Rakuten Investment Management Inc. grew its holdings in Cloudflare, Inc. (NYSE:NET – Free Report) by 14.2% in the third quarter, HoldingsChannel.com reports. The institutional investor owned 20,392 shares of the company’s stock after buying an additional 2,540 shares during the quarter. Rakuten Investment Management Inc.’s holdings in Cloudflare were worth $7,183,000 at the end of the most recent reporting period.
Several other institutional investors have also recently bought and sold shares of NET. GK Wealth Management LLC bought a new stake in shares of Cloudflare during the third quarter worth $25,000. Cornerstone Financial Management LLC raised its position in shares of Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after acquiring an additional 47 shares during the period. C M Bidwell & Associates Ltd. bought a new position in shares of Cloudflare during the second quarter worth $30,000. CX Institutional lifted its holdings in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after acquiring an additional 44 shares in the last quarter. Finally, Cape Investment Advisory Inc. bought a new position in shares of Cloudflare during the 2nd quarter valued at about $33,000. Institutional investors own 82.68% of the company’s stock.
Analyst Ratings Changes
Several research analysts have recently weighed in on the company. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cloudflare in a research report on Thursday, October 15th. Sanford C. Bernstein lifted their price objective on shares of Cloudflare from $181.00 to $245.00 and gave the company a “market perform” rating in a research report on Thursday, October 29th. Raymond James Financial lowered Cloudflare from a “strong-buy” rating to an “underperform” rating in a report on Tuesday. Mizuho upped their price target on shares of Cloudflare from $260.00 to $310.00 and gave the company an “outperform” rating in a research note on Wednesday, July 15th. Finally, Morgan Stanley assumed coverage on Cloudflare in a research report on Tuesday. They set an “overweight” rating on the stock. Twenty-four research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $333.21.
Get Our Latest Analysis on Cloudflare
Key Stories Impacting Cloudflare
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cloudflare reported quarterly earnings of $0.38 per share, above analyst estimates, while revenue rose 39.2% year over year to $782.51 million and also topped expectations. Zacks earnings article
- Positive Sentiment: The company raised its full-year revenue outlook to about $2.96 billion, up from its prior range of $2.86 billion to $2.87 billion, signaling confidence in continued growth. Wall Street Journal outlook article
- Neutral Sentiment: Cloudflare appointed Christian Smith as President of Revenue to lead its worldwide go-to-market organization and support its growth ambitions. Appointment announcement
- Negative Sentiment: Cloudflare fell alongside other cybersecurity stocks amid a broader pullback in AI-related shares, suggesting sector-wide selling contributed to the decline. TIKR market article
- Negative Sentiment: Valuation concerns and recent share-price weakness had weighed on sentiment ahead of earnings. This may help explain why strong results and guidance did not prevent a pullback. Invezz article
Insider Activity
In related news, Director Carl Ledbetter sold 5,000 shares of the stock in a transaction on Monday, September 14th. The shares were sold at an average price of $312.22, for a total transaction of $1,561,100.00. Following the transaction, the director directly owned 878,073 shares of the company’s stock, valued at $274,151,952.06. This represents a 0.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas J. Seifert sold 12,500 shares of the stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the transaction, the chief financial officer directly owned 104,958 shares in the company, valued at $31,444,367.22. This trade represents a 10.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 259,057 shares of company stock valued at $79,516,905 in the last ninety days. 10.66% of the stock is owned by company insiders.
Cloudflare Stock Down 8.5%
Shares of NYSE:NET opened at $243.79 on Friday. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $370.35. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. The firm has a market cap of $86.17 billion, a P/E ratio of -420.32, a P/E/G ratio of 206.44 and a beta of 1.37. The business has a fifty day simple moving average of $319.02 and a 200 day simple moving average of $249.31.
Cloudflare (NYSE:NET – Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.38 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.04. The company had revenue of $782.51 million for the quarter, compared to analyst estimates of $737.16 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%. The firm’s quarterly revenue was up 39.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.27 earnings per share. Analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current year.
About Cloudflare
Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.
The company’s offerings include content delivery and authoritative 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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