Pallas Capital Advisors LLC Buys 1,178 Shares of Cloudflare, Inc. $NET

Key Points

• Pallas Capital Advisors LLC increased its holdings in Cloudflare, Inc. (NYSE:NET) by 40.3% in Q2, now owning 4,104 shares valued at approximately $804,000.
• Insider activity shows CEO Matthew Prince sold 52,384 shares for around $9.67 million, reducing his ownership by 12.08%.
• Cloudflare's stock opened at $226.38 with a fifty-two week high of $230.10, following a quarterly revenue increase of 27.8% year-over-year.

Pallas Capital Advisors LLC lifted its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 40.3% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 4,104 shares of the company's stock after purchasing an additional 1,178 shares during the period. Pallas Capital Advisors LLC's holdings in Cloudflare were worth $804,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of NET. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Cloudflare by 33.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company's stock valued at $352,610,000 after purchasing an additional 786,063 shares in the last quarter. Nuveen LLC bought a new stake in Cloudflare in the first quarter valued at approximately $88,203,000. American Century Companies Inc. increased its stake in Cloudflare by 34.5% in the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock valued at $342,287,000 after purchasing an additional 779,819 shares in the last quarter. Raymond James Financial Inc. increased its stake in Cloudflare by 129.7% in the first quarter. Raymond James Financial Inc. now owns 1,097,235 shares of the company's stock valued at $123,647,000 after purchasing an additional 619,526 shares in the last quarter. Finally, Vanguard Group Inc. increased its stake in Cloudflare by 1.8% in the first quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock valued at $3,475,011,000 after purchasing an additional 538,850 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Cloudflare

In other news, insider Michelle Zatlyn sold 25,641 shares of the firm's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $195.61, for a total transaction of $5,015,636.01. Following the completion of the sale, the insider owned 14,575 shares in the company, valued at approximately $2,851,015.75. This trade represents a 63.76% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John Graham-Cumming sold 10,215 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $206.32, for a total transaction of $2,107,558.80. Following the sale, the director owned 495,191 shares of the company's stock, valued at approximately $102,167,807.12. This represents a 2.02% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 665,738 shares of company stock worth $131,968,542 in the last quarter. 10.89% of the stock is owned by corporate insiders.

Cloudflare Stock Performance

Shares of NYSE NET traded up $2.81 during mid-day trading on Friday, reaching $226.38. 4,004,051 shares of the company were exchanged, compared to its average volume of 2,061,458. The company's 50-day simple moving average is $204.65 and its 200-day simple moving average is $164.83. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $78.89 billion, a P/E ratio of -665.82 and a beta of 1.95. Cloudflare, Inc. has a twelve month low of $77.80 and a twelve month high of $230.10.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.18 by $0.03. The company had revenue of $512.32 million during the quarter, compared to analysts' expectations of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. Cloudflare's quarterly revenue was up 27.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.20 EPS. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several brokerages have commented on NET. Oppenheimer reaffirmed an "outperform" rating and issued a $200.00 target price (up previously from $165.00) on shares of Cloudflare in a research note on Thursday, June 5th. Piper Sandler upped their target price on shares of Cloudflare from $151.00 to $224.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Morgan Stanley upped their target price on shares of Cloudflare from $225.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. KeyCorp increased their price objective on shares of Cloudflare from $210.00 to $235.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Finally, Cantor Fitzgerald increased their price objective on shares of Cloudflare from $162.00 to $199.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat, Cloudflare presently has an average rating of "Moderate Buy" and a consensus price target of $191.28.

About Cloudflare

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.