Cloudflare, Inc. $NET Shares Sold by Capital World Investors

Capital World Investors cut its holdings in shares of Cloudflare, Inc. (NYSE:NET) by 11.6% during the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 35,825,517 shares of the company’s stock after selling 4,689,869 shares during the period. Cloudflare accounts for approximately 1.0% of Capital World Investors’ investment portfolio, making the stock its 23rd biggest holding. Capital World Investors owned about 0.10% of Cloudflare worth $7,063,158,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the business. Vanguard Group Inc. increased its position in shares of Cloudflare by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock worth $6,389,167,000 after purchasing an additional 90,397 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Cloudflare by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock worth $1,184,044,000 after purchasing an additional 241,981 shares in the last quarter. Invesco Ltd. increased its position in shares of Cloudflare by 1.3% during the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after purchasing an additional 49,485 shares in the last quarter. Norges Bank acquired a new position in shares of Cloudflare during the fourth quarter worth $718,316,000. Finally, Legal & General Group Plc increased its position in shares of Cloudflare by 4.9% during the fourth quarter. Legal & General Group Plc now owns 2,824,772 shares of the company’s stock worth $556,904,000 after purchasing an additional 131,127 shares in the last quarter. 82.68% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Cloudflare news, insider Alissa Michelle Starzak sold 16,243 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $216.15, for a total value of $3,510,924.45. Following the sale, the insider directly owned 118,395 shares of the company’s stock, valued at approximately $25,591,079.25. This represents a 12.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Janel Riley sold 3,481 shares of the company’s stock in a transaction on Monday, May 18th. The shares were sold at an average price of $193.32, for a total transaction of $672,946.92. Following the completion of the sale, the chief accounting officer directly owned 49,163 shares in the company, valued at approximately $9,504,191.16. The trade was a 6.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 527,491 shares of company stock valued at $111,729,711 in the last 90 days. 10.89% of the stock is currently owned by insiders.

Cloudflare Price Performance

NYSE NET opened at $250.35 on Friday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The stock’s fifty day moving average price is $213.32 and its 200 day moving average price is $200.38. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $276.82. The company has a market cap of $88.49 billion, a price-to-earnings ratio of -1,001.40 and a beta of 1.70.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The company had revenue of $639.76 million for the quarter, compared to analyst estimates of $620.83 million. During the same period in the prior year, the company earned $0.16 earnings per share. The firm’s revenue was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Wall Street Analyst Weigh In

NET has been the topic of a number of recent analyst reports. Scotiabank reduced their price target on Cloudflare from $255.00 to $225.00 and set a “sector perform” rating on the stock in a research report on Wednesday, February 11th. Morgan Stanley reissued an “overweight” rating and issued a $305.00 target price on shares of Cloudflare in a research report on Thursday. Barclays reissued an “overweight” rating and issued a $250.00 target price on shares of Cloudflare in a research report on Monday, June 1st. Piper Sandler reissued an “overweight” rating and issued a $250.00 target price (up from $222.00) on shares of Cloudflare in a research report on Friday, May 8th. Finally, UBS Group reissued a “neutral” rating and issued a $220.00 target price on shares of Cloudflare in a research report on Wednesday, February 11th. Eighteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $239.08.

Cloudflare Company Profile

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.