Burr Financial Services LLC bought a new stake in Cloudflare, Inc. (NYSE:NET – Free Report) during the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 4,360 shares of the company’s stock, valued at approximately $1,514,000. Cloudflare accounts for approximately 0.9% of Burr Financial Services LLC’s portfolio, making the stock its 18th biggest position.
Several other institutional investors and hedge funds have also bought and sold shares of the company. Cornerstone Financial Management LLC grew its position in shares of Cloudflare by 65.3% during the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock worth $29,000 after purchasing an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. bought a new position in Cloudflare in the 2nd quarter worth approximately $30,000. CX Institutional grew its holdings in Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after buying an additional 44 shares in the last quarter. Cape Investment Advisory Inc. bought a new stake in shares of Cloudflare during the second quarter valued at approximately $33,000. Finally, Ancora Advisors LLC purchased a new position in shares of Cloudflare in the second quarter worth $33,000. 82.68% of the stock is owned by hedge funds and other institutional investors.
Insider Activity
In related news, CEO Matthew Prince sold 52,383 shares of Cloudflare stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $283.42, for a total transaction of $14,846,389.86. 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, insider Michelle Zatlyn sold 33,003 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $294.63, for a total transaction of $9,723,673.89. Following the completion of the transaction, the insider directly owned 69,775 shares of the company’s stock, valued at $20,557,808.25. This trade represents a 32.11% decrease in their position. 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. Over the last ninety days, insiders have sold 458,839 shares of company stock worth $138,172,392. Corporate insiders own 10.66% of the company’s stock.
Key Cloudflare News
- Positive Sentiment: Basin could become a new growth driver. Cloudflare’s newly launched data platform supports serverless analytics and AI workloads, uses open data formats, and avoids cross-cloud transfer fees. The product could expand Cloudflare’s addressable market and improve the economics of managing data for AI applications. Cloudflare’s Data Platform Expands: Is Basin the Next Growth Driver?
- Positive Sentiment: Investors continue to view Cloudflare as an AI-traffic beneficiary. Commentary highlighted the company’s positioning as AI agents generate more internet traffic, with Cloudflare’s network performance and security services potentially benefiting from that structural trend. Jim Cramer Loves Cloudflare, but There’s a Catch
- Positive Sentiment: Recent operating results support the growth narrative. Cloudflare’s latest reported revenue rose 35.9% year over year to approximately $696.1 million, exceeding estimates, while adjusted EPS also topped consensus. Management guided to $0.34 in third-quarter 2026 EPS and $1.25–$1.26 for the full year.
- Neutral Sentiment: Analyst sentiment remains broadly favorable, but investors are urged to be selective. The average brokerage recommendation is equivalent to Buy, although the report cautions that optimistic sell-side ratings may be less informative for a richly valued growth stock. Brokers Suggest Investing in Cloudflare
- Negative Sentiment: Valuation is a significant risk. Cloudflare has rallied about 28% over the past month and trades at exceptionally high growth multiples, prompting Jim Cramer to praise its AI potential while cautioning against buying at the current valuation. Further gains may therefore depend on continued execution and accelerating earnings growth. Jim Cramer Loves Cloudflare, but There’s a Catch
- Negative Sentiment: Insider selling adds a cautionary signal. Co-founder and President Michelle Zatlyn sold 33,003 shares each on October 5 and October 7 for roughly $23.1 million combined, reducing her holdings by 32.11%. Both transactions were conducted under a pre-arranged Rule 10b5-1 plan, which lessens their significance as a discretionary bearish signal, but the sales can still weigh on sentiment.
Analyst Ratings Changes
A number of brokerages have issued reports on NET. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a report on Friday, July 17th. Raymond James Financial assumed coverage on Cloudflare in a research report on Tuesday, July 7th. They set a “strong-buy” rating for the company. Needham & Company LLC increased their price target on Cloudflare from $280.00 to $380.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Morgan Stanley reaffirmed an “overweight” rating and issued a $370.00 price objective on shares of Cloudflare in a research note on Friday, August 7th. Finally, Royal Bank Of Canada increased their target price on Cloudflare from $290.00 to $346.00 and gave the company an “outperform” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $326.33.
Read Our Latest Stock Report on Cloudflare
Cloudflare Trading Down 0.1%
NYSE NET traded down $0.18 during trading on Thursday, hitting $342.79. The stock had a trading volume of 961,748 shares, compared to its average volume of 4,088,193. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $370.35. The company has a debt-to-equity ratio of 1.22, a quick ratio of 1.82 and a current ratio of 1.82. The stock has a market capitalization of $121.17 billion, a price-to-earnings ratio of -589.75, a P/E/G ratio of 282.35 and a beta of 1.65. The stock has a 50 day simple moving average of $313.26 and a 200 day simple moving average of $258.43.
Cloudflare (NYSE:NET – Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate of $0.27 by $0.02. The company had revenue of $696.06 million for the quarter, compared to the consensus estimate of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.Cloudflare’s quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.21 EPS. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Sell-side analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current year.
Cloudflare Profile
Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.
The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.
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