SWS Partners Trims Stock Position in Cloudflare, Inc. $NET

Key Points

• SWS Partners reduced its stake in Cloudflare, Inc. by 16.0%, ending the second quarter with 19,277 shares, valued at approximately $3.775 million.
• Several institutional investors, including Jefferies Financial Group and Wealth Enhancement Advisory Services, adjusted their positions in Cloudflare recently, indicating active trading and interest in the stock.
• Cloudflare reported earnings that exceeded expectations with an EPS of $0.21 for the last quarter, along with a revenue increase of 27.8% year-over-year, signaling strong business performance.

SWS Partners lessened its position in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 16.0% during the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 19,277 shares of the company's stock after selling 3,671 shares during the quarter. Cloudflare comprises approximately 1.0% of SWS Partners' portfolio, making the stock its 27th largest position. SWS Partners' holdings in Cloudflare were worth $3,775,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in NET. Jefferies Financial Group Inc. purchased a new stake in shares of Cloudflare during the 4th quarter valued at approximately $273,000. Centaurus Financial Inc. purchased a new stake in Cloudflare in the fourth quarter valued at approximately $129,000. Wealth Enhancement Advisory Services LLC raised its position in Cloudflare by 22.5% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 30,652 shares of the company's stock valued at $3,301,000 after purchasing an additional 5,638 shares during the period. Wellington Management Group LLP raised its position in Cloudflare by 47.0% in the fourth quarter. Wellington Management Group LLP now owns 5,930 shares of the company's stock valued at $639,000 after purchasing an additional 1,896 shares during the period. Finally, MassMutual Private Wealth & Trust FSB raised its position in Cloudflare by 115.4% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 265 shares of the company's stock valued at $30,000 after purchasing an additional 142 shares during the period. Hedge funds and other institutional investors own 82.68% of the company's stock.

Cloudflare Stock Performance

NYSE:NET opened at $216.60 on Monday. The company has a fifty day simple moving average of $207.78 and a two-hundred day simple moving average of $168.62. The company has a market cap of $75.48 billion, a price-to-earnings ratio of -637.06 and a beta of 1.95. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. Cloudflare, Inc. has a 52 week low of $77.80 and a 52 week high of $230.10.

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. The firm had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The company's revenue was up 27.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.20 earnings per share. 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, equities analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Thomas J. Seifert sold 34,270 shares of the business's stock in a transaction on Monday, July 21st. The shares were sold at an average price of $200.17, for a total transaction of $6,859,825.90. Following the completion of the transaction, the chief financial officer owned 241,550 shares in the company, valued at approximately $48,351,063.50. The trade was a 12.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Matthew Prince sold 52,384 shares of the company's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $184.58, for a total transaction of $9,669,038.72. Following the completion of the transaction, the chief executive officer owned 381,213 shares of the company's stock, valued at $70,364,295.54. This represents a 12.08% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 727,020 shares of company stock worth $145,872,429. 10.89% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. UBS Group boosted their target price on Cloudflare from $145.00 to $200.00 and gave the company a "neutral" rating in a research report on Thursday, July 24th. Oppenheimer reissued an "outperform" rating and issued a $200.00 target price (up previously from $165.00) on shares of Cloudflare in a research report on Thursday, June 5th. KeyCorp boosted their target price on Cloudflare from $210.00 to $235.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Needham & Company LLC boosted their target price on Cloudflare from $200.00 to $240.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Finally, Stifel Nicolaus boosted their target price on Cloudflare from $175.00 to $230.00 and gave the company a "buy" rating in a research report on Friday, August 1st. One 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 given a Sell rating to the company's stock. According to MarketBeat, Cloudflare has a consensus rating of "Moderate Buy" and an average 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.

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