Cloudflare, Inc.

New York Stock Exchange
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Bullish +65

Cloudflare, Inc. $NET Holdings Lessened by Capelight Capital Asset ...

📉 Capelight Capital Asset Management LP reduced its Cloudflare position by 11.1% in Q1, holding 40,000 shares valued at $8.25 million.

📈 Norges Bank initiated a new position worth $718.3 million, while Jennison Associates LLC increased its stake by 802.6% to own 1.86 million shares.

💰 CEO Matthew Prince sold 52,384 shares for $11.75 million on June 24th under a pre-arranged Rule 10b5-1 trading plan.

📊 Cloudflare reported Q1 revenue of $639.75 million, representing a 33.5% year-over-year increase compared to the prior period.

💹 The company beat earnings estimates with $0.25 EPS versus the consensus of $0.23 for the quarter ended May 7th.

🔮 Cloudflare provided FY 2026 guidance ranging from $1.19 to $1.20 in earnings per share.

📉 Insiders sold a total of 566,245 shares worth approximately $121.3 million over the last 90 days.

🏆 BTIG Research raised its price objective to $269 and reaffirmed a 'Buy' rating on June 10th.

📉 Guggenheim maintains a 'Sell' rating with a price target of $140, contrasting with other bullish analysts.

🌐 Institutional ownership stands at approximately 82.68% of the outstanding shares as of the latest filings.

Bullish Signals
  • Cloudflare reported revenue of $639.75 million for the quarter, which represents a significant 33.5% increase compared to the same quarter last year.
  • The company beat analyst consensus estimates with earnings per share of $0.25 against an expected $0.23.
  • Major institutional investors like Norges Bank and Jennison Associates LLC significantly increased their holdings, indicating strong confidence in the stock's long-term prospects.
  • Analysts from BTIG, Truist Financial, and Needham & Company have raised price targets to between $269 and $280 while maintaining 'Buy' ratings.
  • The company has set a forward-looking FY 2026 EPS guidance range of $1.19 to $1.20, suggesting continued growth expectations.
Risk Factors
  • CEO Matthew Prince sold 52,384 shares worth approximately $11.75 million in a single transaction on June 24th.
  • Corporate insiders have collectively sold 566,245 shares worth roughly $121.3 million over the last 90 days.
  • Guggenheim Research maintains a 'Sell' rating with a price target of $140, which is significantly lower than other analyst targets.
Full Analysis
Institutional ownership of Cloudflare, Inc. (NYSE:NET) saw mixed activity in the first quarter, with Capelight Capital Asset Management LP reducing its stake by 11.1% to 40,000 shares worth $8.25 million. Conversely, several major investors significantly increased their positions, including Norges Bank which established a new position valued at $718.3 million, and Jennison Associates LLC which grew its stake by over 800% to own 1.86 million shares. Recent insider trading activity shows CEO Matthew Prince sold 52,384 shares for approximately $11.75 million on June 24th under a pre-arranged Rule 10b5-1 plan, while Director John Graham-Cumming sold 2,520 shares on June 15th. Over the last 90 days, insiders have collectively sold 566,245 shares worth roughly $121.3 million, representing a 10.66% ownership stake held by corporate insiders. Cloudflare reported strong financial results for the quarter ended May 7th, beating consensus estimates with revenue of $639.75 million (up 33.5% year-over-year) and EPS of $0.25 versus an expected $0.23. The company provided guidance for FY 2026 EPS between $1.19 and $1.20, while analysts maintain a 'Moderate Buy' rating with an average price target of $241.35. Analyst sentiment remains bullish despite mixed institutional flows, with BTIG, Truist Financial, and Needham & Company raising price targets to between $269 and $280 and reaffirming 'Buy' ratings. Guggenheim maintains a 'Sell' rating with a $140 target. The company continues to expand its edge computing and developer platform offerings alongside its core security services.