5,911 Shares in Cloudflare, Inc. $NET Acquired by Gateway Investment Advisers LLC

Gateway Investment Advisers LLC bought a new stake in Cloudflare, Inc. (NYSE:NET) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor bought 5,911 shares of the company’s stock, valued at approximately $1,450,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in NET. Interchange Capital Partners LLC acquired a new position in shares of Cloudflare in the 2nd quarter worth approximately $228,000. Merit Financial Group LLC lifted its holdings in Cloudflare by 61.2% in the second quarter. Merit Financial Group LLC now owns 9,961 shares of the company’s stock valued at $2,443,000 after buying an additional 3,780 shares during the period. Global Financial Private Client LLC lifted its holdings in Cloudflare by 30.9% in the second quarter. Global Financial Private Client LLC now owns 1,618 shares of the company’s stock valued at $397,000 after buying an additional 382 shares during the period. KRS Capital Management LLC bought a new stake in Cloudflare during the second quarter valued at $236,000. Finally, Fortitude Family Office LLC boosted its position in Cloudflare by 53.7% during the second quarter. Fortitude Family Office LLC now owns 226 shares of the company’s stock valued at $55,000 after acquiring an additional 79 shares during the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.

Cloudflare Stock Performance

Shares of NET opened at $311.48 on Thursday. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $324.73. The company has a market cap of $110.10 billion, a PE ratio of -537.03, a P/E/G ratio of 189.82 and a beta of 1.65. The stock has a 50-day moving average of $259.43 and a 200-day moving average of $221.96. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82.

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

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

Wall Street Analysts Forecast Growth

NET has been the topic of a number of recent analyst reports. Citigroup boosted their price objective on Cloudflare from $265.00 to $400.00 and gave the company a “buy” rating in a research note on Monday. Stifel Nicolaus set a $260.00 target price on Cloudflare in a research note on Friday, May 8th. Guggenheim lifted their target price on Cloudflare from $140.00 to $160.00 and gave the stock a “sell” rating in a report on Friday, August 7th. Barclays boosted their price target on Cloudflare from $300.00 to $355.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Finally, New Street Research restated a “market outperform” rating on shares of Cloudflare in a report on Monday, June 15th. 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $320.19.

Insider Transactions at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 55,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $300.30, for a total transaction of $16,516,500.00. Following the completion of the sale, the chief financial officer owned 113,790 shares in the company, valued at approximately $34,171,137. The trade was a 32.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,422 shares of the business’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. 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. Insiders have sold 752,052 shares of company stock valued at $184,648,633 over the last ninety days. 10.66% of the stock is owned by company insiders.

About Cloudflare

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.