Sumitomo Mitsui Trust Group Inc. Decreases Stake in Cloudflare, Inc. $NET

Sumitomo Mitsui Trust Group Inc. reduced its stake in Cloudflare, Inc. (NYSE:NET) by 0.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,396,266 shares of the company’s stock after selling 11,665 shares during the period. Sumitomo Mitsui Trust Group Inc.’s holdings in Cloudflare were worth $273,431,000 at the end of the most recent reporting period.

Several other hedge funds have also recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Cloudflare by 1.8% during the first quarter. Vanguard Group Inc. now owns 30,836,909 shares of the company’s stock valued at $3,475,011,000 after buying an additional 538,850 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Cloudflare by 33.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company’s stock worth $352,610,000 after acquiring an additional 786,063 shares in the last quarter. American Century Companies Inc. boosted its holdings in Cloudflare by 34.5% in the first quarter. American Century Companies Inc. now owns 3,037,420 shares of the company’s stock worth $342,287,000 after acquiring an additional 779,819 shares in the last quarter. Northern Trust Corp boosted its holdings in Cloudflare by 1.7% in the first quarter. Northern Trust Corp now owns 1,880,888 shares of the company’s stock worth $211,957,000 after acquiring an additional 31,745 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its holdings in Cloudflare by 8.1% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,321,208 shares of the company’s stock worth $148,887,000 after acquiring an additional 99,448 shares in the last quarter. 82.68% of the stock is owned by hedge funds and other institutional investors.

Cloudflare Stock Up 0.4%

Cloudflare stock opened at $218.10 on Friday. The stock has a market cap of $76.00 billion, a PE ratio of -641.46 and a beta of 1.99. The company has a debt-to-equity ratio of 2.63, a quick ratio of 5.14 and a current ratio of 5.14. Cloudflare, Inc. has a one year low of $85.60 and a one year high of $230.10. The stock has a fifty day moving average of $214.12 and a 200 day moving average of $182.02.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of $0.18 by $0.03. The business had revenue of $512.32 million during the quarter, compared to analysts’ expectations of $501.58 million. Cloudflare had a negative return on equity of 8.42% and a negative net margin of 6.22%.The business’s quarterly revenue was up 27.8% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.20 earnings per share. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, sell-side analysts predict that Cloudflare, Inc. will post -0.11 EPS for the current year.

Insiders Place Their Bets

In other Cloudflare news, CEO Matthew Prince sold 52,277 shares of the company’s stock in a transaction dated Thursday, October 16th. The stock was sold at an average price of $213.94, for a total value of $11,184,141.38. Following the completion of the sale, the chief executive officer owned 107 shares in the company, valued at $22,891.58. This represents a 99.80% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CFO Thomas J. Seifert sold 10,000 shares of the company’s stock in a transaction dated Monday, October 20th. The stock was sold at an average price of $211.81, for a total value of $2,118,100.00. Following the completion of the sale, the chief financial officer owned 189,517 shares of the company’s stock, valued at approximately $40,141,595.77. The trade was a 5.01% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 708,670 shares of company stock valued at $147,000,646. 10.89% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have commented on the company. JMP Securities boosted their target price on Cloudflare from $180.00 to $225.00 and gave the stock a “market outperform” rating in a report on Monday, July 28th. Mizuho upped their price target on Cloudflare from $220.00 to $240.00 and gave the company an “outperform” rating in a report on Friday, August 1st. Stifel Nicolaus upped their price target on Cloudflare from $175.00 to $230.00 and gave the company a “buy” rating in a report on Friday, August 1st. DZ Bank reaffirmed a “sell” rating and set a $170.00 price target on shares of Cloudflare in a report on Tuesday, July 22nd. Finally, Citigroup upped their price target on Cloudflare from $240.00 to $255.00 and gave the company a “buy” rating in a report on Monday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Cloudflare has a consensus rating of “Moderate Buy” and an average price target of $198.21.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.