Rakuten Investment Management Inc. Purchases New Position in Cloudflare, Inc. $NET

Rakuten Investment Management Inc. purchased a new stake in shares of Cloudflare, Inc. (NYSE:NET) in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor purchased 646,163 shares of the company’s stock, valued at approximately $138,660,000. Cloudflare comprises approximately 0.4% of Rakuten Investment Management Inc.’s investment portfolio, making the stock its 18th largest holding. Rakuten Investment Management Inc. owned 0.19% of Cloudflare at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Cloudflare by 2.1% in the second quarter. Vanguard Group Inc. now owns 31,495,565 shares of the company’s stock worth $6,167,776,000 after acquiring an additional 658,656 shares during the period. Geode Capital Management LLC raised its holdings in Cloudflare by 5.1% in the 2nd quarter. Geode Capital Management LLC now owns 5,536,679 shares of the company’s stock worth $1,081,533,000 after purchasing an additional 270,227 shares in the last quarter. Norges Bank purchased a new stake in shares of Cloudflare in the 2nd quarter worth about $541,462,000. Charles Schwab Investment Management Inc. boosted its stake in shares of Cloudflare by 3.6% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 1,368,906 shares of the company’s stock valued at $268,073,000 after purchasing an additional 47,698 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA increased its position in shares of Cloudflare by 96.3% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,302,893 shares of the company’s stock valued at $279,588,000 after buying an additional 639,245 shares during the period. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Price Performance

NET opened at $177.26 on Wednesday. The firm has a market cap of $62.09 billion, a PE ratio of -590.86, a P/E/G ratio of 121.14 and a beta of 1.96. The stock has a 50-day moving average price of $197.91 and a 200-day moving average price of $206.40. Cloudflare, Inc. has a 1 year low of $89.42 and a 1 year high of $260.00. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.04 and a quick ratio of 2.04.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, October 30th. The company reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.23 by $0.04. The business had revenue of $562.03 million during the quarter, compared to analyst estimates of $544.65 million. Cloudflare had a negative net margin of 5.12% and a negative return on equity of 6.54%. Cloudflare’s revenue was up 30.7% compared to the same quarter last year. During the same period last year, the business earned $0.20 EPS. Cloudflare has set its Q4 2025 guidance at 0.270-0.270 EPS and its FY 2025 guidance at 0.910-0.910 EPS. Sell-side analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have commented on NET shares. Truist Financial set a $225.00 price objective on shares of Cloudflare in a report on Tuesday. Guggenheim restated a “sell” rating on shares of Cloudflare in a research note on Tuesday, October 21st. Wall Street Zen raised Cloudflare from a “hold” rating to a “buy” rating in a research note on Saturday, November 8th. Susquehanna raised their price objective on Cloudflare from $205.00 to $260.00 and gave the company a “neutral” rating in a research report on Monday, November 3rd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Cloudflare in a research report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $232.48.

Insider Activity at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,384 shares of the stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $195.32, for a total transaction of $10,231,642.88. Following the sale, the chief executive officer directly owned 22,175 shares in the company, valued at approximately $4,331,221. This trade represents a 70.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Thomas J. Seifert sold 41,555 shares of Cloudflare stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $194.18, for a total value of $8,069,149.90. Following the completion of the sale, the chief financial officer directly owned 137,486 shares of the company’s stock, valued at approximately $26,697,031.48. The trade was a 23.21% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 609,213 shares of company stock valued at $120,586,544. 10.89% of the stock is owned by corporate insiders.

About Cloudflare

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.