Covenant Asset Management LLC Makes New Investment in Cloudflare, Inc. $NET

Covenant Asset Management LLC bought a new position in shares of Cloudflare, Inc. (NYSE:NET) during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 16,438 shares of the company’s stock, valued at approximately $5,709,000.

Several other institutional investors also recently bought and sold shares of NET. GK Wealth Management LLC acquired a new stake in shares of Cloudflare in the third quarter worth about $25,000. Toth Financial Advisory Corp acquired a new position in shares of Cloudflare during the 3rd quarter valued at about $36,000. Cornerstone Financial Management LLC increased its holdings in shares of Cloudflare by 65.3% during the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after acquiring an additional 47 shares during the last quarter. C M Bidwell & Associates Ltd. acquired a new position in shares of Cloudflare during the 2nd quarter valued at about $30,000. Finally, CX Institutional raised its stake in shares of Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock valued at $33,000 after acquiring an additional 44 shares in the last quarter. 82.68% of the stock is currently owned by institutional investors.

Insider Activity at Cloudflare

In related news, Director Carl Ledbetter sold 5,000 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $353.15, for a total transaction of $1,765,750.00. Following the transaction, the director directly owned 873,073 shares in the company, valued at $308,325,729.95. The trade was a 0.57% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Alissa Michelle Starzak sold 2,538 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $304.68, for a total value of $773,277.84. Following the transaction, the insider owned 112,082 shares in the company, valued at $34,149,143.76. This represents a 2.21% 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. Insiders have sold a total of 458,839 shares of company stock worth $138,172,392 in the last three months. Corporate insiders own 10.66% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Truist Financial increased their price target on Cloudflare from $300.00 to $350.00 and gave the company a “buy” rating in a report on Friday, August 7th. Scotiabank lifted their target price on shares of Cloudflare from $300.00 to $390.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Morgan Stanley reiterated an “overweight” rating and issued a $370.00 price objective on shares of Cloudflare in a research note on Friday, August 7th. Citizens Jmp reissued a “market outperform” rating and set a $394.00 price objective on shares of Cloudflare in a research report on Monday, August 31st. Finally, Mizuho increased their target price on Cloudflare from $260.00 to $310.00 and gave the company an “outperform” rating in a research note on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have given a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $330.59.

Cloudflare Trading Down 6.8%

Shares of NET stock opened at $324.16 on Thursday. The firm has a market capitalization of $114.58 billion, a P/E ratio of -558.90, a price-to-earnings-growth ratio of 276.54 and a beta of 1.65. Cloudflare, Inc. has a 1 year low of $158.83 and a 1 year high of $370.35. The firm’s fifty day simple moving average is $318.98 and its 200 day simple moving average is $262.99. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22.

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

Cloudflare Profile

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.