Oak Thistle LLC Takes Position in Cloudflare, Inc. $NET

Oak Thistle LLC bought a new position in Cloudflare, Inc. (NYSE:NET) during the 2nd quarter, Holdings Channel reports. The fund bought 9,003 shares of the company’s stock, valued at approximately $2,208,000.

Other hedge funds also recently bought and sold shares of the company. Vanguard Group Inc. raised its position in Cloudflare by 0.3% during the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock valued at $6,389,167,000 after purchasing an additional 90,397 shares during the last quarter. Geode Capital Management LLC boosted its holdings in Cloudflare by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock valued at $1,184,044,000 after acquiring an additional 241,981 shares in the last quarter. Jennison Associates LLC increased its position in Cloudflare by 135.8% during the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock valued at $906,758,000 after purchasing an additional 2,530,872 shares during the period. First Trust Advisors LP raised its holdings in Cloudflare by 1.6% in the 4th quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock worth $792,377,000 after purchasing an additional 63,198 shares in the last quarter. Finally, Invesco Ltd. lifted its position in shares of Cloudflare by 1.3% in the 3rd 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 during the period. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare News Roundup

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

Cloudflare Stock Up 1.5%

Shares of NYSE:NET opened at $311.48 on Thursday. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The stock has a fifty day simple moving average of $259.43 and a two-hundred day simple moving average of $221.96. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $324.73. The stock has a market capitalization of $110.10 billion, a price-to-earnings ratio of -537.03, a PEG ratio of 189.82 and a beta of 1.65.

Cloudflare (NYSE:NET) last released its earnings results on Wednesday, August 5th. The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. The firm had revenue of $696.06 million for the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The company’s quarterly revenue was up 35.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.21 earnings per share. On average, research analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Insider Activity at Cloudflare

In other Cloudflare news, Director John Graham-Cumming sold 2,520 shares of the firm’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $303.97, for a total transaction of $766,004.40. Following the completion of the sale, the director directly owned 494,909 shares in the company, valued at approximately $150,437,488.73. This trade represents a 0.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 33,631 shares of Cloudflare stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $296.10, for a total transaction of $9,958,139.10. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 752,052 shares of company stock worth $184,648,633 in the last ninety days. 10.66% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on NET shares. TD Cowen lifted their target price on shares of Cloudflare from $300.00 to $355.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Wells Fargo & Company increased their price target on shares of Cloudflare from $300.00 to $380.00 and gave the stock an “overweight” rating in a research note on Friday, August 7th. Citigroup raised their price objective on shares of Cloudflare from $265.00 to $400.00 and gave the stock a “buy” rating in a report on Monday. Oppenheimer upped their target price on Cloudflare from $330.00 to $380.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Finally, Citizens Jmp increased their target price on Cloudflare from $330.00 to $394.00 and gave the stock a “market outperform” rating in a research report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $320.19.

Cloudflare 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.