Pacific Wealth Strategies Group Inc. Invests $215,000 in Cloudflare, Inc.

Pacific Wealth Strategies Group Inc. has made a new investment in Cloudflare, Inc. (NYSE:NET) during the fourth quarter, as revealed in their latest 13F filing with the Securities and Exchange Commission. The company acquired 2,000 shares of Cloudflare's stock, which is valued at approximately $215,000.

Other Hedge Fund Activities

Several other hedge funds have also adjusted their positions in Cloudflare in recent months. For instance, WIM Investment Management Ltd initiated a new position during the third quarter worth $25,588,000. International Assets Investment Management LLC also acquired a new stake valued at around $147,160,000. Notably, Parnassus Investments LLC significantly boosted its stake by an impressive 1,851.9% during the same period, now owning 138,410 shares valued at $11,196,000 after adding 131,319 shares.

Geode Capital Management LLC increased its holdings by 2.6% during the third quarter as well, owning 4,834,558 shares worth $390,130,000 after an additional purchase of 121,810 shares. Lastly, Generate Investment Management Ltd purchased a new stake in Cloudflare during the fourth quarter, valued at approximately $12,946,000. Currently, institutional investors and hedge funds own 82.68% of the stock.

Insider Share Transactions

In related news, insider transactions have occurred at Cloudflare. CFO Thomas J. Seifert sold 15,000 shares of the company on February 3rd at an average price of $136.63, amounting to a total of $2,049,450. Following this sale, he directly owns 252,869 shares valued at about $34,549,491. This transaction showed a 5.60% reduction in his stock ownership. Another insider, Douglas James Kramer, sold 2,481 shares on the same day, receiving $326,648.46, which represents a 1.39% decrease in his ownership.

In total, insiders have sold 633,738 shares of the company for a total value of $69,632,506 over the past ninety days, and they own 12.83% of the company’s stock.

Performance of Cloudflare Stock

As of Friday, Cloudflare's stock opened at $166.88. The company displays a current ratio and quick ratio of 3.37, alongside a debt-to-equity ratio of 1.32. Over the past year, the stock has fluctuated with a low of $66.24 and a high of $171.38, with its fifty-day moving average standing at $118.89 and the two-hundred day moving average at $96.85.

Cloudflare recently disclosed its quarterly earnings results on February 6th, reporting an EPS of ($0.03) for the quarter, falling short of the expected $0.18 by a gap of ($0.21). The company recorded a negative net margin of 4.72% and a negative return on equity of 5.52%. Analysts project that Cloudflare will post -0.04 EPS for the current fiscal year.

Analyst Recommendations

Various financial analysts have presented their insights on Cloudflare's stock. JMP Securities increased their price target from $135.00 to $180.00, rating the stock as a “market outperform.” Similarly, Goldman Sachs raised their price target from $140.00 to $183.00, assigning a “buy” rating. Citigroup upgraded the stock from a “neutral” rating to a “buy” and lifted its price objective from $95.00 to $145.00. Robert W. Baird maintained a “neutral” rating while increasing their price target to $140.00, up from $125.00.

Three analysts have given Cloudflare a sell rating, while twelve have recommended a hold, and another twelve have rated it as a buy. Data from MarketBeat reflects an average rating of “Hold” with a price target average of $128.48.

About Cloudflare, Inc.

Cloudflare, Inc. is a cloud service provider offering a wide array of services globally. Their services encompass integrated cloud-based security solutions for various platforms, including public and private clouds, on-premise setups, and software-as-a-service applications. Additionally, they provide website and application security products such as web application firewalls, bot management tools, DDoS protection, API gateways, SSL/TLS encryption, and rate limiting services.

Investment, Cloudflare, HedgeFunds