Baillie Gifford & Co. Cuts Stock Holdings in Cloudflare, Inc. $NET

Baillie Gifford & Co. decreased its stake in shares of Cloudflare, Inc. (NYSE:NET) by 23.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 16,823,947 shares of the company’s stock after selling 5,024,793 shares during the period. Cloudflare comprises about 2.8% of Baillie Gifford & Co.’s holdings, making the stock its 12th largest position. Baillie Gifford & Co. owned approximately 4.80% of Cloudflare worth $3,316,841,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently modified their holdings of NET. Physician Wealth Advisors Inc. grew its stake in Cloudflare by 693.3% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock valued at $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC purchased a new position in shares of Cloudflare during the 3rd quarter valued at $26,000. Westside Investment Management Inc. lifted its position in shares of Cloudflare by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock valued at $28,000 after buying an additional 65 shares during the last quarter. ORG Wealth Partners LLC raised its stake in shares of Cloudflare by 101.4% during the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock valued at $30,000 after purchasing an additional 70 shares during the period. Finally, Wexford Capital LP bought a new stake in shares of Cloudflare during the 3rd quarter valued at $30,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Wall Street Analysts Forecast Growth

NET has been the topic of a number of analyst reports. DZ Bank upgraded Cloudflare from a “hold” rating to a “buy” rating and set a $215.00 price objective on the stock in a research note on Friday, February 13th. Guggenheim increased their price objective on Cloudflare from $117.00 to $140.00 and gave the company a “sell” rating in a research report on Wednesday, February 11th. Robert W. Baird set a $260.00 price objective on Cloudflare and gave the company an “outperform” rating in a research report on Wednesday, February 11th. Truist Financial set a $225.00 price objective on Cloudflare in a research report on Tuesday, January 20th. Finally, Wells Fargo & Company boosted their price objective on Cloudflare from $265.00 to $270.00 and gave the company an “overweight” rating in a research report on Wednesday, February 11th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $233.38.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Product and partner momentum: Virtru launched object‑level data governance for Cloudflare R2, improving R2’s security/compliance pitch for AI workloads and strengthening Cloudflare’s developer/storage monetization pathway. Virtru Brings Object Level Governance To Cloudflare R2 For AI And Compliance
• Positive Sentiment: Durable fundamentals: recent quarterly results showed revenue growth (~34% y/y) and an EPS beat, and several analysts highlight Cloudflare’s edge + security positioning for AI inference at the edge — a longer‑term growth thesis for the stock. Are Cloudflare (NET)’s AI Security Prospects Brighter Than Investors Think?
• Neutral Sentiment: Wall Street stance is mixed‑positive: consensus remains around a “moderate buy” with varied price targets, so analyst coverage may temper panic selling but isn’t a fresh bullish catalyst right now. Cloudflare, Inc. (NYSE:NET) Receives Average Rating of “Moderate Buy” from Analysts
• Negative Sentiment: Sector contagion from AI “agent” news: reports that Anthropic launched managed agents triggered a broad sell‑off in AI/edge/security infrastructure names (Cloudflare included) as investors rapidly reprice how frontier AI advances could change competitive dynamics and margins. Fastly, along with Akamai and Cloudflare, tumbles after Anthropic launches managed agents
• Negative Sentiment: Insider selling amplified pressure: several recently disclosed, pre‑arranged CEO sales (Rule 10b5‑1) were sizable and have been highlighted in headlines; even planned sales can create short‑term selling pressure and raise investor nerves. Cloudflare (NET) Stock Plunges 8.6% Following CEO’s $33M Share Sale
• Negative Sentiment: Macro & geopolitical risk: a ceasefire breach in the Middle East briefly spiked market volatility today, contributing to risk‑off flows that hit high‑multiple software and AI infrastructure stocks. Why Cloudflare (NET) Shares Are Trading Lower Today

Insider Activity

In other Cloudflare news, insider Michelle Zatlyn sold 35,080 shares of Cloudflare stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $187.39, for a total transaction of $6,573,641.20. Following the completion of the transaction, the insider owned 34,514 shares in the company, valued at approximately $6,467,578.46. The trade was a 50.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Thomas J. Seifert sold 41,557 shares of Cloudflare stock in a transaction on Friday, February 20th. The shares were sold at an average price of $185.04, for a total value of $7,689,707.28. Following the transaction, the chief financial officer owned 85,452 shares of the company’s stock, valued at $15,812,038.08. The trade was a 32.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 624,247 shares of company stock worth $121,102,467 in the last quarter. 10.89% of the stock is owned by company insiders.

Cloudflare Trading Up 0.3%

NYSE NET opened at $167.41 on Monday. The stock has a market cap of $58.92 billion, a P/E ratio of -577.26 and a beta of 1.87. The company has a debt-to-equity ratio of 1.35, a quick ratio of 1.98 and a current ratio of 1.98. The stock has a 50 day simple moving average of $194.59 and a two-hundred day simple moving average of $201.74. Cloudflare, Inc. has a fifty-two week low of $100.25 and a fifty-two week high of $260.00.

Cloudflare (NYSE:NET) last released its earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.01. The company had revenue of $614.51 million during the quarter, compared to analysts’ expectations of $591.67 million. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The firm’s revenue for the quarter was up 33.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.19 EPS. On average, analysts forecast that Cloudflare, Inc. will post -0.11 earnings per share 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.