Cloudflare, Inc.

New York Stock Exchange
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Somewhat Bullish +45

Atika Capital Management LLC Buys 10,100 Shares of Cloudflare, Inc ...

📈 Atika Capital Management LLC increased its stake in Cloudflare by 18.4% to own 65,000 shares valued at $13.4 million.

📊 Brown Brothers Harriman & Co. grew its position by 55.4%, while HM Payson & Co. and Wiser Advisor Group initiated new stakes.

📉 CEO Matthew Prince sold 52,422 shares worth $13 million under a pre-arranged Rule 10b5-1 trading plan.

💰 Founder Michelle Zatlyn sold 35,080 shares worth $7.5 million, reducing her stake by 42.52%.

📈 Oppenheimer raised its price target to $330 with an 'outperform' rating on Cloudflare stock.

🔍 BTIG Research lifted its target price to $314 and maintained a 'buy' rating for the company.

⚠️ Weiss Ratings restated a 'sell (d-)' rating, while Sanford C. Bernstein issued a 'market perform' rating with a $136 target.

💵 Cloudflare reported Q2 revenue of $639.75 million, representing a 33.5% year-over-year increase.

🎯 The company beat EPS estimates with $0.25 earnings per share compared to the consensus of $0.23.

📅 Cloudflare set FY 2026 guidance for EPS between $1.19 and $1.20, signaling a return to profitability.

🏦 The company maintains a current ratio of 1.96 and a debt-to-equity ratio of 1.29.

📉 Cloudflare trades at a negative P/E ratio of -1,050.12 due to recent operating losses.

Bullish Signals
  • Atika Capital Management LLC increased its stake by 18.4% in the first quarter, adding 10,100 shares to its portfolio.
  • Brown Brothers Harriman & Co. significantly grew its position by 55.4% during the third quarter.
  • Oppenheimer raised its price objective from $300 to $330 and upgraded the rating to 'outperform'.
  • BTIG Research lifted its target price from $269 to $314 and reaffirmed a 'buy' rating.
  • Cloudflare reported revenue of $639.75 million, which exceeded analyst estimates of $620.83 million.
  • The company beat earnings per share expectations with $0.25 actual versus $0.23 consensus.
  • Revenue grew by 33.5% year-over-year, demonstrating strong top-line growth momentum.
  • Cloudflare has set FY 2026 guidance for EPS between $1.19 and $1.20, indicating a clear path to profitability.
Risk Factors
  • CEO Matthew Prince sold 52,422 shares worth approximately $13 million in a recent transaction.
  • Founder Michelle Zatlyn sold 35,080 shares worth about $7.5 million, reducing her stake by over 42%.
  • Insiders have collectively sold 564,903 shares worth $127.4 million in the last quarter.
  • Weiss Ratings restated a 'sell (d-)' rating on Cloudflare stock.
  • Sanford C. Bernstein issued a 'market perform' rating with a low price target of $136.
  • The company reported a negative net margin of 3.72% and a negative return on equity of 5.65%.
  • Cloudflare trades at a significantly negative P/E ratio of -1,050.12 due to recent losses.
Full Analysis
Atika Capital Management LLC increased its stake in Cloudflare, Inc. (NYSE:NET) by 18.4% in the first quarter, adding 10,100 shares to reach a total holding of 65,000 shares valued at $13.4 million. This position represents 1.7% of Atika's portfolio and ranks as its 13th largest holding. Several other institutional investors, including Brown Brothers Harriman & Co., also increased their stakes during the quarter, while others like HM Payson & Co. initiated new positions. Analyst sentiment remains mixed but generally positive regarding Cloudflare's growth trajectory. Oppenheimer raised its price target to $330 with an 'outperform' rating, and BTIG Research lifted its target to $314 with a 'buy' rating. However, Weiss Ratings restated a 'sell (d-)' rating, and Sanford C. Bernstein maintains a 'market perform' rating with a lower target of $136. The consensus average price target stands at $261.19 based on data from MarketBeat.com. Insider activity shows significant selling pressure as CEO Matthew Prince sold 52,422 shares worth approximately $13 million and founder Michelle Zatlyn sold 35,080 shares worth about $7.5 million in the last quarter. Despite these sales, which were executed under pre-arranged Rule 10b5-1 trading plans, Cloudflare reported strong financial results with revenue of $639.75 million, a 33.5% year-over-year increase, and EPS of $0.25, beating analyst estimates. Cloudflare continues to expand its web infrastructure and security services, including edge computing and developer platforms. The company maintains a market cap of $92.80 billion with a current ratio of 1.96. While the stock trades at a negative P/E ratio of -1,050.12 due to recent losses, it has set FY 2026 guidance for EPS between $1.19 and $1.20, indicating a path toward profitability.