Cloudflare, Inc. $NET Position Reduced by Plato Investment Management Ltd

Key Points

• Plato Investment Management Ltd has reduced its stake in Cloudflare, Inc. by 34.3% during the first quarter, owning 3,082 shares worth $351,000, following the sale of 1,608 shares.
• Cloudflare reported $0.21 EPS for the recent quarter, exceeding estimates and showing a 27.8% year-over-year revenue increase to $512.32 million.
• Analysts have mixed opinions on Cloudflare, with one "Strong Buy," fifteen "Buy," and three "Sell" ratings, as well as a consensus target price of $191.28 for the stock.

Plato Investment Management Ltd cut its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 34.3% in the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 3,082 shares of the company's stock after selling 1,608 shares during the period. Plato Investment Management Ltd's holdings in Cloudflare were worth $351,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of 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 during the period. Nuveen LLC acquired a new stake in Cloudflare in the 1st quarter worth about $88,203,000. American Century Companies Inc. grew its holdings in Cloudflare by 34.5% in the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock valued at $342,287,000 after buying an additional 779,819 shares during the period. Raymond James Financial Inc. increased its stake in shares of Cloudflare by 129.7% during the 1st quarter. Raymond James Financial Inc. now owns 1,097,235 shares of the company's stock valued at $123,647,000 after acquiring an additional 619,526 shares during the last quarter. Finally, Vanguard Group Inc. lifted its holdings in shares of 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 acquiring an additional 538,850 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare Stock Down 1.4%

NYSE NET traded down $3.16 during trading hours on Friday, hitting $221.48. The company had a trading volume of 1,552,402 shares, compared to its average volume of 1,979,402. The firm's 50 day moving average is $201.32 and its 200 day moving average is $162.23. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. Cloudflare, Inc. has a fifty-two week low of $77.60 and a fifty-two week high of $230.10.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.03. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The company had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. During the same quarter in the prior year, the business earned $0.20 earnings per share. The company'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. On average, research analysts anticipate that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Insider Activity

In other news, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $184.58, for a total transaction of $9,669,038.72. Following the sale, the chief executive officer directly owned 381,213 shares of the company's stock, valued at approximately $70,364,295.54. The trade was a 12.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Michelle Zatlyn sold 35,100 shares of the stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $191.71, for a total value of $6,729,021.00. Following the completion of the transaction, the insider directly owned 14,575 shares of the company's stock, valued at $2,794,173.25. This represents a 70.66% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 685,788 shares of company stock valued at $135,600,920 over the last ninety days. 10.89% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on NET shares. Oppenheimer restated an "outperform" rating and issued a $200.00 target price (up from $165.00) on shares of Cloudflare in a report on Thursday, June 5th. JMP Securities lifted their price target on shares of Cloudflare from $180.00 to $225.00 and gave the company a "market outperform" rating in a report on Monday, July 28th. UBS Group upped their price objective on Cloudflare from $145.00 to $200.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. Cantor Fitzgerald lifted their target price on Cloudflare from $162.00 to $199.00 and gave the company a "neutral" rating in a report on Friday, August 1st. Finally, Bank of America boosted their price target on Cloudflare from $235.00 to $240.00 and gave the company a "buy" rating in a research report on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target 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.