Parnassus Investments LLC Cuts Stock Position in Cloudflare, Inc. $NET

Key Points

• Parnassus Investments LLC reduced its stake in Cloudflare, Inc. by 2.2%, owning 134,147 shares valued at $15.1 million after selling 2,996 shares.
• In Q1, several other institutional investors significantly increased their positions in Cloudflare, with Fred Alger Management’s stake rising by 856.3% and American Century Companies growing its position by 34.5%.
• Cloudflare posted an earnings per share of $0.21 for the last quarter, surpassing estimates, and reported revenue growth of 27.8% year-over-year, totaling $512.32 million.

Parnassus Investments LLC lowered its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 2.2% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 134,147 shares of the company's stock after selling 2,996 shares during the period. Parnassus Investments LLC's holdings in Cloudflare were worth $15,117,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of NET. Fred Alger Management LLC grew its position in shares of Cloudflare by 856.3% in the 4th quarter. Fred Alger Management LLC now owns 934,286 shares of the company's stock worth $100,604,000 after buying an additional 836,591 shares during the last quarter. Nuveen LLC purchased a new stake in Cloudflare during the 1st quarter worth approximately $88,203,000. American Century Companies Inc. grew its position in Cloudflare by 34.5% during the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after purchasing an additional 779,819 shares during the last quarter. Raymond James Financial Inc. grew its position in Cloudflare by 129.7% during the 1st quarter. Raymond James Financial Inc. now owns 1,097,235 shares of the company's stock worth $123,647,000 after purchasing an additional 619,526 shares during the last quarter. Finally, Vanguard Group Inc. grew its position in Cloudflare by 1.8% during the 1st quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock worth $3,475,011,000 after purchasing an additional 538,850 shares during the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Performance

Shares of NYSE NET opened at $208.96 on Friday. The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. Cloudflare, Inc. has a 12 month low of $74.88 and a 12 month high of $219.00. The company has a 50 day simple moving average of $196.16 and a two-hundred day simple moving average of $158.28. The stock has a market cap of $72.82 billion, a price-to-earnings ratio of -614.60 and a beta of 1.84.

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, beating the consensus estimate of $0.18 by $0.03. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The firm had revenue of $512.32 million during the quarter, compared to analysts' expectations of $501.58 million. During the same period in the previous year, the business posted $0.20 EPS. The business's revenue was up 27.8% compared to the same quarter last year. 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, analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity

In related news, CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction on Friday, June 13th. The shares were sold at an average price of $171.25, for a total value of $8,970,760.00. Following the completion of the transaction, the chief executive officer directly owned 381,213 shares in the company, valued at $65,282,726.25. The trade was a 12.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Thomas J. Seifert sold 34,270 shares of the business's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $200.17, for a total transaction of $6,859,825.90. Following the completion of the transaction, the chief financial officer owned 241,550 shares of the company's stock, valued at approximately $48,351,063.50. This represents a 12.42% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 731,705 shares of company stock valued at $138,296,322. 10.89% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Royal Bank Of Canada boosted their target price on shares of Cloudflare from $210.00 to $228.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Citigroup boosted their target price on shares of Cloudflare from $240.00 to $255.00 and gave the stock a "buy" rating in a research report on Monday, August 18th. Bank of America boosted their target price on shares of Cloudflare from $235.00 to $240.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Robert W. Baird boosted their target price on shares of Cloudflare from $148.00 to $175.00 and gave the stock a "neutral" rating in a research report on Friday, July 25th. Finally, Piper Sandler lifted their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, Cloudflare presently has a consensus rating of "Moderate Buy" and an average target price of $191.28.

Cloudflare 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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