Sandler Capital Management Lowers Position in Cloudflare, Inc. $NET

Key Points

• Sandler Capital Management reduced its position in Cloudflare, Inc. by 79.3%, selling 82,775 shares and leaving it with 21,593 shares valued at approximately $2.43 million.
• Insiders have significantly sold off their shares recently, with key executives offloading over 687,000 shares valued at around $130.97 million in the last ninety days.
• Market analysts have mixed views on Cloudflare's stock, with target prices ranging from $140 to $235, and a consensus rating of "Moderate Buy."

Sandler Capital Management lessened its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 79.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 21,593 shares of the company's stock after selling 82,775 shares during the period. Sandler Capital Management's holdings in Cloudflare were worth $2,433,000 at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Mather Group LLC. lifted its holdings in shares of Cloudflare by 1,188.2% in the first quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after purchasing an additional 202 shares in the last quarter. NBC Securities Inc. bought a new stake in shares of Cloudflare in the first quarter valued at about $27,000. GPS Wealth Strategies Group LLC raised its holdings in Cloudflare by 213.4% during the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock worth $29,000 after acquiring an additional 175 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its holdings in Cloudflare by 115.4% during the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock worth $30,000 after acquiring an additional 142 shares in the last quarter. Finally, Gordian Capital Singapore Pte Ltd bought a new stake in Cloudflare during the fourth quarter worth about $43,000. 82.68% of the stock is currently owned by institutional investors.

Insider Activity at Cloudflare

In other Cloudflare news, insider Michelle Zatlyn sold 25,641 shares of Cloudflare stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $195.61, for a total transaction of $5,015,636.01. Following the transaction, the insider directly owned 14,575 shares of the company's stock, valued at approximately $2,851,015.75. The trade was a 63.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Matthew Prince sold 536 shares of Cloudflare stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $194.84, for a total value of $104,434.24. Following the transaction, the chief executive officer directly owned 20,111 shares in the company, valued at $3,918,427.24. The trade was a 2.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 687,029 shares of company stock worth $130,970,115 over the last 90 days. 10.89% of the stock is currently owned by company insiders.

Cloudflare Price Performance

Cloudflare stock traded up $0.63 during mid-day trading on Tuesday, reaching $218.55. 1,670,393 shares of the company were exchanged, compared to its average volume of 2,033,303. The company has a fifty day simple moving average of $199.30 and a 200-day simple moving average of $160.46. Cloudflare, Inc. has a 12 month low of $74.88 and a 12 month high of $220.99. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14. The firm has a market cap of $76.16 billion, a PE ratio of -642.79 and a beta of 1.95.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.21 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.03. The firm had revenue of $512.32 million for the quarter, compared to analyst estimates of $501.58 million. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The company's revenue was up 27.8% on a year-over-year basis. During the same quarter last year, the company earned $0.20 EPS. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, equities research analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts recently issued reports on NET shares. Royal Bank Of Canada upped their target price on Cloudflare from $210.00 to $228.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. UBS Group upped their target price on Cloudflare from $145.00 to $200.00 and gave the stock a "neutral" rating in a report on Thursday, July 24th. Guggenheim upped their price objective on Cloudflare from $70.00 to $111.00 and gave the company a "sell" rating in a research note on Friday, August 1st. Robert W. Baird upped their price objective on Cloudflare from $148.00 to $175.00 and gave the company a "neutral" rating in a research note on Friday, July 25th. Finally, Citigroup upped their price objective on Cloudflare from $240.00 to $255.00 and gave the company a "buy" rating in a research note on Monday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Cloudflare presently has a consensus rating of "Moderate Buy" and an average target price of $191.28.

Cloudflare Company Profile

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.