Nicholas Investment Partners LP Decreases Stock Position in Cloudflare, Inc. $NET

Nicholas Investment Partners LP reduced its position in Cloudflare, Inc. (NYSE:NET) by 99.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 20,472 shares of the company’s stock after selling 4,225,000 shares during the quarter. Nicholas Investment Partners LP’s holdings in Cloudflare were worth $4,036,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of NET. Vanguard Group Inc. boosted its holdings in shares of Cloudflare by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock worth $6,389,167,000 after acquiring an additional 90,397 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Cloudflare by 4.2% in the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock worth $1,184,044,000 after acquiring an additional 241,981 shares during the period. First Trust Advisors LP boosted its holdings in shares of Cloudflare by 1.6% in the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock worth $792,377,000 after acquiring an additional 63,198 shares during the period. Invesco Ltd. boosted its holdings in shares of Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock worth $850,792,000 after acquiring an additional 49,485 shares during the period. Finally, Norges Bank bought a new position in shares of Cloudflare in the fourth quarter worth $718,316,000. 82.68% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other news, insider Alissa Michelle Starzak sold 16,243 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $216.15, for a total value of $3,510,924.45. Following the completion of the sale, the insider owned 118,395 shares of the company’s stock, valued at approximately $25,591,079.25. The trade was a 12.06% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Katrin Suder sold 293 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $252.92, for a total value of $74,105.56. Following the completion of the sale, the director directly owned 37,430 shares of the company’s stock, valued at approximately $9,466,795.60. This trade represents a 0.78% 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 a total of 527,784 shares of company stock worth $111,803,817 in the last 90 days. 10.89% of the stock is currently owned by company insiders.

Cloudflare Trading Up 0.2%

Shares of NET stock opened at $227.91 on Friday. The firm has a market cap of $80.56 billion, a P/E ratio of -911.62, a price-to-earnings-growth ratio of 774.17 and a beta of 1.70. The business has a 50-day moving average price of $216.10 and a two-hundred day moving average price of $201.68. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $276.82.

Cloudflare (NYSE:NET) last released its earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The company had revenue of $639.76 million during the quarter, compared to analyst estimates of $620.83 million. During the same quarter in the previous year, the company posted $0.16 EPS. Cloudflare’s revenue for the quarter was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. Equities analysts anticipate that Cloudflare, Inc. will post 0.01 EPS for the current fiscal year.

Key Headlines Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist Financial raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, implying further upside from current levels. Truist raises Cloudflare price target
• Positive Sentiment: Morgan Stanley also sharply increased its Cloudflare price target, adding to the bullish analyst backdrop and reinforcing the view that expectations for the company are improving. Morgan Stanley raises Cloudflare price target
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, while other reports noted Wall Street’s overall average recommendation remains equivalent to a Buy, supporting investor confidence in the stock. Barclays keeps buy rating on Cloudflare
• Positive Sentiment: Zacks said Cloudflare may be well poised for a surge because of solid earnings estimate revisions, which often signals improving fundamentals and stronger near-term sentiment. Zacks says Cloudflare may surge
• Neutral Sentiment: Jim Cramer commented that Cloudflare’s long-term direction looks “pretty fabulous,” but also noted the stock has been volatile, making the takeaway more of a commentary on long-term prospects than a direct catalyst. Jim Cramer comments on Cloudflare
• Negative Sentiment: One report flagged a new sell recommendation for Cloudflare, suggesting some analysts remain cautious despite the broader bullish tone. Cloudflare new sell recommendation

Analyst Ratings Changes

A number of equities analysts have recently commented on NET shares. BTIG Research raised their price target on Cloudflare from $243.00 to $269.00 and gave the stock a “buy” rating in a report on Wednesday. Morgan Stanley reaffirmed an “overweight” rating and issued a $305.00 price target on shares of Cloudflare in a report on Thursday, June 4th. The Goldman Sachs Group lowered Cloudflare from a “buy” rating to a “sell” rating in a report on Wednesday, April 15th. TD Cowen reaffirmed a “buy” rating on shares of Cloudflare in a report on Wednesday. Finally, Zacks Research raised Cloudflare from a “strong sell” rating to a “hold” rating in a report on Friday, March 13th. Twenty analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Cloudflare currently has a consensus rating of “Moderate Buy” and a consensus price target of $241.35.

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.