Capital World Investors Reduces Stake in Cloudflare, Inc. $NET

Capital World Investors lowered its stake in Cloudflare, Inc. (NYSE:NET) by 11.6% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 35,825,517 shares of the company’s stock after selling 4,689,869 shares during the period. Cloudflare makes up approximately 1.0% of Capital World Investors’ investment portfolio, making the stock its 23rd biggest position. Capital World Investors owned 10.23% of Cloudflare worth $7,063,158,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in NET. Norges Bank purchased a new position in Cloudflare in the fourth quarter worth about $718,316,000. Jennison Associates LLC grew its position in Cloudflare by 802.6% in the fourth quarter. Jennison Associates LLC now owns 1,863,612 shares of the company’s stock worth $367,411,000 after acquiring an additional 1,657,144 shares in the last quarter. Groupama Asset Managment grew its position in Cloudflare by 82.6% in the third quarter. Groupama Asset Managment now owns 2,100,000 shares of the company’s stock worth $450,639,000 after acquiring an additional 950,000 shares in the last quarter. Vanguard Group Inc. grew its position in Cloudflare by 2.6% in the third quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company’s stock worth $6,934,958,000 after acquiring an additional 821,684 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA grew its position in Cloudflare by 25.8% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company’s stock worth $323,259,000 after acquiring an additional 336,768 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare Stock Down 6.8%

Shares of NYSE NET opened at $250.35 on Friday. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The firm has a market capitalization of $88.49 billion, a price-to-earnings ratio of -1,001.40 and a beta of 1.70. The stock has a 50 day moving average price of $213.32 and a 200 day moving average price of $200.38. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $276.82.

Cloudflare (NYSE:NET) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. Cloudflare’s revenue for the quarter was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Wall Street Analysts Forecast Growth

Several research firms recently commented on NET. Citigroup began coverage on Cloudflare in a research report on Wednesday, April 15th. They issued a “buy” rating for the company. Needham & Company LLC dropped their price target on Cloudflare from $285.00 to $250.00 and set a “buy” rating for the company in a research report on Wednesday, February 11th. Piper Sandler reiterated an “overweight” rating and issued a $250.00 price target (up from $222.00) on shares of Cloudflare in a research report on Friday, May 8th. BTIG Research restated a “buy” rating and set a $243.00 target price on shares of Cloudflare in a research report on Friday, May 8th. Finally, DZ Bank upgraded Cloudflare from a “hold” rating to a “buy” rating and set a $215.00 target price for the company in a research report on Friday, February 13th. Eighteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $239.08.

Insider Activity at Cloudflare

In other Cloudflare news, CFO Thomas J. Seifert sold 10,000 shares of the company’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $200.61, for a total transaction of $2,006,100.00. Following the completion of the sale, the chief financial officer owned 212,014 shares in the company, valued at $42,532,128.54. This represents a 4.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $210.66, for a total value of $11,035,213.44. Following the sale, the chief executive officer owned 25,550 shares of the company’s stock, valued at approximately $5,382,363. This represents a 67.22% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 527,491 shares of company stock valued at $111,729,711 over the last 90 days. Insiders own 10.89% of the company’s stock.

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.