SlateStone Wealth LLC Trims Stake in Cloudflare, Inc. $NET

Key Points

• SlateStone Wealth LLC reduced its Cloudflare stake by 40.4% in the second quarter, selling 4,046 shares and retaining 5,978 shares valued at approximately $1.47 million.
• Cloudflare reported quarterly revenue of $696.1 million, up 35.9% year over year, and adjusted EPS of $0.29, beating analyst expectations. The stock was trading near $311.48, close to its 52-week high.
• Insiders sold approximately $184.6 million worth of shares over the past 90 days, while analysts maintained a consensus “Moderate Buy” rating with an average price target of $320.19.

SlateStone Wealth LLC cut its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 40.4% in the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 5,978 shares of the company's stock after selling 4,046 shares during the period. SlateStone Wealth LLC's holdings in Cloudflare were worth $1,466,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also made changes to their positions in the company. HM Payson & Co. purchased a new position in shares of Cloudflare during the fourth quarter valued at $25,000. Wiser Advisor Group LLC bought a new position in Cloudflare during the 3rd quarter worth about $26,000. Wexford Capital LP bought a new position in Cloudflare during the 3rd quarter worth about $30,000. CX Institutional raised its holdings in shares of Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after purchasing an additional 44 shares in the last quarter. Finally, Brown Brothers Harriman & Co. raised its holdings in shares of Cloudflare by 55.4% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 157 shares of the company's stock valued at $34,000 after purchasing an additional 56 shares in the last quarter. 82.68% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director John Graham-Cumming sold 2,520 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $303.97, for a total value of $766,004.40. Following the completion of the sale, the director owned 494,909 shares of the company's stock, valued at $150,437,488.73. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 33,631 shares of the business's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $296.10, for a total value of $9,958,139.10. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 752,052 shares of company stock worth $184,648,633. Company insiders own 10.66% of the company's stock.

Cloudflare Trading Up 1.5%

NYSE NET opened at $311.48 on Thursday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. The firm has a market cap of $110.10 billion, a PE ratio of -537.03, a price-to-earnings-growth ratio of 189.82 and a beta of 1.65. The company has a 50 day moving average price of $259.43 and a 200 day moving average price of $221.96. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $324.73.

Cloudflare (NYSE:NET - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.29 earnings per share for the quarter, beating 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 company had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same period last year, the firm earned $0.21 earnings per share. Cloudflare's revenue was up 35.9% compared to the same quarter last year. As a group, sell-side analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on NET. Stifel Nicolaus set a $260.00 price objective on shares of Cloudflare in a research note on Friday, May 8th. Wells Fargo & Company boosted their price objective on shares of Cloudflare from $300.00 to $380.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. UBS Group upped their target price on Cloudflare from $250.00 to $350.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Susquehanna increased their target price on Cloudflare from $200.00 to $300.00 and gave the company a "neutral" rating in a research report on Monday. Finally, Citigroup lifted their price target on Cloudflare from $265.00 to $400.00 and gave the company a "buy" rating in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $320.19.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong second-quarter results support the rally. Cloudflare reported revenue of approximately $696.1 million, up 35.9% year over year and above expectations, while non-GAAP EPS of $0.29 exceeded consensus. Next-quarter revenue guidance of $736.5 million also topped analyst estimates, reinforcing confidence in continued growth. Cloudflare Q2 Deep Dive
• Positive Sentiment: AI security and enterprise demand are strengthening the growth story. Cloudflare’s AI-security strategy is supporting demand for SASE and Zero Trust products, while its agentic-AI and developer-platform offerings could help it win larger enterprise contracts and compete more directly with Palo Alto Networks and Zscaler. Cloudflare AI Security Strategy
• Positive Sentiment: New partnerships and government certifications expand Cloudflare’s addressable market. Signal selected Cloudflare as an independent Key Transparency auditor, adding credibility to Cloudflare’s privacy and security platform. Separately, FedRAMP High and GovRAMP Moderate authorizations position Cloudflare to pursue more government and regulated-industry contracts. Signal Partnership
• Neutral Sentiment: Analyst sentiment remains favorable but expectations are high. Cloudflare has a consensus “Moderate Buy” rating and an average target near $320, with several firms setting targets above that level. However, some target increases still imply limited upside after the stock’s substantial recent advance. Cloudflare Moderate Buy Rating
• Negative Sentiment: The $2.175 billion zero-coupon convertible-note offering creates a potential dilution overhang. The financing provides capital without cash interest payments, but conversions could dilute existing shareholders and increase future obligations. Cloudflare Convertible Notes Deal
• Negative Sentiment: Valuation and profitability remain risks. Cloudflare continues to post GAAP losses, and its premium valuation leaves the stock vulnerable if growth or margins disappoint. A director’s sale of 2,520 shares was conducted under a pre-arranged Rule 10b5-1 plan and is a relatively minor overhang. SEC Insider Transaction Filing

About Cloudflare

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.

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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