Triasima Portfolio Management inc. Reduces Position in Cloudflare, Inc. $NET

Key Points

• Triasima Portfolio Management cut its Cloudflare stake by 30.0% in Q4, selling 5,175 shares and leaving it with 12,052 shares valued at $2.376 million.
• Large institutions added to positions—Jennison Associates raised its stake by 802.6% to 1,863,612 shares (~$367.4M) and Vanguard owns 32,317,249 shares (~$6.93B)—and institutional investors now hold 82.68% of the stock.
• Insiders sold 616,104 shares worth $120.5M over the past three months (including sales by CFO Thomas Seifert and Michelle Zatlyn), while analysts' consensus rating is a Moderate Buy with a $232.62 price target.

Triasima Portfolio Management inc. lessened its stake in shares of Cloudflare, Inc. (NYSE:NET - Free Report) by 30.0% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 12,052 shares of the company's stock after selling 5,175 shares during the period. Triasima Portfolio Management inc.'s holdings in Cloudflare were worth $2,376,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of NET. Jennison Associates LLC lifted its stake in Cloudflare by 802.6% during the 4th quarter. Jennison Associates LLC now owns 1,863,612 shares of the company's stock valued at $367,411,000 after acquiring an additional 1,657,144 shares during the period. Groupama Asset Managment lifted its stake in Cloudflare by 82.6% during the 3rd quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock valued at $450,639,000 after acquiring an additional 950,000 shares during the period. Vanguard Group Inc. lifted its stake in Cloudflare by 2.6% during the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock valued at $6,934,958,000 after acquiring an additional 821,684 shares during the period. Rakuten Investment Management Inc. acquired a new stake in Cloudflare during the 3rd quarter valued at approximately $138,660,000. Finally, Massachusetts Financial Services Co. MA lifted its stake in Cloudflare by 96.3% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,302,893 shares of the company's stock valued at $279,588,000 after acquiring an additional 639,245 shares during the period. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have commented on NET. Weiss Ratings restated a "sell (d-)" rating on shares of Cloudflare in a research note on Monday, April 20th. Piper Sandler upgraded shares of Cloudflare from a "neutral" rating to an "overweight" rating and set a $222.00 price objective for the company in a research note on Tuesday, April 14th. KeyCorp cut shares of Cloudflare from an "overweight" rating to a "hold" rating in a research note on Wednesday, April 15th. Zacks Research upgraded shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Finally, Royal Bank Of Canada lifted their price objective on shares of Cloudflare from $230.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat.com, Cloudflare currently has a consensus rating of "Moderate Buy" and a consensus price target of $232.62.

Cloudflare Stock Performance

NET opened at $217.82 on Monday. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98. The firm has a fifty day moving average price of $199.89 and a 200 day moving average price of $200.05. Cloudflare, Inc. has a 1 year low of $120.46 and a 1 year high of $260.00. The stock has a market cap of $76.67 billion, a P/E ratio of -751.07 and a beta of 1.67.

Cloudflare (NYSE:NET - Get Free Report) last posted its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.01. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The firm had revenue of $614.51 million during the quarter, compared to analysts' expectations of $591.67 million. During the same period in the previous year, the business posted $0.19 EPS. The business's revenue was up 33.6% compared to the same quarter last year. Equities research analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Activity at Cloudflare

In related news, CFO Thomas J. Seifert sold 41,557 shares of the business's stock in a transaction on Friday, February 20th. The shares were sold at an average price of $185.04, for a total value of $7,689,707.28. Following the completion of the transaction, the chief financial officer directly owned 85,452 shares in the company, valued at $15,812,038.08. The trade was a 32.72% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Michelle Zatlyn sold 35,080 shares of the business's stock in a transaction on Thursday, February 19th. The shares were sold at an average price of $187.39, for a total transaction of $6,573,641.20. Following the completion of the transaction, the insider owned 34,514 shares of the company's stock, valued at approximately $6,467,578.46. This represents a 50.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 616,104 shares of company stock worth $120,517,852 in the last three months. Company insiders own 10.89% of the company's stock.

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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