Norden Group LLC Trims Stake in Cloudflare, Inc. (NYSE:NET)

Key Points

• Norden Group LLC reduced its stake in Cloudflare, Inc. by 34.0%, now holding 22,717 shares worth approximately $2.56 million after selling 11,706 shares in the first quarter.
• Cloudflare reported a 26.5% year-over-year revenue growth with $479.09 million for the latest quarter, although it missed earnings expectations with an EPS of $0.16.
• Insiders at Cloudflare sold a total of 615,332 shares valued at over $106 million in the last 90 days, indicating significant activity in the company's stock.

Norden Group LLC cut its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 34.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 22,717 shares of the company's stock after selling 11,706 shares during the period. Norden Group LLC's holdings in Cloudflare were worth $2,560,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also modified their holdings of NET. GAMMA Investing LLC lifted its position in Cloudflare by 86.8% during the first quarter. GAMMA Investing LLC now owns 1,093 shares of the company's stock valued at $123,000 after purchasing an additional 508 shares in the last quarter. LPL Financial LLC raised its stake in shares of Cloudflare by 3.4% in the fourth quarter. LPL Financial LLC now owns 122,171 shares of the company's stock worth $13,155,000 after buying an additional 3,989 shares during the period. Crossmark Global Holdings Inc. lifted its position in shares of Cloudflare by 9.6% during the 1st quarter. Crossmark Global Holdings Inc. now owns 2,635 shares of the company's stock valued at $297,000 after buying an additional 230 shares in the last quarter. Amalgamated Bank grew its stake in shares of Cloudflare by 7.0% during the 1st quarter. Amalgamated Bank now owns 21,402 shares of the company's stock valued at $2,412,000 after acquiring an additional 1,400 shares during the period. Finally, Wellington Management Group LLP grew its stake in shares of Cloudflare by 47.0% during the 4th quarter. Wellington Management Group LLP now owns 5,930 shares of the company's stock valued at $639,000 after acquiring an additional 1,896 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Trading Up 3.6%

NET opened at $198.49 on Monday. The stock has a 50-day moving average of $180.09 and a 200 day moving average of $146.43. The company has a current ratio of 3.20, a quick ratio of 3.20 and a debt-to-equity ratio of 0.90. Cloudflare, Inc. has a 12 month low of $69.26 and a 12 month high of $200.76. The firm has a market cap of $68.80 billion, a P/E ratio of -863.00 and a beta of 1.85.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.01). The company had revenue of $479.09 million during the quarter, compared to the consensus estimate of $469.49 million. Cloudflare had a negative net margin of 4.62% and a negative return on equity of 6.31%. Cloudflare's revenue for the quarter was up 26.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.16 earnings per share. As a group, research analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Buying and Selling

In other news, insider Michelle Zatlyn sold 25,641 shares of the firm's stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $190.68, for a total value of $4,889,225.88. Following the completion of the sale, the insider owned 6,390 shares in the company, valued at approximately $1,218,445.20. This trade represents a 80.05% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Douglas James Kramer sold 9,000 shares of Cloudflare stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $196.09, for a total transaction of $1,764,810.00. Following the transaction, the insider directly owned 160,377 shares of the company's stock, valued at approximately $31,448,325.93. This represents a 5.31% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 615,332 shares of company stock valued at $106,709,878 over the last 90 days. 10.89% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several equities analysts have weighed in on NET shares. Oppenheimer reaffirmed an "outperform" rating and set a $200.00 price target (up previously from $165.00) on shares of Cloudflare in a report on Thursday, June 5th. CICC Research upgraded shares of Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 price objective on the stock in a research report on Monday, May 12th. Morgan Stanley reaffirmed an "overweight" rating and issued a $225.00 target price (up previously from $150.00) on shares of Cloudflare in a report on Friday, July 11th. KeyCorp began coverage on Cloudflare in a report on Friday, June 6th. They set an "overweight" rating and a $210.00 price target on the stock. Finally, Needham & Company LLC upped their price objective on Cloudflare from $145.00 to $160.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $159.92.

Cloudflare Company 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.

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