Royal Fund Management LLC Has $1.01 Million Stock Position in Cloudflare, Inc. $NET

Royal Fund Management LLC lowered its stake in Cloudflare, Inc. (NYSE:NET) by 72.1% during the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 4,100 shares of the company’s stock after selling 10,600 shares during the period. Royal Fund Management LLC’s holdings in Cloudflare were worth $1,006,000 as of its most recent filing with the SEC.

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

Insider Activity

In other news, Director Mark J. Hawkins sold 133 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $277.74, for a total value of $36,939.42. Following the completion of the sale, the director directly owned 10,632 shares of the company’s stock, valued at approximately $2,952,931.68. This represents a 1.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible 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 the 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. 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 worth $184,648,633 over the last 90 days. 10.66% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of analysts recently weighed in on NET shares. Morgan Stanley restated an “overweight” rating and set a $370.00 target price on shares of Cloudflare in a research note on Friday, August 7th. Raymond James Financial assumed coverage on shares of Cloudflare in a report on Tuesday, July 7th. They set a “strong-buy” rating for the company. Sanford C. Bernstein reissued a “market perform” rating and issued a $136.00 price objective on shares of Cloudflare in a research report on Wednesday, June 10th. The Goldman Sachs Group restated a “buy” rating and issued a $389.00 price objective on shares of Cloudflare in a report on Friday, August 7th. Finally, UBS Group boosted their target price on shares of Cloudflare from $250.00 to $350.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have assigned a Hold rating and four have issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $320.19.

Cloudflare Trading Up 1.5%

NET opened at $311.48 on Thursday. The company has a quick ratio of 1.82, a current ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $324.73. The business’s 50 day moving average is $259.43 and its two-hundred day moving average is $221.96. The firm has a market cap of $110.10 billion, a price-to-earnings ratio of -537.03, a price-to-earnings-growth ratio of 189.82 and a beta of 1.65.

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 the consensus estimate 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%.The company’s revenue was up 35.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.21 earnings per share. On average, research analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current year.

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.