Sowell Financial Services LLC Grows Stock Position in Cloudflare, Inc. $NET

Key Points

• Sowell Financial Services LLC has increased its stake in Cloudflare, Inc. by 78.9%, holding a total of 3,595 shares valued at approximately $704,000 as per its latest SEC filing.
• Cloudflare's CFO, Thomas J. Seifert, sold 34,270 shares worth about $6.86 million, resulting in a 12.42% reduction in his ownership.
• Analysts have recently raised their target prices on Cloudflare's stock, with estimates now ranging from $200.00 to $250.00, reflecting a bullish outlook for the company.

Sowell Financial Services LLC increased its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 78.9% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,595 shares of the company's stock after acquiring an additional 1,585 shares during the period. Sowell Financial Services LLC's holdings in Cloudflare were worth $704,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also bought and sold shares of NET. Smartleaf Asset Management LLC boosted its stake in shares of Cloudflare by 6.2% during the first quarter. Smartleaf Asset Management LLC now owns 1,320 shares of the company's stock valued at $152,000 after purchasing an additional 77 shares during the period. Gill Capital Partners LLC boosted its position in Cloudflare by 2.9% during the 1st quarter. Gill Capital Partners LLC now owns 2,761 shares of the company's stock valued at $311,000 after buying an additional 79 shares during the period. Spire Wealth Management grew its holdings in Cloudflare by 11.0% in the 1st quarter. Spire Wealth Management now owns 962 shares of the company's stock worth $108,000 after acquiring an additional 95 shares during the last quarter. Yousif Capital Management LLC increased its position in shares of Cloudflare by 2.5% in the first quarter. Yousif Capital Management LLC now owns 3,969 shares of the company's stock valued at $447,000 after acquiring an additional 98 shares during the period. Finally, Freestone Capital Holdings LLC raised its stake in shares of Cloudflare by 1.9% during the first quarter. Freestone Capital Holdings LLC now owns 5,263 shares of the company's stock valued at $593,000 after acquiring an additional 98 shares during the last quarter. 82.68% of the stock is currently owned by institutional investors.

Insider Buying and Selling

In other news, CFO Thomas J. Seifert sold 34,270 shares of the stock in a transaction on Monday, July 21st. The stock was sold at an average price of $200.17, for a total value of $6,859,825.90. Following the sale, the chief financial officer directly owned 241,550 shares of the company's stock, valued at approximately $48,351,063.50. This represents a 12.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Michelle Zatlyn sold 35,100 shares of the firm's stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $191.71, for a total value of $6,729,021.00. Following the transaction, the insider owned 14,575 shares of the company's stock, valued at $2,794,173.25. The trade was a 70.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 690,738 shares of company stock worth $137,603,592 over the last three months. 10.89% of the stock is owned by corporate insiders.

Cloudflare Stock Down 2.6%

Shares of Cloudflare stock opened at $217.44 on Thursday. Cloudflare, Inc. has a 1 year low of $77.80 and a 1 year high of $230.10. The firm has a market cap of $75.77 billion, a price-to-earnings ratio of -639.52 and a beta of 1.95. The company has a 50-day moving average of $206.85 and a 200 day moving average of $166.53. The company has a debt-to-equity ratio of 2.63, a current ratio of 5.14 and a quick ratio of 5.14.

Cloudflare (NYSE:NET - Get Free Report) last announced 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 business had revenue of $512.32 million for the quarter, compared to analysts' expectations of $501.58 million. During the same quarter in the prior year, the company earned $0.20 earnings per share. The business's revenue was up 27.8% compared to the same quarter last year. 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, sell-side analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms recently issued reports on NET. UBS Group raised their target price on Cloudflare from $145.00 to $200.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. KeyCorp lifted their price objective on Cloudflare from $210.00 to $235.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Mizuho upped their target price on Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Wells Fargo & Company lifted their price target on shares of Cloudflare from $225.00 to $250.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Finally, Scotiabank boosted their price objective on shares of Cloudflare from $135.00 to $200.00 and gave the company a "sector perform" rating in a research report on Friday, August 1st. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $191.28.

About Cloudflare

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.

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