Key Points
- CFO Thomas Seifert sold 41,557 shares on Feb. 20 at an average price of $185.04 for a $7.69M transaction, cutting his stake by 32.72% to 85,452 shares (disclosed in an SEC Form 4).
- Quarterly results showed revenue strength but continued unprofitability: Cloudflare beat EPS by $0.01 and reported $614.51M in revenue (up 33.6% YoY), while still posting a negative net margin (-4.72%) and negative return on equity (-7.4%).
- Mixed market backdrop and analyst view: the stock trades well below its 12‑month high but above its low, the consensus rating is "Moderate Buy" with a $230.70 target, yet recent insider selling and sector headwinds (AI vulnerability tools, tariff concerns) have weighed on sentiment despite product and partnership positives.
Cloudflare, Inc. (NYSE:NET - Get Free Report) CFO Thomas Seifert sold 41,557 shares of the firm's stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $185.04, for a total transaction of $7,689,707.28. Following the sale, the chief financial officer owned 85,452 shares of the company's stock, valued at approximately $15,812,038.08. This represents a 32.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link.
Cloudflare Stock Up 2.1%
Cloudflare stock opened at $163.63 on Wednesday. Cloudflare, Inc. has a twelve month low of $89.42 and a twelve month high of $260.00. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. The firm has a market cap of $57.32 billion, a PE ratio of -564.21 and a beta of 1.97. The firm's 50 day moving average price is $187.11 and its two-hundred day moving average price is $203.56.
Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.27 by $0.01. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.40%. The business had revenue of $614.51 million for the quarter, compared to analysts' expectations of $591.67 million. During the same period in the previous year, the company posted $0.19 EPS. Cloudflare's revenue was up 33.6% on a year-over-year basis. On average, research analysts predict that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.
Hedge Funds Weigh In On Cloudflare
Several large investors have recently made changes to their positions in the business. Empowered Funds LLC lifted its holdings in shares of Cloudflare by 34.2% during the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock worth $750,000 after buying an additional 1,696 shares during the last quarter. Sivia Capital Partners LLC bought a new position in Cloudflare during the second quarter worth $424,000. Mutual of America Capital Management LLC acquired a new position in Cloudflare during the 2nd quarter valued at $1,068,000. Cullen Frost Bankers Inc. bought a new stake in Cloudflare in the 2nd quarter valued at $45,000. Finally, Focus Partners Advisor Solutions LLC acquired a new stake in Cloudflare in the 2nd quarter worth $295,000. Institutional investors and hedge funds own 82.68% of the company's stock.
Key Headlines Impacting Cloudflare
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Product differentiation — Cloudflare says its Cloudflare One SASE platform is the first to support modern post‑quantum encryption, a security and compliance advantage that can help win enterprise deals and justify premium pricing. Read More.
- Positive Sentiment: Commercial partnership — Cloudflare announced a strategic partnership with Mastercard to build small‑business tools, which could accelerate SMB adoption and expand go‑to‑market reach. Read More.
- Positive Sentiment: Fundamentals — recent quarterly results showed a small EPS beat and ~34% revenue growth year‑over‑year, supporting growth expectations despite negative margins (investors see revenue momentum as a tailwind).
- Neutral Sentiment: Minor institutional buying — a modest 13F filing showed an increased position by an institutional investor, a limited vote of confidence but not large enough to change ownership dynamics materially. Read More.
- Negative Sentiment: AI disruption fears — Anthropic’s new tool that scans code for vulnerabilities spooked the cybersecurity sector, prompting broad selling in security and networking names (Cloudflare was caught up in the selloff). Read More.
- Negative Sentiment: Macro/tech risk — reports that the White House plans to raise global tariffs to 15% triggered risk‑off flows in growth tech, which hit Cloudflare as investors reduced exposure to higher‑beta names. Read More.
- Negative Sentiment: Insider selling — COO Michelle Zatlyn sold large blocks of shares across Feb. 19–23, substantially reducing her stake; heavy insider sales can increase perceived near‑term supply and weigh on sentiment. Read More.
- Negative Sentiment: Headline skepticism — opinion/analysis pieces question whether new LLMs (e.g., Claude) will commoditize parts of Cloudflare’s security stack, adding uncertainty about long‑term pricing power. Read More.
Wall Street Analyst Weigh In
Several brokerages recently commented on NET. Susquehanna set a $190.00 price target on Cloudflare in a research note on Thursday, February 12th. Wells Fargo & Company boosted their target price on shares of Cloudflare from $265.00 to $270.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. Mizuho dropped their price target on shares of Cloudflare from $280.00 to $255.00 and set an "outperform" rating on the stock in a research note on Wednesday, January 21st. TD Cowen reaffirmed a "buy" rating on shares of Cloudflare in a research note on Tuesday, January 27th. Finally, BTIG Research upped their price objective on shares of Cloudflare from $199.00 to $243.00 and gave the stock a "buy" rating in a report on Wednesday, February 11th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $230.70.
Check Out Our Latest Stock Report on NET
About Cloudflare
(
Get Free Report)
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.
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