Parnassus Investments LLC Decreases Position in Cloudflare, Inc. $NET

Parnassus Investments LLC lessened its holdings in shares of Cloudflare, Inc. (NYSE:NET) by 2.0% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 126,935 shares of the company’s stock after selling 2,634 shares during the period. Parnassus Investments LLC’s holdings in Cloudflare were worth $25,025,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the business. Empowered Funds LLC boosted its stake in Cloudflare by 34.2% in the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock worth $750,000 after purchasing an additional 1,696 shares in the last quarter. Sivia Capital Partners LLC acquired a new stake in Cloudflare in the 2nd quarter worth approximately $424,000. Cerity Partners LLC boosted its stake in Cloudflare by 30.1% in the 2nd quarter. Cerity Partners LLC now owns 27,531 shares of the company’s stock worth $5,391,000 after purchasing an additional 6,363 shares in the last quarter. Sei Investments Co. boosted its stake in Cloudflare by 40.1% in the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company’s stock worth $64,432,000 after purchasing an additional 94,112 shares in the last quarter. Finally, The Manufacturers Life Insurance Company boosted its stake in Cloudflare by 14.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company’s stock worth $3,224,000 after purchasing an additional 2,093 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Insider Activity

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

Cloudflare Price Performance

Shares of NET opened at $227.60 on Friday. The business’s 50-day moving average is $215.66 and its two-hundred day moving average is $201.49. The company has a market capitalization of $80.45 billion, a P/E ratio of -910.40 and a beta of 1.70. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $276.82.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $620.83 million. During the same period last year, the firm earned $0.16 EPS. The firm’s revenue for the quarter was up 33.5% compared to the same quarter last year. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Analyst Ratings Changes

NET has been the topic of several research reports. Royal Bank Of Canada upped their target price on Cloudflare from $240.00 to $260.00 and gave the company an “outperform” rating in a research report on Wednesday. The Goldman Sachs Group downgraded Cloudflare from a “buy” rating to a “sell” rating in a research report on Wednesday, April 15th. Citigroup initiated coverage on Cloudflare in a research report on Wednesday, April 15th. They issued a “buy” rating on the stock. Susquehanna upped their target price on Cloudflare from $190.00 to $200.00 and gave the company a “neutral” rating in a research report on Monday, May 11th. Finally, BTIG Research increased their price target on Cloudflare from $243.00 to $269.00 and gave the stock a “buy” rating in a research report on Wednesday. Twenty investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $241.35.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Truist raised its price target on Cloudflare to $250 from $225 and reiterated a buy rating, signaling confidence in the company’s outlook.
• Positive Sentiment: Royal Bank of Canada increased its target to $260 from $240 and kept an outperform rating, citing expected execution on Cloudflare’s long-term profitability goals.
• Positive Sentiment: BTIG boosted its target to $269 from $243 and maintained a buy rating, while Needham lifted its target to $280 from $250, also with a buy rating, adding to the bullish analyst momentum.
• Positive Sentiment: Barclays kept a buy rating on Cloudflare, and Morgan Stanley also sharply raised its price target, suggesting broader analyst optimism after the latest company updates.
• Positive Sentiment: Investors are reacting to Cloudflare’s investor day, where management emphasized an AI-first operating model, agentic AI opportunities, and a path to stronger profitability, which has helped lift sentiment around the stock.
• Neutral Sentiment: Cloudflare also announced a restructuring plan that includes roughly 1,100 job cuts and a proposal for a new Class C share structure; these moves could support efficiency, but they introduce execution and governance questions.
• Negative Sentiment: Not all broker commentary was positive, as one new sell recommendation appeared in the latest flow of research notes, showing some skepticism remains about the valuation and near-term upside.

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.