SlateStone Wealth LLC Reduces Position in Cloudflare, Inc. $NET

SlateStone Wealth LLC decreased its stake in shares of Cloudflare, Inc. (NYSE:NET) by 40.4% during the second quarter, HoldingsChannel reports. The firm owned 5,978 shares of the company’s stock after selling 4,046 shares during the quarter. SlateStone Wealth LLC’s holdings in Cloudflare were worth $1,466,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Lingotto Investment Management LLP acquired a new stake in Cloudflare in the fourth quarter valued at about $34,626,000. Jupiter Asset Management Ltd. raised its stake in Cloudflare by 1,984.7% during the fourth quarter. Jupiter Asset Management Ltd. now owns 197,710 shares of the company’s stock worth $38,979,000 after acquiring an additional 188,226 shares in the last quarter. Trek Financial LLC acquired a new position in Cloudflare during the fourth quarter worth about $1,793,000. Pictet Asset Management Holding SA lifted its holdings in shares of Cloudflare by 17.6% in the first quarter. Pictet Asset Management Holding SA now owns 1,381,985 shares of the company’s stock worth $284,900,000 after acquiring an additional 206,506 shares during the last quarter. Finally, Thrivent Financial for Lutherans acquired a new stake in shares of Cloudflare in the 4th quarter valued at approximately $5,543,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Insider Buying and Selling

In other news, CFO Thomas J. Seifert sold 55,000 shares of the firm’s stock in a transaction dated 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 completion of the transaction, the chief financial officer directly owned 113,790 shares in the company, valued at $34,171,137. This trade represents a 32.58% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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, Director Mark J. Hawkins sold 133 shares of Cloudflare stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $277.74, for a total value of $36,939.42. Following the completion of the transaction, the director directly owned 10,632 shares in the company, valued at approximately $2,952,931.68. This represents a 1.24% decrease in their ownership of the stock. 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 have sold 752,052 shares of company stock valued at $184,648,633. Corporate insiders own 10.66% of the company’s stock.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong second-quarter results support the rally. Cloudflare reported revenue of approximately $696.1 million, up 35.9% year over year and above expectations, while non-GAAP EPS of $0.29 exceeded consensus. Next-quarter revenue guidance of $736.5 million also topped analyst estimates, reinforcing confidence in continued growth. Cloudflare Q2 Deep Dive
• Positive Sentiment: AI security and enterprise demand are strengthening the growth story. Cloudflare’s AI-security strategy is supporting demand for SASE and Zero Trust products, while its agentic-AI and developer-platform offerings could help it win larger enterprise contracts and compete more directly with Palo Alto Networks and Zscaler. Cloudflare AI Security Strategy
• Positive Sentiment: New partnerships and government certifications expand Cloudflare’s addressable market. Signal selected Cloudflare as an independent Key Transparency auditor, adding credibility to Cloudflare’s privacy and security platform. Separately, FedRAMP High and GovRAMP Moderate authorizations position Cloudflare to pursue more government and regulated-industry contracts. Signal Partnership
• Neutral Sentiment: Analyst sentiment remains favorable but expectations are high. Cloudflare has a consensus “Moderate Buy” rating and an average target near $320, with several firms setting targets above that level. However, some target increases still imply limited upside after the stock’s substantial recent advance. Cloudflare Moderate Buy Rating
• Negative Sentiment: The $2.175 billion zero-coupon convertible-note offering creates a potential dilution overhang. The financing provides capital without cash interest payments, but conversions could dilute existing shareholders and increase future obligations. Cloudflare Convertible Notes Deal
• Negative Sentiment: Valuation and profitability remain risks. Cloudflare continues to post GAAP losses, and its premium valuation leaves the stock vulnerable if growth or margins disappoint. A director’s sale of 2,520 shares was conducted under a pre-arranged Rule 10b5-1 plan and is a relatively minor overhang. SEC Insider Transaction Filing

Analyst Ratings Changes

Several equities analysts recently commented on NET shares. Raymond James Financial initiated coverage on shares of Cloudflare in a research note on Tuesday, July 7th. They issued a “strong-buy” rating for the company. Zacks Research upgraded Cloudflare from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Truist Financial raised their price objective on Cloudflare from $300.00 to $350.00 and gave the company a “buy” rating in a report on Friday, August 7th. Needham & Company LLC boosted their price objective on Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Finally, Robert W. Baird set a $330.00 target price on Cloudflare in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have given a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Cloudflare currently has an average rating of “Moderate Buy” and an average price target of $320.19.

Cloudflare Price Performance

Shares of NYSE:NET opened at $311.48 on Thursday. The firm has a market cap of $110.10 billion, a PE ratio of -537.03, a price-to-earnings-growth ratio of 189.82 and a beta of 1.65. The firm’s fifty day moving average is $259.43 and its 200-day moving average is $221.96. 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 52 week low of $158.83 and a 52 week high of $324.73.

Cloudflare (NYSE:NET) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $0.29 earnings per share for the quarter, beating analysts’ consensus estimates of $0.27 by $0.02. The business had revenue of $696.06 million during 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 period in the prior year, the business posted $0.21 earnings per share. Sell-side analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

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.