Capital World Investors Trims Cloudflare Stake to 7.9%

TL;DR

**Big investor Capital World Investors cut its Cloudflare stake to 7.9%.**

AI Summary

Capital World Investors, a major institutional investor, filed an amended SC 13G/A on February 9, 2024, disclosing their ownership in Cloudflare, Inc. as of December 29, 2023. They now beneficially own 27,791,766 shares of Cloudflare's Common Stock, representing 7.9% of the company, a slight decrease from their previous filing. This matters to investors because it shows a significant institutional holder has slightly reduced its stake, which could signal a shift in their outlook on Cloudflare's future performance.

Why It Matters

This filing indicates a prominent institutional investor has slightly reduced its position in Cloudflare, which could be interpreted as a minor loss of confidence or a portfolio rebalancing.

Risk Assessment

Risk Level: low — The change in ownership is minor and doesn't suggest a significant shift in the company's fundamentals or a major sell-off.

Analyst Insight

Investors should note the slight reduction in Capital World Investors' stake but consider it a minor portfolio adjustment rather than a strong bearish signal, and look for further institutional activity or company-specific news.

Key Numbers

• 27,791,766 — Shares Beneficially Owned (This is the total number of Cloudflare shares Capital World Investors holds.)
• 7.9% — Percentage of Class (This represents the portion of Cloudflare's common stock owned by Capital World Investors, indicating a significant but slightly reduced stake.)
• December 29, 2023 — Event Date (This is the snapshot date for the ownership information reported in the filing.)

Key Players & Entities

• Capital World Investors (company) — the reporting person and institutional investor
• Cloudflare, Inc. (company) — the subject company whose shares are being reported
• 27,791,766 (dollar_amount) — number of shares beneficially owned by Capital World Investors
• 7.9% (dollar_amount) — percentage of Cloudflare's common stock owned by Capital World Investors
• December 29, 2023 (date) — the date of the event requiring the filing

Forward-Looking Statements

• Cloudflare's stock price may experience minor downward pressure due to the slight reduction in institutional ownership. (Cloudflare, Inc.) — low confidence, target: Q1 2024

FAQ

From the Filing

0001422848-24-000226.txt : 20240209 0001422848-24-000226.hdr.sgml : 20240209 20240209181414 ACCESSION NUMBER: 0001422848-24-000226 CONFORMED SUBMISSION TYPE: SC 13G/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20240209 DATE AS OF CHANGE: 20240209 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Cloudflare, Inc. CENTRAL INDEX KEY: 0001477333 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] ORGANIZATION NAME: 06 Technology IRS NUMBER: 270805829 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-91163 FILM NUMBER: 24616734 BUSINESS ADDRESS: STREET 1: 101 TOWNSEND ST. CITY: SAN FRANCISCO STATE: CA ZIP: 94107 BUSINESS PHONE: 888.993.5273 MAIL ADDRESS: STREET 1: 101 TOWNSEND ST. CITY: SAN FRANCISCO STATE: CA ZIP: 94107 FORMER COMPANY: FORMER CONFORMED NAME: CloudFlare, Inc. DATE OF NAME CHANGE: 20091120 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Capital World Investors CENTRAL INDEX KEY: 0001422849 ORGANIZATION NAME: IRS NUMBER: 951411037 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: SC 13G/A BUSINESS ADDRESS: STREET 1: 333 SOUTH HOPE STREET STREET 2: 55TH FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90071 BUSINESS PHONE: 213-486-9200 MAIL ADDRESS: STREET 1: 333 SOUTH HOPE STREET STREET 2: 55TH FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90071 SC 13G/A 1 SEC13G_Filing.htm SEC SCHEDULE 13G UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13G Under the Securities Exchange Act of 1934 (Amendment No. 1 ) * Cloudflare, Inc. (Name of Issuer) Common Stock (Title of Class of Securities) 18915M107 (CUSIP Number) December 29, 2023 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: [X] Rule 13d-1(b) [ ] Rule 13d-1(c) [ ] Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter the disclosures provided in a prior cover page. The information required in the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 (the "Act") or otherwise subject to the liabilities of that section of the Act, but shall be subject to all other provisions of the Act (however, see the Notes.) CUSIP No. 18915M107 1. NAMES OF REPORTING PERSONS I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY) Capital World Investors 95-1411037 2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] (b) [ ] 3. SEC USE ONLY 4. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH 5. SOLE VOTING POWER 27,752,753 6. SHARED VOTING POWER 0 7. SOLE DISPOSITIVE POWER 27,791,766 8. SHARED DISPOSITIVE POWER 0 9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 27,791,766 Beneficial ownership disclaimed pursuant to Rule 13d-4 10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES [ ] 11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) 9.4% 12. TYPE OF REPORTING PERSON IA Item 1. (a) Name of Issuer Cloudflare, Inc. (b) Address of Issuer's Principal Executive Offices 101 Townsend Street, San Francisco, CA 94107 Item 2. (a) Name of Person Filing Capital World Investors (b) Address of Principal Business Office or, if None, Residence 333 SOUTH HOPE STREET, 55TH FLOOR, LOS ANGELES, CALIFORNIA 90071 (c) Citizenship N/A (d) Title of Class of Securities Common Stock (e) CUSIP Number 18915M107 Item 3. If This Statement is Filed Pursuant to Rule 13d-1(b), or 13d-2(b) or (c), Check Whether the Person Filing is a: (a) [ ] Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o). (b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c). (c) [ ] Insurance Company as defined in Se