Nordea Investment Management AB, a leading investment management firm, has made a notable reduction in its stake in Cloudflare, Inc. (NYSE:NET) during the second quarter of this fiscal year, as reported in its recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm’s position in Cloudflare saw a decrease of 13.4%, equivalent to the sale of 6,123 shares. At the end of this period, Nordea Investment Management AB held 39,589 shares of Cloudflare’s stock, valued at approximately $2,610,000.
The decision made by Nordea Investment Management AB to reduce its position in Cloudflare appears to have strategic implications regarding the future direction and performance of the company. This action demonstrates their cautious approach towards managing their holdings and suggests a thorough assessment of market conditions surrounding Cloudflare.
Cloudflare is an internet security and networking company listed on the New York Stock Exchange under ticker symbol NET. In its most recent earnings report released on August 3rd, the company showed earnings per share (EPS) of ($0.12). This figure fell short of analysts’ consensus estimates by ($0.03), signaling a slight disappointment among investors.
During this quarter, Cloudflare generated revenue totaling $308.49 million. Although slightly higher than analysts’ expectations of $305.63 million, it is important to note that the company’s net margin remained negative at 19.61%. Furthermore, it reported a negative return on equity figure of 21.42%, indicating potential challenges within their operations.
Considering these financial results and the decision by Nordea Investment Management AB to reduce its holdings in Cloudflare notably, market experts predict that the company will post an EPS of -0.34 for this fiscal year.
It is essential for investors and industry enthusiasts to closely monitor developments surrounding Cloudflare as it navigates through potential hurdles presented within the highly competitive domain of internet security and networking. By staying informed about relevant financial updates, investors can make well-informed decisions regarding their investment strategies.
In conclusion, the reduction in position by Nordea Investment Management AB in Cloudflare signifies a strategic move by one of the key players in the investment management industry. Cloudflare’s recent earnings report revealed mixed results with EPS falling short of estimates and negative net margin and return on equity figures. The company’s future performance remains uncertain as it continues to face challenges within its operating environment. Therefore, stakeholders should closely follow the company’s progress to evaluate its ability to address these obstacles effectively.
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Cloudflare Sees Activity from Various Investors: Highlights, Financials, and Analyst Ratings
Cloudflare, Inc., a leading web performance and security company, has seen recent activity from various investors. TFC Financial Management Inc. and Sunbelt Securities Inc. both acquired new positions in the company during the first quarter, valued at approximately $29,000 each. First Horizon Advisors Inc. increased its position in Cloudflare by 45.4% during the fourth quarter and now owns 682 shares of the company’s stock valued at $31,000 after buying an additional 213 shares in the last quarter.
Belpointe Asset Management LLC also acquired a new stake in Cloudflare during the fourth quarter, valuing it at around $31,000. Furthermore, Providence Capital Advisors LLC significantly increased its position in the first quarter by 6,065.0%, now owning 2,466 shares valued at $40,000 after purchasing an additional 2,426 shares.
It is important to note that 73.14% of Cloudflare’s stock is owned by institutional investors and hedge funds.
On September 24th, shares of Cloudflare opened at $57.77. The stock’s fifty-day moving average price is $64.17 with a two-hundred day moving average price of $61.30. Cloudflare currently has a market capitalization of $19.31 billion and a beta of 0.94.
Over the past year, Cloudflare’s stock fluctuated between its fifty-two week low of $37.37 and its fifty-two week high of $76.07.
Taking into account financials ratios, Cloudflare has a PE ratio of -86.22 and a debt-to-equity ratio of 2:00.
In related news on July 3rd, CFO Thomas J.Seifert sold 15,000 shares at an average price of $65.60 for a total transaction value of nearly one million dollars ($984K). Following this transaction, Seifert now holds 263,209 shares of Cloudflare’s stock valued at approximately $17,266,510.40.
Moreover, CEO Matthew Prince sold 52,384 shares of the firm’s stock on July 5th at an average price of $64.75, totaling a value of $3,391,864.00. Currently, Prince directly owns 10,716 shares in the company.
Notably, insiders have sold 672,906 shares of Cloudflare’s stock in the last quarter with an estimated value of $42,882,630. Subsequently, corporate insiders currently own 14.80% of the company’s outstanding stock.
Various analysts have recently evaluated Cloudflare’s performance and future prospects. KeyCorp raised their price objective from $61.00 to $80.00 on July 18th while Morgan Stanley reaffirmed an “equal weight” rating with a target price of $43.00 on August 7th.
The Goldman Sachs Group increased their price objective for Cloudflare from $38.00 to $43.00 and labeled it as a “sell” rating on August 4th in their research report.
Citigroup also raised their price objective for Cloudflare from $48.00 to $65.00 and provided a “neutral” rating on August 29th.
Finally, Needham & Company LLC gave Cloudflare a target price increase from $75.00 to $85.00 and classified it as a “buy” rating in their research note on August 4th.
In conclusion, according to Bloomberg.com data and various analyst reports, Cloudflare has been assigned a consensus rating of “Hold”. The average target price for the company is estimated to be around $63.92 per share based on these reports.
