Sumitomo Mitsui DS Asset Management Company Ltd Increases Position in Cloudflare, Inc. $NET

Key Points

• Sumitomo Mitsui DS Asset Management Company Ltd increased its holdings in Cloudflare, Inc. by 11.0%, totaling 30,797 shares worth approximately $6.03 million.
• Institutional investors now control 82.68% of Cloudflare's stock, with several firms significantly raising their positions in the first quarter of the year.
• Cloudflare's stock analysts have varied price targets, with Piper Sandler setting a new target of $224.00, while Bank of America increased its target to $240.00, reflecting a generally positive outlook for the company.

Sumitomo Mitsui DS Asset Management Company Ltd raised its position in Cloudflare, Inc. (NYSE:NET - Free Report) by 11.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 30,797 shares of the company's stock after acquiring an additional 3,040 shares during the quarter. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in Cloudflare were worth $6,031,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. Mather Group LLC. increased its position in shares of Cloudflare by 1,188.2% during the first quarter. Mather Group LLC. now owns 219 shares of the company's stock valued at $25,000 after buying an additional 202 shares during the period. NBC Securities Inc. bought a new position in Cloudflare in the first quarter worth about $27,000. GPS Wealth Strategies Group LLC raised its stake in Cloudflare by 213.4% in the first quarter. GPS Wealth Strategies Group LLC now owns 257 shares of the company's stock worth $29,000 after buying an additional 175 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in Cloudflare by 115.4% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock worth $30,000 after buying an additional 142 shares in the last quarter. Finally, Global Financial Private Client LLC lifted its stake in shares of Cloudflare by 38,100.0% in the 1st quarter. Global Financial Private Client LLC now owns 382 shares of the company's stock valued at $43,000 after purchasing an additional 381 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Performance

Cloudflare stock traded up $3.88 during midday trading on Monday, reaching $229.82. 1,350,468 shares of the company traded hands, compared to its average volume of 3,459,303. 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, Inc. has a 12 month low of $77.80 and a 12 month high of $230.10. The firm has a market capitalization of $80.09 billion, a price-to-earnings ratio of -675.37 and a beta of 1.95. The business has a 50 day moving average of $204.65 and a two-hundred day moving average of $165.07.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping the consensus estimate 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 the consensus estimate of $501.58 million. During the same period last year, the firm earned $0.20 earnings per share. The company's quarterly revenue 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. As a group, research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the company. JMP Securities raised their target price on Cloudflare from $180.00 to $225.00 and gave the company a "market outperform" rating in a research note on Monday, July 28th. Mizuho raised their target price on Cloudflare from $220.00 to $240.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Bank of America raised their target price on Cloudflare from $235.00 to $240.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Royal Bank Of Canada boosted their price objective 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, Morgan Stanley boosted their price objective 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. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $191.28.

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 59,130 shares of the stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $200.30, for a total value of $11,843,739.00. Following the transaction, the chief financial officer directly owned 241,550 shares in the company, valued at approximately $48,382,465. This trade represents a 19.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $184.58, for a total transaction of $9,669,038.72. Following the completion of the sale, the chief executive officer directly owned 381,213 shares of the company's stock, valued at approximately $70,364,295.54. This trade represents a 12.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 665,738 shares of company stock valued at $131,968,542 over the last three months. Insiders own 10.89% of the company's stock.

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.