Teamwork Financial Advisors LLC Reduces Stake in Cloudflare, Inc. $NET

Key Points

• Teamwork Financial Advisors cut its Cloudflare stake by 79.9% in the second quarter, selling 5,396 shares and retaining 1,355 shares worth approximately $332,000. Institutional investors still own 82.68% of the company.
• Cloudflare reported strong quarterly results: revenue increased 35.9% year over year to $696.1 million, beating estimates, while EPS of $0.29 topped forecasts of $0.27. Management also raised its revenue and EPS outlook, citing continued AI-agent demand.
• NET shares remain highly valued and volatile. The stock opened at $301, near its 52-week high, while analysts generally maintain bullish ratings and have raised price targets; insider selling under pre-arranged trading plans remains a modest sentiment risk.

Teamwork Financial Advisors LLC lessened its holdings in Cloudflare, Inc. (NYSE:NET - Free Report) by 79.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,355 shares of the company's stock after selling 5,396 shares during the quarter. Teamwork Financial Advisors LLC's holdings in Cloudflare were worth $332,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Norges Bank acquired a new stake in Cloudflare during the 4th quarter valued at approximately $718,316,000. Jennison Associates LLC increased its stake in shares of Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after acquiring an additional 2,530,872 shares during the period. Corient Private Wealth LLC increased its stake in shares of Cloudflare by 4,042.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after acquiring an additional 1,365,598 shares during the period. Swedbank AB raised its holdings in shares of Cloudflare by 697.5% during the first quarter. Swedbank AB now owns 927,606 shares of the company's stock worth $191,402,000 after purchasing an additional 811,297 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA raised its holdings in shares of Cloudflare by 25.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock worth $323,259,000 after purchasing an additional 336,768 shares during the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Stock Up 5.8%

NET stock opened at $301.00 on Friday. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $324.73. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The firm's fifty day moving average is $257.02 and its 200 day moving average is $218.84. The firm has a market cap of $106.39 billion, a PE ratio of -518.96, a P/E/G ratio of 212.72 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.99%. The business had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. During the same quarter in the prior year, the firm posted $0.21 earnings per share. The company's revenue was up 35.9% compared to the same quarter last year. On average, research analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current year.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results beat expectations. Revenue rose 35.9% year over year to $696.1 million, exceeding the approximately $664.7 million consensus estimate. Adjusted EPS was $0.29 versus expectations of $0.27, supported by large-customer additions, Workers adoption and improved execution. Cloudflare Q2 earnings report
• Positive Sentiment: Cloudflare raised its forecast. Third-quarter guidance calls for approximately $736 million-$737 million in revenue and $0.34 EPS, above analyst estimates. Full-year 2026 revenue guidance was lifted to roughly $2.864 billion-$2.870 billion, while EPS guidance increased to $1.25-$1.26. Management cited resilient AI-agent demand across its network. Reuters outlook report
• Positive Sentiment: Analysts responded with higher targets. Citizens JMP raised its target to $394, while Oppenheimer and Needham increased targets to $380. BTIG, RBC, Piper Sandler and Truist also raised targets and maintained bullish ratings, signaling confidence in Cloudflare’s AI growth opportunity.
• Positive Sentiment: New AI products add potential growth avenues. Cloudflare launched Kitesurf, a cloud-hosted browser designed for AI agents, and an AEO Visibility Dashboard that helps brands track recommendations from AI assistants. TechCrunch Kitesurf report
• Neutral Sentiment: Valuation and volatility remain elevated. The rally has pushed Cloudflare near record levels, leaving the stock dependent on continued high growth, margin improvement and successful AI monetization.
• Negative Sentiment: Insider selling is a modest sentiment risk. CEO Matthew Prince, CFO Thomas Seifert and director Carl Ledbetter sold shares under pre-arranged Rule 10b5-1 plans. These transactions may concern investors but do not necessarily indicate weakening business fundamentals.

Analyst Upgrades and Downgrades

Several research firms have commented on NET. Scotiabank reaffirmed an "outperform" rating and issued a $390.00 price target on shares of Cloudflare in a report on Friday. Piper Sandler lifted their price objective on Cloudflare from $250.00 to $333.00 and gave the company an "overweight" rating in a research note on Friday. Sanford C. Bernstein reissued a "market perform" rating and issued a $136.00 price objective on shares of Cloudflare in a report on Wednesday, June 10th. KeyCorp boosted their price objective on Cloudflare from $300.00 to $375.00 and gave the company an "overweight" rating in a report on Friday. Finally, Zacks Research upgraded Cloudflare from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 20th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, six have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $311.48.

Insider Buying and Selling

In other Cloudflare news, CFO Thomas J. Seifert sold 55,000 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the transaction, the chief financial officer owned 113,790 shares in the company, valued at approximately $34,171,137. This represents a 32.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total value of $13,057,795.98. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 749,532 shares of company stock valued at $183,882,628. 10.66% of the stock is owned by company insiders.

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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