Robeco Schweiz AG Reduces Stock Position in Cloudflare, Inc. $NET

Key Points

• Robeco Schweiz AG cut its stake in Cloudflare by 81.3% in Q4, selling 25,600 shares and leaving it with 5,900 shares worth about $1.16 million.
• Cloudflare beat Q1 estimates with $639.8M in revenue (up 33.5% y/y) and $0.25 EPS, and issued FY‑2026 EPS guidance of 1.190–1.200 and Q2 EPS of 0.27.
• Nonetheless, the company announced ~1,100 layoffs (~20% of staff) and heavy insider selling (638,766 shares worth ~$125.8M in three months), which—alongside mixed analyst views and high valuation—triggered a sharp after‑hours selloff.

Robeco Schweiz AG lowered its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 81.3% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 5,900 shares of the company's stock after selling 25,600 shares during the period. Robeco Schweiz AG's holdings in Cloudflare were worth $1,163,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. Rakuten Investment Management Inc. purchased a new stake in shares of Cloudflare in the 3rd quarter worth about $138,660,000. Allianz Asset Management GmbH lifted its position 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 worth $13,987,000 after purchasing an additional 49,749 shares during the period. National Pension Service lifted its position in shares of Cloudflare by 1.0% in the 3rd quarter. National Pension Service now owns 618,662 shares of the company's stock worth $132,759,000 after purchasing an additional 5,939 shares during the period. Massachusetts Financial Services Co. MA lifted its position in shares of Cloudflare by 25.8% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock worth $323,259,000 after purchasing an additional 336,768 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its position in shares of Cloudflare by 20.1% in the 3rd quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 170,186 shares of the company's stock worth $36,520,000 after purchasing an additional 28,495 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the stock. Barclays raised their target price on shares of Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. KeyCorp cut shares of Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. TD Cowen reaffirmed a "buy" rating on shares of Cloudflare in a research report on Tuesday, January 27th. Mizuho dropped their target price on shares of Cloudflare from $255.00 to $235.00 and set an "outperform" rating for the company in a research report on Tuesday, April 14th. Finally, Guggenheim increased their price target on shares of Cloudflare from $117.00 to $140.00 and gave the stock a "sell" rating in a research note on Wednesday, February 11th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $232.62.

Cloudflare Stock Up 3.4%

Shares of Cloudflare stock opened at $257.05 on Friday. 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 50-day moving average of $204.88 and a 200 day moving average of $200.83. The firm has a market cap of $90.48 billion, a price-to-earnings ratio of -886.35 and a beta of 1.67. Cloudflare, Inc. has a 1 year low of $121.46 and a 1 year high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. Cloudflare's quarterly revenue was up 33.5% compared to the same quarter last year. During the same period last year, the business earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, sell-side analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

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 firm's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $187.39, for a total transaction of $6,573,641.20. Following the sale, the insider owned 34,514 shares of the company's stock, valued at approximately $6,467,578.46. This represents 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.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q1 beat: Cloudflare reported revenue up ~33% y/y (~$639.8M) and beat consensus on non‑GAAP EPS, showing continued top‑line growth that supports the company’s AI/edge strategy. Cloudflare Announces First Quarter 2026 Financial Results
• Positive Sentiment: Upside to profit guidance: management issued Q2 and fiscal‑year EPS ranges that are above Street EPS consensus, which could imply meaningful near‑term margin improvement if execution holds. Company Press Release / Slide Deck
• Positive Sentiment: Market/industry recognition and ecosystem moves: Cloudflare was named a Leader in Forrester’s edge report and is partnering with Wiz on AI app security — items that support the long‑term thesis around edge + AI infrastructure. Forrester / Market Note Wiz Partnership
• Neutral Sentiment: Analyst views remain mixed: several shops retain buy/hold ratings with average targets roughly near current levels, leaving limited immediate catalyst from upgrades. Barclays Reaffirmation
• Neutral Sentiment: Insider sales were reported (pre‑arranged plans), which some traders note but that activity appears routine rather than a clear red flag. Insider Trades
• Negative Sentiment: Major restructuring: Cloudflare announced layoffs of ~1,100 people (~20% of workforce) to reposition for an “agentic AI era,” raising execution and execution‑risk concerns tied to the transition. Business Insider Layoff Memo WSJ Coverage
• Negative Sentiment: Revenue guide and near‑term outlook: Q2 revenue guidance was essentially flat/slightly below consensus (guidance ~ $664–665M vs. estimates ~ $665M), which, combined with the layoffs, triggered investor concern about demand timing and growth sustainability. Reuters: Guidance & Cuts MSN: Guidance Reaction
• Negative Sentiment: Market reaction: the announcement prompted a sharp after‑hours selloff as investors digested the combination of restructuring, near‑term guidance and high valuation; commentators note momentum/valuation left the name vulnerable even after a good quarter. CNBC: After‑hours Selloff Earnings Discussion / Video

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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