Prescott Group Capital Management L.L.C. Sells 7,446 Shares of Cloudflare, Inc. $NET

Prescott Group Capital Management L.L.C. lessened its holdings in shares of Cloudflare, Inc. (NYSE:NET) by 15.1% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 41,949 shares of the company’s stock after selling 7,446 shares during the period. Cloudflare accounts for approximately 1.3% of Prescott Group Capital Management L.L.C.’s investment portfolio, making the stock its 12th biggest position. Prescott Group Capital Management L.L.C.’s holdings in Cloudflare were worth $14,568,000 as of its most recent SEC filing.

Other hedge funds also recently bought and sold shares of the company. GK Wealth Management LLC acquired a new position in shares of Cloudflare during the 3rd quarter worth approximately $25,000. Toth Financial Advisory Corp acquired a new stake in shares of Cloudflare in the third quarter valued at approximately $36,000. Cornerstone Financial Management LLC increased its holdings in shares of Cloudflare by 65.3% in the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. acquired a new stake in shares of Cloudflare in the second quarter valued at approximately $30,000. Finally, CX Institutional lifted its position in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after buying an additional 44 shares in the last quarter. Institutional investors and hedge funds own 82.68% of the company’s stock.

Insider Buying and Selling

In related news, insider Michelle Zatlyn sold 33,003 shares of the business’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total value of $11,494,614.87. Following the sale, the insider directly owned 69,775 shares in the company, valued at approximately $24,301,934.75. The trade was a 32.11% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Thomas Seifert sold 12,500 shares of the stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the transaction, the chief financial officer directly owned 104,958 shares of the company’s stock, valued at approximately $31,444,367.22. This trade represents a 10.64% decrease in their position. 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. In the last ninety days, insiders sold 264,057 shares of company stock valued at $80,926,805. 10.66% of the stock is currently owned by insiders.

Cloudflare Price Performance

NET stock opened at $273.17 on Wednesday. The business has a fifty day moving average of $320.06 and a two-hundred day moving average of $248.60. 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 stock has a market cap of $96.56 billion, a price-to-earnings ratio of -470.98, a price-to-earnings-growth ratio of 210.90 and a beta of 1.37. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $370.35.

Cloudflare (NYSE:NET) last announced its quarterly 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. The business had revenue of $696.06 million for the quarter, compared to analyst estimates 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 quarterly revenue was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.21 EPS. As a group, research analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: JPMorgan raised its rating from Neutral to Overweight and set a $350 price target, citing an appealing entry point after the stock’s roughly 26% decline over the previous month and potential for faster revenue growth. JPMorgan upgrades Cloudflare after selloff
• Neutral Sentiment: Cloudflare’s November 5 earnings report is the next key catalyst. Investors will assess demand for its AI, Workers and security products, as well as whether growth can support its valuation. Cloudflare earnings date
• Negative Sentiment: Jefferies lowered its price target from $350 to $320 and maintained a Hold rating, signaling less upside than its prior forecast. Jefferies lowers Cloudflare price target
• Negative Sentiment: Valuation remains a concern: bearish analysts argue that the share price assumes substantial future margin expansion and AI monetization, while profitability and cash generation have yet to justify that premium. Cloudflare has also retreated from its October high amid pressure on expensive software and AI stocks. Cloudflare earnings and valuation analysis

Analyst Upgrades and Downgrades

A number of research firms have weighed in on NET. Deutsche Bank Aktiengesellschaft raised Cloudflare to a “buy” rating in a research note on Tuesday, July 7th. KeyCorp lifted their price target on Cloudflare from $300.00 to $375.00 and gave the stock an “overweight” rating in a report on Friday, August 7th. Barclays boosted their price target on shares of Cloudflare from $355.00 to $400.00 and gave the company an “overweight” rating in a research report on Monday, October 12th. Fox Advisors lowered shares of Cloudflare to a “neutral” rating in a report on Tuesday. Finally, Needham & Company LLC raised their price objective on shares of Cloudflare from $280.00 to $380.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Twenty-four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $333.21.

Cloudflare Company Profile

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.