Cloudflare, Inc. $NET Shares Sold by Prescott Group Capital Management L.L.C.

Prescott Group Capital Management L.L.C. trimmed its position in shares of Cloudflare, Inc. (NYSE:NET) by 15.1% in the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 41,949 shares of the company’s stock after selling 7,446 shares during the quarter. Cloudflare accounts for approximately 1.3% of Prescott Group Capital Management L.L.C.’s investment portfolio, making the stock its 12th biggest position. Prescott Group Capital Management L.L.C.’s holdings in Cloudflare were worth $14,568,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the company. Andra AP fonden grew its stake in shares of Cloudflare by 44.5% in the second quarter. Andra AP fonden now owns 48,356 shares of the company’s stock worth $11,861,000 after acquiring an additional 14,900 shares in the last quarter. Plato Investment Management Ltd purchased a new position in Cloudflare in the second quarter worth approximately $1,499,000. Insight Holdings Group LLC acquired a new position in Cloudflare during the 1st quarter worth approximately $6,768,000. Independent Financial Group LLC acquired a new position in Cloudflare during the 1st quarter worth approximately $3,484,000. Finally, Capula Management Ltd grew its holdings in Cloudflare by 97.1% during the 1st quarter. Capula Management Ltd now owns 13,526 shares of the company’s stock worth $2,791,000 after acquiring an additional 6,662 shares in the last quarter. 82.68% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of brokerages have commented on NET. KeyCorp increased their price objective on shares of Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Citigroup reaffirmed a “market outperform” rating on shares of Cloudflare in a research report on Monday, August 31st. Oppenheimer started coverage on Cloudflare in a report on Tuesday. They issued an “outperform” rating on the stock. Sanford C. Bernstein increased their target price on Cloudflare from $181.00 to $245.00 and gave the company a “market perform” rating in a report on Thursday, October 29th. Finally, Benchmark cut Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. Twenty-four analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and six have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $333.21.

Insider Activity

In other news, insider Michelle Zatlyn sold 33,003 shares of Cloudflare stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $277.43, for a total transaction of $9,156,022.29. Following the sale, the insider owned 69,775 shares in the company, valued at approximately $19,357,678.25. The trade was a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of Cloudflare stock in a transaction dated Thursday, August 6th. The stock was sold at an average price of $281.98, for a total value of $1,409,900.00. Following the sale, the director owned 883,073 shares in the company, valued at $249,008,924.54. This trade represents a 0.56% 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. In the last quarter, insiders sold 264,057 shares of company stock worth $80,926,805. Corporate insiders own 10.66% of the company’s stock.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: JPMorgan raised its rating from Neutral to Overweight and set a $350 price target, citing an appealing entry point after the stock’s roughly 26% decline over the previous month and potential for faster revenue growth. JPMorgan upgrades Cloudflare after selloff
• Neutral Sentiment: Cloudflare’s November 5 earnings report is the next key catalyst. Investors will assess demand for its AI, Workers and security products, as well as whether growth can support its valuation. Cloudflare earnings date
• Negative Sentiment: Jefferies lowered its price target from $350 to $320 and maintained a Hold rating, signaling less upside than its prior forecast. Jefferies lowers Cloudflare price target
• Negative Sentiment: Valuation remains a concern: bearish analysts argue that the share price assumes substantial future margin expansion and AI monetization, while profitability and cash generation have yet to justify that premium. Cloudflare has also retreated from its October high amid pressure on expensive software and AI stocks. Cloudflare earnings and valuation analysis

Cloudflare Stock Performance

Shares of Cloudflare stock opened at $273.17 on Wednesday. The firm has a market capitalization of $96.56 billion, a P/E ratio of -470.98, a P/E/G ratio of 210.90 and a beta of 1.37. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week 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’s 50 day moving average is $320.06 and its two-hundred day moving average is $248.60.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. The company had revenue of $696.06 million for the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm’s revenue for the quarter was up 35.9% on a year-over-year basis. During the same quarter last year, the company earned $0.21 earnings per share. Research analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Cloudflare Profile

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.