QRG Capital Management Inc. Raises Stake in Cloudflare, Inc. $NET

QRG Capital Management Inc. increased its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 11.9% in the fourth quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 58,109 shares of the company's stock after purchasing an additional 6,201 shares during the quarter. QRG Capital Management Inc.'s holdings in Cloudflare were worth $11,456,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Cloudflare by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company's stock valued at $6,389,167,000 after buying an additional 90,397 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Cloudflare by 1.3% during the 3rd quarter. Invesco Ltd. now owns 3,964,733 shares of the company's stock worth $850,792,000 after acquiring an additional 49,485 shares in the last quarter. Groupama Asset Managment grew its holdings in shares of 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 acquiring an additional 950,000 shares during the period. Northern Trust Corp increased its stake in Cloudflare by 1.2% in the 3rd quarter. Northern Trust Corp now owns 1,909,120 shares of the company's stock valued at $409,678,000 after purchasing an additional 21,715 shares in the last quarter. Finally, Jennison Associates LLC increased its stake in Cloudflare by 802.6% in the 4th quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock valued at $367,411,000 after purchasing an additional 1,657,144 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company's stock.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Forrester named Cloudflare a Leader in its Edge Development Platforms report — this third‑party recognition supports Cloudflare’s positioning in edge and developer tooling, helping justify growth/market‑share expectations. Read More.
• Positive Sentiment: Cloudflare is pushing AI adoption — announcing automated onboarding for AI agents and startup credits (up to $100k) to capture AI‑native apps and developer adoption, which could boost new customer acquisition and revenue over time. Read More.
• Positive Sentiment: High‑profile media endorsement: Jim Cramer called Cloudflare a “terrific cyber defender” on Mad Money ahead of earnings, likely drawing retail interest and short‑term buying momentum. Read More.
• Neutral Sentiment: Analyst coverage remains constructive overall (consensus/average target ≈ $231–$232), but views are mixed — some trims and some upgrades leave upside modest vs. current levels. That keeps buy‑side interest but limits conviction for large fresh upgrades. Read More.
• Neutral Sentiment: Q1 earnings previews flag strong AI and enterprise demand tailwinds but warn macro pressures and potential deal delays — creating a binary earnings reaction: good execution likely extends the rally, while any softness could prompt profit‑taking. Read More.
• Negative Sentiment: Valuation concerns and downgrades: Seeking Alpha downgraded NET to Hold, arguing much of the growth is priced in — that narrative can weigh on value‑oriented funds and temper the rally. Read More.
• Negative Sentiment: Insider selling: Directors Carl Ledbetter (15,000 shares at ~$238 on May 5, via a 10b5‑1 plan), John Graham‑Cumming (2,520 shares at ~$221.58 on May 4, 10b5‑1), and smaller sales from Mark Hawkins were reported — these are largely pre‑arranged and common at the current multiple, but some traders interpret them as modest caution. Read More. Read More. Read More.

Cloudflare Stock Performance

Shares of NYSE NET opened at $244.46 on Wednesday. The company has a 50-day simple moving average of $201.24 and a 200-day simple moving average of $200.23. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98. The company has a market cap of $86.04 billion, a PE ratio of -842.92 and a beta of 1.67. Cloudflare, Inc. has a 12 month low of $120.46 and a 12 month high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.01. The firm 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%. Cloudflare's revenue was up 33.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.19 earnings per share. On average, equities analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling at Cloudflare

In related news, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction dated Wednesday, April 22nd. The stock was sold at an average price of $209.15, for a total transaction of $5,362,815.15. Following the transaction, the insider directly owned 34,514 shares in the company, valued at approximately $7,218,603.10. This represents a 42.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 15,000 shares of the firm's stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $238.12, for a total value of $3,571,800.00. Following the completion of the sale, the director directly owned 908,073 shares in the company, valued at approximately $216,230,342.76. The trade was a 1.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 638,766 shares of company stock valued at $125,757,221. 10.89% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have weighed in on NET. Wells Fargo & Company upped their target price on Cloudflare from $265.00 to $270.00 and gave the company an "overweight" rating in a report on Wednesday, February 11th. TD Cowen reiterated a "buy" rating on shares of Cloudflare in a research report on Tuesday, January 27th. Morgan Stanley set a $245.00 price objective on shares of Cloudflare in a research note on Wednesday, February 11th. Needham & Company LLC cut their target price on shares of Cloudflare from $285.00 to $250.00 and set a "buy" rating for the company in a research report on Wednesday, February 11th. Finally, UBS Group reaffirmed a "neutral" rating and issued a $220.00 price target on shares of Cloudflare in a report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $232.62.

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.

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.