Private Advisory Group LLC Purchases 30,406 Shares of Cloudflare, Inc. $NET

Key Points

• Private Advisory Group LLC boosted its Cloudflare stake by 56.9%, buying 30,406 shares to hold 83,886 shares worth $16.54 million, making NET about 1.3% of its portfolio and its 20th largest position.
• Other large institutions (including Norges Bank, Groupama and Vanguard) have also added sizable positions, leaving roughly 82.7% of Cloudflare stock owned by hedge funds and institutional investors.
• Cloudflare recently beat revenue and EPS estimates (Q revenue $614.5M, +33.6% YoY; EPS $0.28 vs $0.27 consensus) but remains unprofitable, and analysts maintain a consensus rating of "Moderate Buy" with an average target of about $233.38.

Private Advisory Group LLC increased its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 56.9% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 83,886 shares of the company's stock after acquiring an additional 30,406 shares during the period. Cloudflare comprises approximately 1.3% of Private Advisory Group LLC's holdings, making the stock its 20th largest position. Private Advisory Group LLC's holdings in Cloudflare were worth $16,538,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Norges Bank purchased a new position in shares of Cloudflare in the second quarter worth $541,462,000. Groupama Asset Managment increased its holdings in Cloudflare by 82.6% in the 3rd quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after buying an additional 950,000 shares in the last quarter. Vanguard Group Inc. increased its holdings in Cloudflare by 2.6% in the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after buying an additional 821,684 shares in the last quarter. Rakuten Investment Management Inc. purchased a new position in Cloudflare in the 3rd quarter worth about $138,660,000. Finally, Massachusetts Financial Services Co. MA raised its position in Cloudflare by 96.3% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,302,893 shares of the company's stock worth $279,588,000 after buying an additional 639,245 shares during the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Cloudflare Stock Performance

Shares of NYSE NET opened at $203.23 on Monday. Cloudflare, Inc. has a 12-month low of $89.42 and a 12-month high of $260.00. The firm has a market capitalization of $71.53 billion, a price-to-earnings ratio of -700.77 and a beta of 1.98. 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 firm has a 50 day moving average of $190.35 and a 200 day moving average of $203.13.

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

Analyst Ratings Changes

NET has been the topic of a number of recent analyst reports. Jefferies Financial Group raised their price target on shares of Cloudflare from $185.00 to $225.00 and gave the company a "hold" rating in a report on Wednesday, February 11th. Piper Sandler boosted their price objective on shares of Cloudflare from $220.00 to $222.00 and gave the company a "neutral" rating in a report on Wednesday, February 11th. DZ Bank upgraded shares of Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 price objective on the stock in a research report on Friday, February 13th. TD Cowen restated a "buy" rating on shares of Cloudflare in a report on Tuesday, January 27th. Finally, Citigroup boosted their target price on shares of Cloudflare from $260.00 to $265.00 and gave the company a "buy" rating in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $233.38.

Insider Buying and Selling

In related news, CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $189.47, for a total transaction of $9,925,196.48. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Michelle Zatlyn sold 35,080 shares of the business's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $187.39, for a total value of $6,573,641.20. Following the sale, the insider directly owned 34,514 shares of the company's stock, valued at $6,467,578.46. This represents a 50.41% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 633,094 shares of company stock valued at $120,791,722. 10.89% of the stock is owned by company insiders.

About Cloudflare

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.

Want to see what other hedge funds are holding NET? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cloudflare, Inc. (NYSE:NET - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.