,550 shares of the company's stock, valued at $5,382,363. This trade represents a 67.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 15,000 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $238.12, for a total transaction of $3,571,800.00. Following the completion of the sale, the director directly owned 908,073 shares of the company's stock, valued at approximately $216,230,342.76. The trade was a 1.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 585,862 shares of company stock valued at $121,988,011 over the last quarter. Corporate insiders own 10.89% of the company's stock.

Cloudflare Stock Up 6.0%

Shares of NYSE NET opened at $241.82 on Friday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The company has a market cap of $85.48 billion, a P/E ratio of -967.27 and a beta of 1.67. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $260.00. The firm has a 50-day simple moving average of $208.57 and a two-hundred day simple moving average of $198.97.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data 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. The business had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm's quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter last year, the firm earned $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.

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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