Hennion & Walsh Asset Management Inc. Reduces Holdings in Cloudflare, Inc. $NET

Hennion & Walsh Asset Management Inc. lowered its position in shares of Cloudflare, Inc. (NYSE:NET) by 58.3% during the second quarter, Holdings Channel reports. The firm owned 4,278 shares of the company’s stock after selling 5,976 shares during the quarter. Hennion & Walsh Asset Management Inc.’s holdings in Cloudflare were worth $1,049,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also made changes to their positions in NET. Vanguard Group Inc. boosted its position in shares of Cloudflare by 0.3% in the 4th quarter. Vanguard Group Inc. now owns 32,407,646 shares of the company’s stock valued at $6,389,167,000 after purchasing an additional 90,397 shares during the period. Geode Capital Management LLC increased its position in Cloudflare by 4.2% during the fourth quarter. Geode Capital Management LLC now owns 6,018,175 shares of the company’s stock worth $1,184,044,000 after buying an additional 241,981 shares during the period. Jennison Associates LLC lifted its stake in Cloudflare by 135.8% in the first quarter. Jennison Associates LLC now owns 4,394,484 shares of the company’s stock valued at $906,758,000 after buying an additional 2,530,872 shares during the last quarter. First Trust Advisors LP lifted its stake in Cloudflare by 1.6% in the fourth quarter. First Trust Advisors LP now owns 4,019,157 shares of the company’s stock valued at $792,377,000 after buying an additional 63,198 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Cloudflare by 1.3% in the third quarter. Invesco Ltd. now owns 3,964,733 shares of the company’s stock valued at $850,792,000 after acquiring an additional 49,485 shares during the period. 82.68% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

NET has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a “buy” rating in a research report on Tuesday, July 7th. Benchmark cut shares of Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. DZ Bank downgraded shares of Cloudflare from a “strong-buy” rating to a “strong sell” rating in a research report on Friday, August 7th. Raymond James Financial began coverage on shares of Cloudflare in a research note on Tuesday, July 7th. They issued a “strong-buy” rating on the stock. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $136.00 target price on shares of Cloudflare in a report on Wednesday, June 10th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $320.19.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Strong Q2 results and upbeat guidance support the rally. Cloudflare reported revenue of $696.1 million, up 35.9% year over year and above expectations, while non-GAAP EPS of $0.29 exceeded the $0.27 consensus. Next-quarter revenue guidance of approximately $736.5 million was also ahead of analyst estimates. NET Q2 Deep Dive
• Positive Sentiment: AI security and developer-platform demand are strengthening Cloudflare’s growth story. Coverage points to increasing demand for SASE, Zero Trust, agentic AI and developer tools, potentially helping Cloudflare win larger enterprise contracts and compete more directly with Palo Alto Networks and Zscaler. Cloudflare AI security strategy
• Positive Sentiment: Signal selected Cloudflare as an independent Key Transparency auditor. The partnership gives hundreds of millions of Signal users additional confidence in message privacy and showcases Cloudflare’s security and trust infrastructure. Signal partnership announcement
• Positive Sentiment: Analyst sentiment remains broadly favorable. Several firms raised price targets, and brokerages maintain a consensus “Moderate Buy” view. Technical coverage also describes strong momentum after the earnings beat. Cloudflare momentum setup
• Neutral Sentiment: Cloudflare raised $2.175 billion through zero-coupon convertible notes due in 2031. The deal adds financial flexibility without cash interest expense, but potential future share conversion could dilute existing shareholders. Cloudflare convertible note offering
• Negative Sentiment: x402 settlement volume has plunged 93% year to date. The decline suggests the late-2025 surge in AI-agent payments may have been driven primarily by testing rather than sustained demand, challenging near-term monetization expectations. x402 settlement volume report
• Negative Sentiment: Valuation and insider selling create downside risks. Cloudflare trades at a demanding valuation while remaining GAAP-unprofitable. Director John Graham-Cumming sold 2,520 shares under a pre-arranged Rule 10b5-1 plan, although he retained nearly 495,000 shares. Cloudflare director stock sale

Insider Buying and Selling at Cloudflare

In other Cloudflare news, CEO Matthew Prince sold 52,422 shares of the company’s stock in a transaction 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 on Friday, May 22nd. The stock was sold at an average price of $213.98, for a total transaction of $7,506,418.40. Following the completion of the sale, the insider 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. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 748,719 shares of company stock valued at $183,992,198. 10.66% of the stock is owned by company insiders.

Cloudflare Trading Up 6.4%

Shares of NET stock opened at $331.45 on Friday. The company has a market capitalization of $117.16 billion, a P/E ratio of -571.47, a price-to-earnings-growth ratio of 192.59 and a beta of 1.65. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. The business’s 50 day moving average is $260.67 and its two-hundred day moving average is $223.07. Cloudflare, Inc. has a twelve month low of $158.83 and a twelve month high of $332.22.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative return on equity of 3.88% and a negative net margin of 8.21%.The business had revenue of $696.06 million during the quarter, compared to analysts’ expectations of $664.66 million. During the same quarter in the prior year, the business earned $0.21 earnings per share. The company’s quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Equities analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current year.

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.