Cloudflare, Inc. $NET Shares Sold by Sterling Capital Management LLC

Sterling Capital Management LLC lessened its stake in shares of Cloudflare, Inc. (NYSE:NET) by 38.4% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 7,891 shares of the company’s stock after selling 4,921 shares during the quarter. Sterling Capital Management LLC’s holdings in Cloudflare were worth $2,740,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. XXI Wealth LLC purchased a new position in Cloudflare during the third quarter worth about $275,000. Yousif Capital Management LLC boosted its holdings in Cloudflare by 5.3% in the 3rd quarter. Yousif Capital Management LLC now owns 4,518 shares of the company’s stock valued at $1,569,000 after purchasing an additional 226 shares in the last quarter. BIP Wealth LLC boosted its holdings in Cloudflare by 36.9% in the 3rd quarter. BIP Wealth LLC now owns 1,333 shares of the company’s stock valued at $463,000 after purchasing an additional 359 shares in the last quarter. MBL Wealth LLC purchased a new stake in Cloudflare in the 3rd quarter valued at approximately $1,543,000. Finally, Root Financial Partners LLC increased its position in Cloudflare by 26.7% during the 3rd quarter. Root Financial Partners LLC now owns 1,247 shares of the company’s stock worth $433,000 after purchasing an additional 263 shares during the period. 82.68% of the stock is owned by institutional investors and hedge funds.

Cloudflare Trading Down 0.0%

NET stock opened at $325.68 on Monday. 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 company has a market cap of $115.12 billion, a price-to-earnings ratio of -561.52, a PEG ratio of 259.07 and a beta of 1.65. The business has a fifty day simple moving average of $318.54 and a 200-day simple moving average of $267.87. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $370.35.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, beating the consensus estimate 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 last year, the business posted $0.21 EPS. The company’s revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. On average, equities research analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current year.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloud stocks are rebounding: Cloudflare is benefiting from a broader recovery in cloud-software shares, with investors especially favoring companies that secure and keep applications running. Cloudflare Climbs as Cloud Stocks Rebound
• Positive Sentiment: PHP security crisis highlights demand for Cloudflare: The company reported millions of attempted exploits after critical PHP vulnerabilities were disclosed. The heightened threat environment reinforces the need for Cloudflare’s web-security and protective services and has helped lift cybersecurity stocks. Cloudflare sees millions of exploit attempts after PHP disclosure
• Positive Sentiment: Growth outlook remains attractive to some investors: Brown Advisory cited accelerating growth at Cloudflare, while a bullish analyst view argued that AI-driven traffic, bot verification, and enterprise adoption could provide substantial long-term expansion opportunities. Brown Advisory Sees Accelerating Growth at Cloudflare
• Neutral Sentiment: Valuation is a key risk: Cloudflare’s multiyear share-price gains have significantly outpaced its sales growth, leaving the stock valued at a rich sales premium. That can support momentum but makes the shares sensitive to any slowdown in growth or weaker guidance. Cloudflare Stock May Trade at a Rich Sales Premium
• Negative Sentiment: Execution concerns remain: Commentary has pointed to potentially misleading AI-agent enthusiasm, declining gross margins, and a reported workforce reduction, factors that could temper the bullish narrative if they pressure profitability or revenue quality. PHP Flaws Set Off Cyber Alarm

Analyst Upgrades and Downgrades

NET has been the subject of several recent analyst reports. Robert W. Baird set a $330.00 price target on Cloudflare in a report on Friday, August 7th. Citigroup reaffirmed a “market outperform” rating on shares of Cloudflare in a report on Monday, August 31st. DZ Bank cut Cloudflare from a “strong-buy” rating to a “strong sell” rating in a research report on Friday, August 7th. UBS Group raised their target price on Cloudflare from $250.00 to $350.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Finally, Royal Bank Of Canada boosted their target price on shares of Cloudflare from $290.00 to $346.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have issued a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $330.59.

Insiders Place Their Bets

In other Cloudflare news, CFO Thomas J. Seifert sold 12,500 shares of the company’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $299.59, for a total value of $3,744,875.00. Following the completion of the transaction, the chief financial officer owned 104,958 shares in the company, valued at approximately $31,444,367.22. This represents a 10.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Carl Ledbetter sold 5,000 shares of the company’s stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $304.40, for a total transaction of $1,522,000.00. Following the completion of the transaction, the director owned 868,073 shares of the company’s stock, valued at approximately $264,241,421.20. This trade represents a 0.57% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 476,339 shares of company stock valued at $143,439,267 over the last three months. Company insiders own 10.66% of the company’s stock.

About Cloudflare

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.