Gateway Investment Advisers LLC Takes $1.45 Million Position in Cloudflare, Inc. $NET

Gateway Investment Advisers LLC bought a new stake in shares of Cloudflare, Inc. (NYSE:NET) during the 2nd quarter, HoldingsChannel.com reports. The fund bought 5,911 shares of the company’s stock, valued at approximately $1,450,000.

Several other institutional investors have also bought and sold shares of the stock. Norges Bank purchased a new position in Cloudflare during the 4th quarter worth $718,316,000. Jennison Associates LLC boosted its holdings in Cloudflare by 135.8% during the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock worth $906,758,000 after purchasing an additional 2,530,872 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in Cloudflare by 4,042.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company’s stock worth $275,887,000 after purchasing an additional 1,365,598 shares during the last quarter. Swedbank AB grew its position in Cloudflare by 697.5% in the 1st quarter. Swedbank AB now owns 927,606 shares of the company’s stock worth $191,402,000 after purchasing an additional 811,297 shares in the last quarter. Finally, National Pension Service grew its position in Cloudflare by 53.2% in the 4th quarter. National Pension Service now owns 948,003 shares of the company’s stock worth $186,899,000 after purchasing an additional 329,341 shares in the last quarter. Institutional investors own 82.68% of the company’s stock.

Insider Activity

In related news, CFO Thomas J. Seifert sold 55,000 shares of the business’s stock in a transaction on 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 sale, the chief financial officer directly owned 113,790 shares in the company, valued at approximately $34,171,137. The trade was a 32.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 52,422 shares of the company’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 752,052 shares of company stock worth $184,648,633. 10.66% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts recently commented on NET shares. Mizuho lifted their price target on Cloudflare from $260.00 to $310.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. Needham & Company LLC lifted their price target on shares of Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a report on Friday, August 7th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $389.00 price target on shares of Cloudflare in a report on Friday, August 7th. Robert W. Baird set a $330.00 price objective on Cloudflare in a report on Friday, August 7th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Cloudflare in a research report on Friday, July 17th. Two research 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 assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $320.19.

Cloudflare Stock Performance

NYSE NET opened at $311.48 on Thursday. The firm has a market cap of $110.10 billion, a P/E ratio of -537.03, a price-to-earnings-growth ratio of 189.82 and a beta of 1.65. 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’s 50 day moving average is $259.43 and its 200-day moving average is $221.96. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $324.73.

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

Key Cloudflare News

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 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.