Shelton Wealth Management LLC Invests $1.37 Million in Cloudflare, Inc. $NET

Key Points

• Shelton Wealth Management LLC made a significant investment of approximately $1.37 million in Cloudflare, purchasing 7,013 shares during the second quarter.
• Insiders have notably sold a total of 665,738 shares worth approximately $131.97 million in the past three months, indicating a reduction in their ownership positions.
• Cloudflare's stock has received several price target upgrades from analysts, with updates from firms like Piper Sandler and Wells Fargo reflecting a bullish outlook on the company's performance.

Shelton Wealth Management LLC acquired a new position in Cloudflare, Inc. (NYSE:NET - Free Report) in the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 7,013 shares of the company's stock, valued at approximately $1,373,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Financiere des Professionnels Fonds d investissement inc. acquired a new stake in Cloudflare during the second quarter worth $226,000. Assenagon Asset Management S.A. lifted its position in Cloudflare by 8.3% in the second quarter. Assenagon Asset Management S.A. now owns 6,991 shares of the company's stock valued at $1,369,000 after buying an additional 533 shares during the last quarter. IFM Investors Pty Ltd boosted its stake in Cloudflare by 4.5% during the second quarter. IFM Investors Pty Ltd now owns 58,716 shares of the company's stock worth $11,498,000 after buying an additional 2,538 shares during the period. Grove Bank & Trust purchased a new position in Cloudflare during the second quarter worth about $108,000. Finally, Wealth Enhancement Advisory Services LLC boosted its stake in Cloudflare by 11.7% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 36,045 shares of the company's stock worth $6,894,000 after buying an additional 3,777 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare Stock Down 1.5%

NET stock traded down $3.43 during midday trading on Tuesday, reaching $224.85. 900,725 shares of the company were exchanged, compared to its average volume of 3,452,542. The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14. Cloudflare, Inc. has a 1-year low of $77.80 and a 1-year high of $230.10. The stock's 50-day simple moving average is $205.56 and its 200 day simple moving average is $165.78. The company has a market cap of $78.36 billion, a price-to-earnings ratio of -661.20 and a beta of 1.95.

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

Insider Buying and Selling at Cloudflare

In other news, CFO Thomas J. Seifert sold 59,130 shares of the company's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $200.30, for a total transaction of $11,843,739.00. Following the transaction, the chief financial officer directly owned 241,550 shares of the company's stock, valued at $48,382,465. This represents a 19.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Michelle Zatlyn sold 35,100 shares of the company's stock in a transaction on Thursday, August 21st. The stock was sold at an average price of $191.71, for a total transaction of $6,729,021.00. Following the transaction, the insider directly owned 14,575 shares in the company, valued at approximately $2,794,173.25. This trade represents a 70.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 690,738 shares of company stock valued at $137,603,592. Insiders own 10.89% of the company's stock.

Analyst Upgrades and Downgrades

NET has been the subject of several research analyst reports. Wells Fargo & Company increased their target price on shares of Cloudflare from $225.00 to $250.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Citigroup increased their target price on shares of Cloudflare from $240.00 to $255.00 and gave the stock a "buy" rating in a research note on Monday, August 18th. Piper Sandler increased their target price on shares of Cloudflare from $151.00 to $224.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Royal Bank Of Canada increased their target price on shares of Cloudflare from $210.00 to $228.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. Finally, Guggenheim increased their price target on shares of Cloudflare from $70.00 to $111.00 and gave the stock a "sell" rating in a research report on Friday, August 1st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $191.28.

Cloudflare 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.