Cloudflare, Inc. (NYSE:NET) Stake Trimmed by Strategy Capital LLC

Key Points

• Strategy Capital LLC sold 71,319 shares of Cloudflare, reducing its stake by 6.1%, while still holding approximately 1,095,921 shares, making Cloudflare the 5th largest holding in their portfolio.
• Cloudflare's stock has a current market cap of $69.99 billion and reported revenues of $512.32 million for the last quarter, which was a 27.8% increase year-over-year.
• Insider sales have been significant, with CFO Thomas J. Seifert selling a total of 93,400 shares recently, indicating a 19.67% decrease in his ownership of the stock.

Strategy Capital LLC lessened its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 6.1% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 1,095,921 shares of the company's stock after selling 71,319 shares during the quarter. Cloudflare makes up 11.8% of Strategy Capital LLC's holdings, making the stock its 5th biggest position. Strategy Capital LLC owned about 0.32% of Cloudflare worth $123,499,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in NET. Wellington Management Group LLP grew its position in Cloudflare by 47.0% during the fourth quarter. Wellington Management Group LLP now owns 5,930 shares of the company's stock valued at $639,000 after buying an additional 1,896 shares during the period. Envestnet Asset Management Inc. grew its position in Cloudflare by 21.0% during the fourth quarter. Envestnet Asset Management Inc. now owns 200,514 shares of the company's stock valued at $21,591,000 after buying an additional 34,765 shares during the period. Cerity Partners LLC grew its position in Cloudflare by 1.4% during the fourth quarter. Cerity Partners LLC now owns 18,679 shares of the company's stock valued at $1,896,000 after buying an additional 263 shares during the period. Advisory Services Network LLC acquired a new stake in Cloudflare during the fourth quarter valued at $425,000. Finally, Mariner LLC grew its position in Cloudflare by 1.5% during the fourth quarter. Mariner LLC now owns 105,522 shares of the company's stock valued at $11,363,000 after buying an additional 1,509 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

Cloudflare Trading Down 2.1%

NET stock traded down $4.16 during trading on Thursday, reaching $195.18. 2,534,555 shares of the stock were exchanged, compared to its average volume of 3,667,604. The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. The business has a 50 day moving average price of $191.31 and a 200-day moving average price of $154.30. Cloudflare, Inc. has a 1 year low of $74.88 and a 1 year high of $219.00. The firm has a market capitalization of $68.02 billion, a price-to-earnings ratio of -574.07 and a beta of 1.84.

Cloudflare (NYSE:NET - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.21 EPS 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 the consensus estimate of $501.58 million. During the same period in the previous year, the firm earned $0.20 earnings per share. Cloudflare's quarterly revenue was up 27.8% compared to the same quarter last year. On average, research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity at Cloudflare

In other news, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $171.25, for a total value of $8,970,760.00. Following the transaction, the chief executive officer directly owned 381,213 shares in the company, valued at approximately $65,282,726.25. This represents a 12.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Michelle Zatlyn sold 35,098 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $156.83, for a total transaction of $5,504,419.34. Following the completion of the transaction, the insider owned 6,390 shares in the company, valued at approximately $1,002,143.70. This represents a 84.60% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 586,294 shares of company stock valued at $106,298,200. 10.89% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on NET. Morgan Stanley boosted their target price on shares of Cloudflare from $225.00 to $235.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Mizuho boosted their price objective on Cloudflare from $220.00 to $240.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. KeyCorp increased their target price on Cloudflare from $210.00 to $235.00 and gave the company an "overweight" rating in a report on Friday, August 1st. UBS Group lifted their price target on Cloudflare from $145.00 to $200.00 and gave the stock a "neutral" rating in a research note on Thursday, July 24th. Finally, DZ Bank reissued a "sell" rating and issued a $170.00 price objective on shares of Cloudflare in a research note on Tuesday, July 22nd. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, Cloudflare currently has an average rating of "Moderate Buy" and a consensus price target of $186.88.

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.