Peregrine Capital Management LLC Lowers Stock Holdings in Cloudflare, Inc. $NET

Key Points

• Peregrine Capital trimmed its Cloudflare stake by 10.4% in Q4, selling 49,507 shares and ending with 428,331 shares valued at about $84.45M, making Cloudflare its fourth‑largest holding (~2.6% of the firm's portfolio).
• Analyst sentiment is generally positive with an average rating of "Moderate Buy" and an average price target of $232.62, amid mixed recent actions (e.g., Piper Sandler raised to Overweight, KeyCorp downgraded, Citigroup initiated with a Buy).
• Operationally, Cloudflare reported revenue of $614.5M (up 33.6% y/y) and beat estimates but remains unprofitable (negative net margin and ROE); insiders sold about 624,247 shares (~$122.1M) in the last quarter and now own 10.89% of the stock.

Peregrine Capital Management LLC lessened its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 10.4% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 428,331 shares of the company's stock after selling 49,507 shares during the period. Cloudflare makes up approximately 2.6% of Peregrine Capital Management LLC's investment portfolio, making the stock its 4th largest position. Peregrine Capital Management LLC owned about 0.12% of Cloudflare worth $84,445,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently made changes to their positions in NET. Physician Wealth Advisors Inc. lifted its holdings in Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after purchasing an additional 104 shares during the last quarter. Wiser Advisor Group LLC acquired a new position in Cloudflare in the 3rd quarter valued at $26,000. Westside Investment Management Inc. grew its holdings in Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after buying an additional 65 shares in the last quarter. ORG Wealth Partners LLC increased its position in Cloudflare by 101.4% during the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock worth $30,000 after buying an additional 70 shares during the period. Finally, Wexford Capital LP acquired a new stake in shares of Cloudflare during the third quarter worth $30,000. Institutional investors and hedge funds own 82.68% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have issued reports on NET shares. Piper Sandler raised shares of Cloudflare from a "neutral" rating to an "overweight" rating and set a $222.00 price objective for the company in a report on Tuesday, April 14th. Morgan Stanley set a $245.00 price target on shares of Cloudflare in a research report on Wednesday, February 11th. Truist Financial set a $225.00 price target on Cloudflare in a research note on Tuesday, January 20th. KeyCorp downgraded Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. Finally, Citigroup initiated coverage on Cloudflare in a research note on Wednesday, April 15th. They set a "buy" rating on the stock. One analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $232.62.

Cloudflare Price Performance

NYSE NET traded down $6.50 during trading on Thursday, hitting $201.06. 269,790 shares of the company's stock were exchanged, compared to its average volume of 4,638,434. The stock's 50 day moving average price is $198.01 and its two-hundred day moving average price is $200.63. Cloudflare, Inc. has a fifty-two week low of $112.90 and a fifty-two week high of $260.00. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 1.35. The company has a market cap of $70.77 billion, a PE ratio of -694.67 and a beta of 1.87.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.01. The company had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The firm's revenue was up 33.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.19 EPS. Research analysts expect that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insider Activity

In other news, CEO Matthew Prince sold 659 shares of the company's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $223.62, for a total transaction of $147,365.58. Following the completion of the transaction, the chief executive officer directly owned 406,315 shares in the company, valued at approximately $90,860,160.30. This represents a 0.16% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 15,000 shares of the stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $227.05, for a total value of $3,405,750.00. Following the completion of the transaction, the director owned 938,073 shares of the company's stock, valued at $212,989,474.65. The trade was a 1.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 624,247 shares of company stock valued at $122,080,874. 10.89% of the stock is currently owned by insiders.

Cloudflare 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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