Redhawk Wealth Advisors Inc. Purchases New Position in Cloudflare, Inc. $NET

Key Points

• Redhawk Wealth Advisors acquired 7,161 Cloudflare shares worth approximately $1.76 million, while institutional investors collectively own 82.68% of the company.
• Cloudflare reported quarterly revenue of $696.1 million, up 35.9% year over year, and adjusted EPS of $0.29, exceeding analyst expectations of $0.27. Analysts maintain a “Moderate Buy” consensus with an average price target of $320.19.
• Despite strong growth and expanding AI and government opportunities, investors face risks from substantial insider selling, a proposed $2.175 billion convertible-note offering and Cloudflare’s elevated valuation.

Redhawk Wealth Advisors Inc. acquired a new position in Cloudflare, Inc. (NYSE:NET - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor acquired 7,161 shares of the company's stock, valued at approximately $1,756,000.

Several other institutional investors also recently bought and sold shares of the company. Wiser Advisor Group LLC purchased a new stake in shares of Cloudflare in the 3rd quarter worth $26,000. HM Payson & Co. purchased a new position in shares of Cloudflare during the fourth quarter valued at $25,000. CX Institutional increased its stake in shares of Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after buying an additional 44 shares during the period. Wexford Capital LP bought a new stake in shares of Cloudflare in the third quarter valued at about $30,000. Finally, Brown Brothers Harriman & Co. raised its holdings in shares of Cloudflare by 55.4% in the third quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after acquiring an additional 56 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Cloudflare

In other news, insider Michelle Zatlyn sold 35,080 shares of the company's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the transaction, the insider directly owned 47,425 shares of the company's stock, valued at approximately $10,148,001.50. This represents a 42.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the firm's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total value of $13,057,795.98. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 749,532 shares of company stock valued at $183,882,628. Corporate insiders own 10.66% of the company's stock.

Cloudflare Stock Up 3.2%

NYSE:NET opened at $309.98 on Tuesday. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $324.73. The stock has a market capitalization of $109.57 billion, a P/E ratio of -534.45, a P/E/G ratio of 207.29 and a beta of 1.65. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The company's 50-day simple moving average is $257.82 and its 200-day simple moving average is $220.02.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same quarter in the previous year, the business posted $0.21 EPS. Cloudflare's revenue was up 35.9% on a year-over-year basis. On average, equities analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

NET has been the subject of a number of research reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cloudflare in a research note on Friday, July 17th. Susquehanna raised their target price on shares of Cloudflare from $200.00 to $300.00 and gave the company a "neutral" rating in a research report on Monday. Truist Financial boosted their price target on shares of Cloudflare from $300.00 to $350.00 and gave the company a "buy" rating in a report on Friday. Wells Fargo & Company upped their price target on shares of Cloudflare from $300.00 to $380.00 and gave the stock an "overweight" rating in a research report on Friday. Finally, KeyCorp increased their price objective on shares of Cloudflare from $300.00 to $375.00 and gave the company an "overweight" rating in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Cloudflare has an average rating of "Moderate Buy" and a consensus price target of $320.19.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong growth and raised outlook: Cloudflare reported second-quarter revenue of $696.1 million, up 35.9% year over year, and adjusted EPS of $0.29 versus the $0.27 consensus estimate. Management also raised its third-quarter and full-year 2026 revenue outlook, supporting the case for continued growth. Susquehanna hikes price target on Cloudflare after Q2 results
• Positive Sentiment: AI opportunity is attracting investors: Cloudflare is positioning its network, developer platform and security tools as infrastructure for AI agents. New offerings include Cloudflare OS, an identity-aware AI Gateway, AI governance tools, an AEO Visibility Dashboard and Cloudflare Wallets. The strategy has prompted several analysts to raise their price targets, while Ark Invest’s Cathie Wood argued that Wall Street may be underestimating the company’s AI potential. Cloudflare expands its AI agent platform
• Positive Sentiment: Government-contract opportunity expanded: Cloudflare for Government received FedRAMP High certification and GovRAMP Moderate authorization. These approvals could improve its ability to sell security, performance, AI and developer services to federal, state and local governments and other highly regulated organizations. Cloudflare achieves FedRAMP High authorization
• Neutral Sentiment: Speculative SpaceX connection: Elon Musk reportedly reviewed a Cloudflare proposal addressing AI-related traffic challenges for Starlink, but no partnership or commercial agreement has been announced. Potential SpaceX-Cloudflare partnership
• Negative Sentiment: Financing and insider-sale concerns: Cloudflare proposed a $2.175 billion offering of convertible senior notes due 2031, increasing financial obligations and potentially creating future share dilution. Separately, the CFO sold approximately $16.5 million of stock. Susquehanna raised its target to $300 but retained a neutral rating, implying limited upside at the prevailing valuation. Cloudflare announces proposed convertible-note offering

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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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.

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