Trek Financial LLC Purchases New Position in Cloudflare, Inc. $NET

Key Points

• Trek Financial LLC opened a new position in Cloudflare during the fourth quarter, buying 9,094 shares worth about $1.79 million.
• Cloudflare’s latest earnings beat expectations, with Q1 revenue of $639.8 million up 33.5% year over year and EPS of $0.25 versus estimates of $0.23. The company also issued next-quarter guidance that was roughly in line with forecasts.
• Analyst sentiment remains generally positive, with an average rating of “Moderate Buy” and an average price target of $236.68, even as some insiders recently sold shares and the stock traded lower on the day.

Trek Financial LLC acquired a new stake in Cloudflare, Inc. (NYSE:NET - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 9,094 shares of the company's stock, valued at approximately $1,793,000.

A number of other institutional investors also recently bought and sold shares of NET. Physician Wealth Advisors Inc. increased its stake in Cloudflare by 693.3% in the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock valued at $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC acquired a new position in Cloudflare in the third quarter valued at $26,000. Westside Investment Management Inc. increased its stake in Cloudflare by 100.0% in the third quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after purchasing an additional 65 shares during the period. Wexford Capital LP acquired a new position in Cloudflare in the third quarter valued at $30,000. Finally, Cloud Capital Management LLC acquired a new position in Cloudflare in the third quarter valued at $31,000. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have commented on NET shares. Zacks Research upgraded shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Jefferies Financial Group started coverage on shares of Cloudflare in a research note on Wednesday, April 15th. They issued a "buy" rating on the stock. Wells Fargo & Company lifted their price objective on shares of Cloudflare from $265.00 to $270.00 and gave the company an "overweight" rating in a research note on Wednesday, February 11th. Cantor Fitzgerald restated a "neutral" rating and issued a $224.00 price objective on shares of Cloudflare in a research note on Wednesday, February 11th. Finally, UBS Group reiterated a "neutral" rating and set a $220.00 price target on shares of Cloudflare in a research note on Wednesday, February 11th. Eighteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $236.68.

Insider Transactions at Cloudflare

In related news, CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $209.08, for a total transaction of $10,952,446.72. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Thomas J. Seifert sold 41,557 shares of the business's stock in a transaction dated Friday, February 20th. The stock was sold at an average price of $185.04, for a total transaction of $7,689,707.28. Following the sale, the chief financial officer directly owned 85,452 shares in the company, valued at approximately $15,812,038.08. This represents a 32.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 636,246 shares of company stock worth $125,320,379 over the last ninety days. 10.89% of the stock is currently owned by company insiders.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare reported Q1 revenue of $639.8 million, up 33.5% year over year and above Wall Street expectations, while non-GAAP EPS of $0.25 also beat estimates. Management also guided next quarter revenue near $664.5 million, which was close to analyst forecasts. NET Q1 Deep Dive: AI-Driven Growth Fuels Restructuring Amidst Market Caution
• Positive Sentiment: Susquehanna raised its price target on Cloudflare to $200 from $190 after the earnings beat, signaling that at least some analysts see more upside despite the recent pullback. Cloudflare Just Hit the AI-First Reset Button: Susquehanna Hikes Price Target to $200
• Neutral Sentiment: Cloudflare remains a heavily discussed stock, with multiple articles focusing on analyst ratings and investor interest rather than new fundamental developments. Cloudflare, Inc. (NET) Is a Trending Stock: Facts to Know Before Betting on It
• Neutral Sentiment: Wall Street analyst coverage remains favorable on average, but the coverage itself appears to be the subject of debate rather than a fresh catalyst for the stock. Wall Street Analysts Think Cloudflare (NET) Is a Good Investment: Is It?
• Negative Sentiment: Investor sentiment has been weighed down by reports of a major restructuring and roughly 20% job cuts, with executives tying the changes to an AI-first operating model. Cloudflare stock plunges amid 20% job cuts. Executives are blaming AI

Cloudflare Trading Down 3.3%

Shares of Cloudflare stock opened at $187.23 on Wednesday. Cloudflare, Inc. has a 52-week low of $143.00 and a 52-week high of $260.00. The company has a quick ratio of 1.98, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The company's 50-day simple moving average is $206.07 and its 200-day simple moving average is $200.42. The firm has a market cap of $65.90 billion, a price-to-earnings ratio of -748.92 and a beta of 1.67.

Cloudflare (NYSE:NET - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The business had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. During the same period in the previous year, the business posted $0.16 earnings per share. The business's revenue was up 33.5% compared to the same quarter last year. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, equities research analysts anticipate that Cloudflare, Inc. will post -0.1 earnings per share for the current year.

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.

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