Norges Bank Acquires New Holdings in Cloudflare, Inc. $NET

Key Points

• Norges Bank disclosed a new stake in Cloudflare during the fourth quarter, buying 3.64 million shares worth about $718.3 million. The position amounted to roughly 1.04% of the company.
• Cloudflare continues to attract major institutional interest, with hedge funds and other investors increasing or initiating positions; overall, 82.68% of the stock is held by institutional investors.
• On the fundamentals side, Cloudflare recently beat earnings expectations, reporting $0.25 EPS versus the $0.23 estimate and revenue of $639.76 million, up 33.5% year over year. The stock was trading near $241.82, and analysts currently rate it Moderate Buy with a consensus target of $236.68.

Norges Bank acquired a new stake in Cloudflare, Inc. (NYSE:NET - Free Report) during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm acquired 3,643,501 shares of the company's stock, valued at approximately $718,316,000. Norges Bank owned about 1.04% of Cloudflare as of its most recent SEC filing.

Several other hedge funds have also recently bought and sold shares of the company. Eurizon Capital SGR S.p.A. bought a new stake in Cloudflare in the 4th quarter valued at about $10,821,000. National Pension Service lifted its position in Cloudflare by 53.2% in the 4th quarter. National Pension Service now owns 948,003 shares of the company's stock valued at $186,899,000 after purchasing an additional 329,341 shares during the last quarter. SBI Okasan Asset Management Co.Ltd. bought a new stake in Cloudflare in the 4th quarter valued at about $1,327,000. Jupiter Asset Management Ltd. lifted its position in Cloudflare by 1,984.7% in the 4th quarter. Jupiter Asset Management Ltd. now owns 197,710 shares of the company's stock valued at $38,979,000 after purchasing an additional 188,226 shares during the last quarter. Finally, Intech Investment Management LLC lifted its position in Cloudflare by 30.7% in the 4th quarter. Intech Investment Management LLC now owns 13,938 shares of the company's stock valued at $2,748,000 after purchasing an additional 3,271 shares during the last quarter. 82.68% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several analysts recently weighed in on NET shares. Robert W. Baird set a $260.00 price objective on shares of Cloudflare and gave the company an "outperform" rating in a research report on Wednesday, February 11th. BTIG Research restated a "buy" rating and set a $243.00 price target on shares of Cloudflare in a research report on Friday, May 8th. Morgan Stanley set a $245.00 price target on shares of Cloudflare in a research report on Wednesday, February 11th. Jefferies Financial Group initiated coverage on shares of Cloudflare in a research report on Wednesday, April 15th. They set a "buy" rating on the stock. Finally, Needham & Company LLC dropped their price target on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating on the stock in a research report on Wednesday, February 11th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $236.68.

Cloudflare Stock Down 0.0%

NET stock opened at $241.82 on Monday. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $260.00. The company has a market capitalization of $85.48 billion, a price-to-earnings ratio of -967.27 and a beta of 1.70. The firm's 50-day moving average is $208.57 and its two-hundred day moving average is $198.67. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The company had revenue of $639.76 million for the quarter, compared to the consensus estimate of $620.83 million. During the same period in the previous year, the firm earned $0.16 EPS. Cloudflare'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.

Insider Activity at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $209.08, for a total value of $10,952,446.72. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Michelle Zatlyn sold 35,080 shares of Cloudflare stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the transaction, the insider directly owned 47,425 shares in the company, valued at $10,148,001.50. This represents a 42.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 585,862 shares of company stock worth $121,988,011 in the last ninety days. Corporate insiders own 10.89% of the company's stock.

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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