Baillie Gifford & Co. Sells 3,676,391 Shares of Cloudflare, Inc. $NET

Baillie Gifford & Co. cut its stake in shares of Cloudflare, Inc. (NYSE:NET) by 14.4% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 21,848,740 shares of the company’s stock after selling 3,676,391 shares during the period. Cloudflare comprises approximately 3.5% of Baillie Gifford & Co.’s investment portfolio, making the stock its 8th biggest position. Baillie Gifford & Co. owned approximately 6.27% of Cloudflare worth $4,688,521,000 as of its most recent filing with the SEC.

A number of other large investors also recently modified their holdings of the company. Norges Bank acquired a new position in Cloudflare in the 2nd quarter worth about $541,462,000. Groupama Asset Managment acquired a new stake in shares of Cloudflare during the second quarter valued at about $225,204,000. KBC Group NV grew its holdings in shares of Cloudflare by 1,388.7% during the second quarter. KBC Group NV now owns 736,153 shares of the company’s stock worth $144,161,000 after purchasing an additional 686,702 shares during the last quarter. Vanguard Group Inc. increased its stake in shares of Cloudflare by 2.1% in the second quarter. Vanguard Group Inc. now owns 31,495,565 shares of the company’s stock valued at $6,167,776,000 after buying an additional 658,656 shares during the period. Finally, Rakuten Investment Management Inc. bought a new position in Cloudflare in the 3rd quarter valued at approximately $138,660,000. 82.68% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts have weighed in on NET shares. Royal Bank Of Canada boosted their target price on shares of Cloudflare from $250.00 to $265.00 and gave the stock an “outperform” rating in a report on Friday, October 31st. Scotiabank increased their price objective on Cloudflare from $200.00 to $225.00 and gave the company a “sector perform” rating in a report on Friday, October 31st. UBS Group cut their target price on Cloudflare from $245.00 to $210.00 and set a “neutral” rating on the stock in a report on Tuesday, January 13th. Argus upped their price target on Cloudflare from $238.00 to $265.00 and gave the company a “buy” rating in a research report on Monday, November 10th. Finally, Needham & Company LLC raised their price objective on Cloudflare from $240.00 to $285.00 and gave the stock a “buy” rating in a research report on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $232.48.

Cloudflare Stock Performance

NET stock opened at $173.45 on Friday. The firm has a market cap of $60.76 billion, a PE ratio of -578.17, a price-to-earnings-growth ratio of 113.99 and a beta of 1.96. The company has a current ratio of 2.04, a quick ratio of 2.04 and a debt-to-equity ratio of 1.46. The stock has a 50-day moving average price of $195.24 and a 200-day moving average price of $205.77. Cloudflare, Inc. has a 1-year low of $89.42 and a 1-year high of $260.00.

Cloudflare (NYSE:NET) last announced its earnings results on Thursday, October 30th. The company reported $0.27 EPS for the quarter, beating the consensus estimate of $0.23 by $0.04. The company had revenue of $562.03 million for the quarter, compared to analyst estimates of $544.65 million. Cloudflare had a negative return on equity of 6.54% and a negative net margin of 5.12%.The firm’s revenue for the quarter was up 30.7% compared to the same quarter last year. During the same quarter in the prior year, the company 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. As a group, equities research analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Matthew Prince sold 52,384 shares of the business’s stock in a transaction on Thursday, January 8th. The shares were sold at an average price of $189.47, for a total transaction of $9,925,196.48. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Michelle Zatlyn sold 25,641 shares of the stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $190.05, for a total transaction of $4,873,072.05. Following the transaction, the insider directly owned 24,555 shares in the company, valued at approximately $4,666,677.75. This represents a 51.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 619,213 shares of company stock worth $122,370,244 over the last ninety days. 10.89% of the stock is owned by company insiders.

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.