Optas LLC Trims Stock Holdings in Cloudflare, Inc. $NET

Key Points

• Optas LLC cut its Cloudflare stake sharply, reducing holdings by 48.7% in the first quarter and ending with 7,853 shares valued at about $1.62 million.
• Insider selling has been significant, with CEO Matthew Prince and insider Michelle Zatlyn both selling shares, and insiders collectively offloading 566,245 shares worth $121.3 million over the last 90 days.
• Analysts remain broadly positive on Cloudflare, with a consensus rating of “Moderate Buy” and an average price target of $241.35, though the stock recently traded down 1.7% to $242.14.

Optas LLC decreased its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 48.7% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 7,853 shares of the company's stock after selling 7,445 shares during the quarter. Optas LLC's holdings in Cloudflare were worth $1,620,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also added to or reduced their stakes in NET. Fjarde AP Fonden Fourth Swedish National Pension Fund boosted its holdings in shares of Cloudflare by 65.6% during the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 108,878 shares of the company's stock valued at $22,466,000 after buying an additional 43,150 shares in the last quarter. Elevation Point Wealth Partners LLC increased its stake in shares of Cloudflare by 2,074.9% in the 1st quarter. Elevation Point Wealth Partners LLC now owns 26,990 shares of the company's stock worth $5,569,000 after acquiring an additional 25,749 shares in the last quarter. Sound Income Strategies LLC lifted its position in Cloudflare by 15.7% during the 1st quarter. Sound Income Strategies LLC now owns 419 shares of the company's stock valued at $86,000 after acquiring an additional 57 shares during the period. Jamison Private Wealth Management Inc. lifted its position in Cloudflare by 2.6% during the 1st quarter. Jamison Private Wealth Management Inc. now owns 2,064 shares of the company's stock valued at $426,000 after acquiring an additional 52 shares during the period. Finally, Keybank National Association OH lifted its position in Cloudflare by 2.9% during the 1st quarter. Keybank National Association OH now owns 11,154 shares of the company's stock valued at $2,302,000 after acquiring an additional 316 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Insider Activity at Cloudflare

In other news, insider Michelle Zatlyn sold 35,080 shares of the business's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total value of $7,506,418.40. Following the completion of the transaction, the insider owned 47,425 shares in the company, valued at $10,148,001.50. The trade was a 42.52% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction on Monday, April 6th. The shares were sold at an average price of $210.02, for a total value of $11,001,687.68. 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 566,245 shares of company stock worth $121,343,833 over the last ninety days. 10.66% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Piper Sandler restated an "overweight" rating on shares of Cloudflare in a report on Wednesday, June 10th. UBS Group boosted their price target on Cloudflare from $220.00 to $250.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 10th. Susquehanna upped their price target on Cloudflare from $190.00 to $200.00 and gave the stock a "neutral" rating in a research note on Monday, May 11th. Zacks Research raised Cloudflare from a "strong sell" rating to a "hold" rating in a research report on Friday, March 13th. Finally, BTIG Research raised their price objective on Cloudflare from $243.00 to $269.00 and gave the company a "buy" rating in a research report on Wednesday, June 10th. Twenty-one analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $241.35.

Cloudflare Stock Down 1.7%

Shares of Cloudflare stock opened at $242.14 on Friday. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The stock has a market capitalization of $85.59 billion, a PE ratio of -968.56, a price-to-earnings-growth ratio of 248.07 and a beta of 1.67. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $276.82. The company has a 50-day simple moving average of $225.40 and a two-hundred day simple moving average of $204.62.

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 5.65%. The firm had revenue of $639.75 million for the quarter, compared to the consensus estimate of $620.83 million. During the same quarter in the prior year, the firm posted $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. On average, analysts anticipate that Cloudflare, Inc. will post 0.02 EPS for the current fiscal year.

Cloudflare Company 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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