Premier Fund Managers Ltd Cuts Holdings in Cloudflare, Inc. $NET

Key Points

• Premier Fund Managers reduced its Cloudflare stake by 33.2% in Q4, selling 14,998 shares to hold 30,202 shares valued at about $6.03 million at quarter-end.
• Company insiders have been selling heavily — CFO Thomas Seifert and co‑founder Michelle Zatlyn sold large blocks, and insiders disposed of 638,766 shares (~$125.8M) in the past three months; insiders now own 10.89% of the stock.
• Cloudflare beat estimates with Q revenue of $614.51M (+33.6% YoY) and EPS $0.28 (vs. $0.27 est.), but still shows a negative net margin (−4.72%) and ROE (−7.24%); consensus rating is a "Moderate Buy" with a $232.62 target.

Premier Fund Managers Ltd lessened its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 33.2% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 30,202 shares of the company's stock after selling 14,998 shares during the period. Premier Fund Managers Ltd's holdings in Cloudflare were worth $6,029,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of NET. Allianz Asset Management GmbH boosted its stake in shares of Cloudflare by 322.4% in the 3rd quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock valued at $13,987,000 after purchasing an additional 49,749 shares in the last quarter. Rakuten Investment Management Inc. purchased a new stake in Cloudflare during the 3rd quarter valued at $138,660,000. National Pension Service boosted its position in Cloudflare by 1.0% during the 3rd quarter. National Pension Service now owns 618,662 shares of the company's stock valued at $132,759,000 after buying an additional 5,939 shares during the period. Massachusetts Financial Services Co. MA boosted its position in Cloudflare by 25.8% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after buying an additional 336,768 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its position in Cloudflare by 20.1% during the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 170,186 shares of the company's stock valued at $36,520,000 after buying an additional 28,495 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Up 1.7%

Shares of NYSE NET opened at $248.69 on Thursday. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 1.35. Cloudflare, Inc. has a 12 month low of $120.55 and a 12 month high of $260.00. The firm has a market capitalization of $87.53 billion, a PE ratio of -857.53 and a beta of 1.67. The firm has a fifty day simple moving average of $203.01 and a two-hundred day simple moving average of $200.50.

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

Wall Street Analysts Forecast Growth

NET has been the subject of several analyst reports. Wells Fargo & Company increased their price target on shares of Cloudflare from $265.00 to $270.00 and gave the company an "overweight" rating in a research report on Wednesday, February 11th. Wolfe Research reissued a "peer perform" rating on shares of Cloudflare in a research report on Monday, January 26th. DZ Bank raised shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price target for the company in a research report on Friday, February 13th. Robert W. Baird set a $260.00 price objective on shares of Cloudflare and gave the stock an "outperform" rating in a report on Wednesday, February 11th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Cloudflare in a report on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $232.62.

Insider Buying and Selling

In related news, CFO Thomas J. Seifert sold 41,557 shares of the stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $185.04, for a total value of $7,689,707.28. Following the completion of the transaction, the chief financial officer directly owned 85,452 shares in the company, valued at $15,812,038.08. This trade represents a 32.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Michelle Zatlyn sold 35,080 shares of the stock in a transaction dated Thursday, February 19th. The stock was sold at an average price of $187.39, for a total transaction of $6,573,641.20. Following the completion of the transaction, the insider owned 34,514 shares of the company's stock, valued at approximately $6,467,578.46. The trade was a 50.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 638,766 shares of company stock worth $125,757,221 in the last three months. 10.89% of the stock is owned by corporate 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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