Sumitomo Mitsui Trust Group Inc. Sells 51,205 Shares of Cloudflare, Inc. $NET

Sumitomo Mitsui Trust Group Inc. cut its stake in Cloudflare, Inc. (NYSE:NET) by 4.5% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,074,397 shares of the company’s stock after selling 51,205 shares during the period. Sumitomo Mitsui Trust Group Inc.’s holdings in Cloudflare were worth $221,691,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of the company. Vanguard Group Inc. grew its holdings in shares of Cloudflare by 0.3% during the 4th 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 lifted its stake in shares of Cloudflare by 4.2% in the 4th quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock valued at $1,184,044,000 after purchasing an additional 241,981 shares during the period. First Trust Advisors LP boosted its position in shares of Cloudflare by 1.6% during the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock valued at $792,377,000 after purchasing an additional 63,198 shares in the last quarter. Invesco Ltd. boosted its position in shares of Cloudflare by 1.3% during the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after purchasing an additional 49,485 shares in the last quarter. Finally, Norges Bank purchased a new stake in Cloudflare in the fourth quarter worth $718,316,000. 82.68% of the stock is owned by institutional investors.

Insider Activity at Cloudflare

In other news, CEO Matthew Prince sold 52,422 shares of the stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $249.09, for a total transaction of $13,057,795.98. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michelle Zatlyn sold 35,080 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the sale, the insider directly owned 47,425 shares of the company’s stock, valued at $10,148,001.50. This trade represents a 42.52% decrease in their position. 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. In the last quarter, insiders sold 626,185 shares of company stock worth $139,810,855. Insiders own 10.66% of the company’s stock.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Scotiabank upgraded Cloudflare (NYSE:NET) to Sector Outperform and lifted its target to $300, citing stronger growth prospects from AI, edge computing, and zero-trust security. Scotiabank Sees a New Growth Story for Cloudflare
• Positive Sentiment: Cloudflare’s partnership with OpenAI on a research pilot for AI search indexing reinforces the company’s AI infrastructure narrative and could support future demand. Cloudflare, OpenAI team up to launch research pilot for AI search indexing
• Positive Sentiment: Recent coverage highlighted Cloudflare’s rally as investors increasingly view it as an AI infrastructure beneficiary, which may be helping sentiment and momentum in the shares. Cloudflare (NYSE:NET) Rally Sparks AI Infrastructure Buzz
• Neutral Sentiment: Director Carl Ledbetter sold 5,000 shares under a pre-arranged Rule 10b5-1 plan. The sale is notable, but it does not necessarily signal a change in the company’s outlook. Cloudflare Director Carl Ledbetter Sells 5,000 Shares
• Neutral Sentiment: Cloudflare’s AI crawl/referral data drew attention in a Business Insider piece, but the article is more about industry behavior than a direct fundamental change for NET. Cloudflare’s latest AI rankings expose the web’s biggest free rider

Cloudflare Price Performance

Shares of NYSE:NET opened at $276.04 on Friday. Cloudflare, Inc. has a 1-year low of $158.83 and a 1-year high of $278.88. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The business has a fifty day moving average price of $230.76 and a 200-day moving average price of $206.97. The company has a market capitalization of $97.57 billion, a PE ratio of -1,104.16, a PEG ratio of 275.35 and a beta of 1.67.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. The firm had revenue of $639.75 million during the quarter, compared to analyst estimates of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.Cloudflare’s quarterly revenue was up 33.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, equities analysts expect that Cloudflare, Inc. will post 0.02 EPS for the current fiscal year.

Analyst Ratings Changes

NET has been the subject of a number of research reports. Guggenheim reiterated a “sell” rating and issued a $140.00 price objective on shares of Cloudflare in a report on Wednesday, June 10th. Needham & Company LLC boosted their target price on shares of Cloudflare from $250.00 to $280.00 and gave the company a “buy” rating in a report on Wednesday, June 10th. Cantor Fitzgerald reaffirmed a “neutral” rating and issued a $230.00 target price (up from $224.00) on shares of Cloudflare in a research report on Wednesday, June 10th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $136.00 price target on shares of Cloudflare in a research note on Wednesday, June 10th. Finally, Barclays reissued an “overweight” rating and set a $250.00 price target on shares of Cloudflare in a research report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $244.23.

Cloudflare Company 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.