Schroder Investment Management Group Sells 33,738 Shares of Cloudflare, Inc. $NET

Key Points

• Schroder Investment Management cut its stake in Cloudflare by 16.7% in Q3, selling 33,738 shares and ending the quarter with 168,306 shares worth about $36.12 million.
• Significant insider selling has occurred recently: CEO Matthew Prince sold 52,384 shares (~$9.10M) and Michelle Zatlyn sold 25,641 shares (~$4.86M); insiders disposed of 526,210 shares (~$97.3M) over the last three months and now own 10.89% of the company.
• Analysts maintain a Moderate Buy consensus with an average price target of $230.70, and Cloudflare recently beat quarterly revenue and EPS estimates (revenue $614.5M, +33.6%; EPS $0.28 vs. $0.27) despite negative net margin and ROE.

Schroder Investment Management Group lowered its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 16.7% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 168,306 shares of the company's stock after selling 33,738 shares during the period. Schroder Investment Management Group's holdings in Cloudflare were worth $36,117,000 at the end of the most recent quarter.

Other institutional investors have also recently bought and sold shares of the company. Rakuten Investment Management Inc. acquired a new stake in shares of Cloudflare in the 3rd quarter valued at approximately $138,660,000. Allianz Asset Management GmbH grew its holdings in Cloudflare by 322.4% during the third quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock valued at $13,987,000 after purchasing an additional 49,749 shares during the period. National Pension Service grew its holdings in Cloudflare by 1.0% during the third quarter. National Pension Service now owns 618,662 shares of the company's stock valued at $132,759,000 after purchasing an additional 5,939 shares during the period. Westfield Capital Management Co. LP bought a new stake in Cloudflare in the second quarter valued at approximately $87,868,000. Finally, Swedbank AB increased its stake in Cloudflare by 27.7% in the third quarter. Swedbank AB now owns 43,878 shares of the company's stock valued at $9,416,000 after purchasing an additional 9,527 shares in the last quarter. Institutional investors own 82.68% of the company's stock.

Insider Transactions at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $173.78, for a total value of $9,103,291.52. Following the sale, the chief executive officer directly owned 22,911 shares in the company, valued at $3,981,473.58. The trade was a 69.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Michelle Zatlyn sold 25,641 shares of the company's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $189.50, for a total value of $4,858,969.50. Following the transaction, the insider directly owned 34,514 shares of the company's stock, valued at $6,540,403. This represents a 42.62% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 526,210 shares of company stock worth $97,324,213. 10.89% of the stock is currently owned by company insiders.

Cloudflare Stock Up 2.7%

Shares of NET stock opened at $213.01 on Thursday. Cloudflare, Inc. has a 12-month low of $89.42 and a 12-month high of $260.00. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. The firm has a fifty day moving average of $184.79 and a 200-day moving average of $202.81. The company has a market capitalization of $74.61 billion, a price-to-earnings ratio of -734.50 and a beta of 1.98.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings data on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.27 by $0.01. The business had revenue of $614.51 million for the quarter, compared to analysts' expectations of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The firm's revenue was up 33.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.19 EPS. As a group, equities research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Analysts Set New Price Targets

NET has been the topic of a number of recent analyst reports. Piper Sandler lifted their price target on shares of Cloudflare from $220.00 to $222.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 11th. Barclays upped their price objective on shares of Cloudflare from $235.00 to $250.00 and gave the company an "overweight" rating in a research report on Wednesday, February 11th. Truist Financial set a $225.00 target price on Cloudflare in a report on Tuesday, January 20th. DZ Bank raised Cloudflare from a "hold" rating to a "buy" rating and set a $215.00 target price for the company in a research note on Friday, February 13th. Finally, Royal Bank Of Canada increased their price target on Cloudflare from $230.00 to $240.00 and gave the stock an "outperform" rating in a report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $230.70.

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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