Trexquant Investment LP Reduces Stock Position in Cloudflare, Inc. $NET

Key Points

• Trexquant Investment LP has reduced its stake in Cloudflare, Inc. by 33.1%, now holding 174,042 shares valued at approximately $19.6 million.
• Analysts have set a consensus price target of $191.28 for Cloudflare, with ratings ranging from "Strong Buy" to "Sell".
• Insider selling activity increased with CFO Thomas J. Seifert and other executives offloading shares totaling over $13 million in value recently.

Trexquant Investment LP decreased its holdings in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 33.1% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 174,042 shares of the company's stock after selling 86,168 shares during the period. Trexquant Investment LP owned about 0.05% of Cloudflare worth $19,613,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in Cloudflare by 1.8% during the first quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company's stock worth $3,475,011,000 after purchasing an additional 538,850 shares during the period. American Century Companies Inc. lifted its stake in Cloudflare by 34.5% during the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after purchasing an additional 779,819 shares during the period. Northern Trust Corp lifted its stake in Cloudflare by 1.7% during the first quarter. Northern Trust Corp now owns 1,880,888 shares of the company's stock worth $211,957,000 after purchasing an additional 31,745 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in Cloudflare by 8.1% during the first quarter. Charles Schwab Investment Management Inc. now owns 1,321,208 shares of the company's stock worth $148,887,000 after purchasing an additional 99,448 shares during the period. Finally, Raymond James Financial Inc. lifted its stake in Cloudflare by 129.7% during the first quarter. Raymond James Financial Inc. now owns 1,097,235 shares of the company's stock worth $123,647,000 after purchasing an additional 619,526 shares during the period. Institutional investors own 82.68% of the company's stock.

Insider Buying and Selling

In other Cloudflare news, insider Douglas James Kramer sold 3,000 shares of the business's stock in a transaction on Friday, August 1st. The shares were sold at an average price of $198.22, for a total transaction of $594,660.00. Following the sale, the insider owned 157,377 shares of the company's stock, valued at $31,195,268.94. The trade was a 1.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Carl Ledbetter sold 15,000 shares of the business's stock in a transaction on Monday, August 25th. The shares were sold at an average price of $195.73, for a total transaction of $2,935,950.00. Following the transaction, the director owned 1,028,073 shares of the company's stock, valued at $201,224,728.29. This trade represents a 1.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 728,705 shares of company stock worth $137,798,322 in the last three months. Insiders own 10.89% of the company's stock.

Cloudflare Trading Down 2.1%

NET traded down $4.46 during trading on Monday, reaching $208.96. 2,095,088 shares of the stock traded hands, compared to its average volume of 2,356,969. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $72.82 billion, a PE ratio of -614.60 and a beta of 1.95. The stock's 50-day moving average is $196.16 and its 200 day moving average is $158.05. Cloudflare, Inc. has a 12 month low of $74.88 and a 12 month high of $219.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping analysts' consensus estimates of $0.18 by $0.03. The company had revenue of $512.32 million for the quarter, compared to analyst estimates of $501.58 million. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The firm's revenue was up 27.8% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.20 EPS. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. Equities analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Analyst Ratings Changes

Several research analysts have issued reports on NET shares. Bank of America upped their price objective on Cloudflare from $235.00 to $240.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Piper Sandler increased their price objective on shares of Cloudflare from $151.00 to $224.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Citigroup raised their target price on shares of Cloudflare from $240.00 to $255.00 and gave the company a "buy" rating in a research note on Monday, August 18th. Guggenheim raised their price objective on shares of Cloudflare from $70.00 to $111.00 and gave the stock a "sell" rating in a research report on Friday, August 1st. Finally, Cantor Fitzgerald lifted their price target on shares of Cloudflare from $162.00 to $199.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $191.28.

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.