Whetstone Capital Advisors LLC Buys 99,830 Shares of Cloudflare, Inc. $NET

Key Points

• Whetstone Capital Advisors increased its Cloudflare stake by 51.7%, purchasing 99,830 shares to own 292,861 shares worth approximately $71.8 million. Institutional investors and hedge funds collectively own 82.68% of the company.
• Cloudflare reported quarterly revenue of $696.1 million, up 35.9% year over year, and earnings of $0.29 per share, exceeding analyst expectations. The company issued third-quarter 2026 EPS guidance of $0.34.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and average price target of $320.19, although the stock’s elevated valuation and recent insider sales—including $186.8 million sold over 90 days—remain potential concerns.

Whetstone Capital Advisors LLC grew its stake in Cloudflare, Inc. (NYSE:NET - Free Report) by 51.7% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 292,861 shares of the company's stock after buying an additional 99,830 shares during the quarter. Cloudflare accounts for approximately 18.9% of Whetstone Capital Advisors LLC's portfolio, making the stock its 2nd biggest position. Whetstone Capital Advisors LLC owned approximately 0.08% of Cloudflare worth $71,833,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also made changes to their positions in the company. Empowered Funds LLC lifted its stake in Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock worth $750,000 after acquiring an additional 1,696 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in shares of Cloudflare in the 2nd quarter valued at $424,000. Cerity Partners LLC lifted its position in shares of Cloudflare by 30.1% during the 2nd quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock worth $5,391,000 after purchasing an additional 6,363 shares during the last quarter. Sei Investments Co. lifted its position in shares of Cloudflare by 40.1% during the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company's stock worth $64,432,000 after purchasing an additional 94,112 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its stake in shares of Cloudflare by 14.6% during the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock worth $3,224,000 after purchasing an additional 2,093 shares in the last quarter. 82.68% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In related news, insider Michelle Zatlyn sold 33,003 shares of the company's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $294.63, for a total value of $9,723,673.89. Following the completion of the sale, the insider owned 69,775 shares in the company, valued at $20,557,808.25. This represents a 32.11% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 55,000 shares of the stock in a transaction 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 sale, the chief financial officer owned 113,790 shares of the company's stock, valued at approximately $34,171,137. This represents a 32.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 706,244 shares of company stock valued at $186,761,866 in the last ninety days. 10.66% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research firms have weighed in on NET. Morgan Stanley restated an "overweight" rating and issued a $370.00 price target on shares of Cloudflare in a research note on Friday, August 7th. Scotiabank increased their price objective on Cloudflare from $300.00 to $390.00 and gave the company an "outperform" rating in a report on Friday, August 7th. Benchmark lowered Cloudflare to an "underperform" rating in a research report on Tuesday, July 7th. Mizuho upped their price target on Cloudflare from $260.00 to $310.00 and gave the company an "outperform" rating in a report on Wednesday, July 15th. Finally, Citigroup restated a "market outperform" rating on shares of Cloudflare in a research report on Monday, August 31st. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $320.19.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare introduced an AI security service that integrates OpenAI’s cybersecurity models with Cloudflare’s global infrastructure. Investors viewed the agreement as a high-profile validation of Cloudflare’s agentic-AI and cybersecurity strategy, supporting expectations for stronger enterprise demand. Cloudflare Shares Skyrocket, What You Need To Know
• Positive Sentiment: Meta’s unveiling of its Muse personalized AI agent added to investor enthusiasm around AI agents. Cloudflare is positioned to benefit as companies require security, connectivity and performance infrastructure for increasingly autonomous AI applications. Why Cloudflare Rallied Today
• Positive Sentiment: The OpenAI announcement reinforced recent growth themes in Cloudflare’s AI security, SASE and Workers businesses. The company’s latest reported quarter also showed 35.9% year-over-year revenue growth, with earnings and revenue exceeding analyst expectations.
• Neutral Sentiment: Cloudflare’s valuation remains demanding after the rally. Analysts generally maintain a positive outlook, with a consensus “Moderate Buy” rating and price target near $320, but the stock’s premium valuation leaves it sensitive to execution and growth expectations.
• Negative Sentiment: Insider Michelle Zatlyn sold 33,003 shares worth approximately $9.2 million, reducing her direct holdings by about 32%. The sale was conducted under a pre-arranged Rule 10b5-1 plan, which limits its significance as a discretionary signal, but it may still concern some investors. Insider Selling: Cloudflare Insider Sells 33,003 Shares

Cloudflare Stock Up 10.6%

Cloudflare stock opened at $314.40 on Thursday. The company has a market capitalization of $111.13 billion, a P/E ratio of -542.07, a PEG ratio of 232.40 and a beta of 1.66. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $332.22. The stock has a 50-day simple moving average of $283.25 and a 200-day simple moving average of $237.52.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The firm had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. During the same quarter last year, the business posted $0.21 EPS. The firm's quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Equities research analysts expect that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

About Cloudflare

Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.

The company's offerings include content delivery and domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.

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