Cloudflare (NYSE:NET) CEO Matthew Prince Sells 38,766 Shares

Key Points

• Cloudflare CEO Matthew Prince sold 38,766 shares on March 18 at an average of $218.87 for about $8.48M, cutting his direct stake by 74% to 13,618 shares.
• Despite these insider sales (the CFO also sold and overall insider selling has been heavy), Cloudflare shares rose roughly 6.6% to $225.45 after a revenue beat (revenue +33.6% YoY) and a slight EPS beat, with analysts' consensus target near $233.38.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CEO Matthew Prince sold 38,766 shares of Cloudflare stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $218.87, for a total transaction of $8,484,714.42. Following the transaction, the chief executive officer directly owned 13,618 shares in the company, valued at approximately $2,980,571.66. The trade was a 74.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.

Matthew Prince also recently made the following trade(s):

• On Monday, March 16th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $209.08, for a total value of $10,952,446.72.
• On Wednesday, March 18th, Matthew Prince sold 13,618 shares of Cloudflare stock. The shares were sold at an average price of $227.80, for a total value of $3,102,180.40.
• On Thursday, February 26th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $173.78, for a total value of $9,103,291.52.
• On Tuesday, February 24th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $164.15, for a total value of $8,598,833.60.
• On Thursday, January 8th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $189.47, for a total value of $9,925,196.48.
• On Tuesday, January 6th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $194.77, for a total value of $10,202,831.68.

Cloudflare Stock Up 6.6%

Cloudflare stock traded up $13.93 during trading hours on Wednesday, reaching $225.45. The stock had a trading volume of 5,965,172 shares, compared to its average volume of 3,931,818. Cloudflare, Inc. has a 52 week low of $89.42 and a 52 week high of $260.00. 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 business's 50 day moving average price is $186.34 and its 200-day moving average price is $203.14.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.27 by $0.01. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The business had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. During the same period in the previous year, the company earned $0.19 earnings per share. The business's revenue for the quarter was up 33.6% on a year-over-year basis. As a group, equities analysts anticipate that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Analyst Ratings Changes

Several analysts have weighed in on the stock. Piper Sandler boosted their target price on shares of Cloudflare from $220.00 to $222.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 11th. Jefferies Financial Group lifted their price objective on shares of Cloudflare from $185.00 to $225.00 and gave the stock a "hold" rating in a research note on Wednesday, February 11th. Truist Financial set a $225.00 target price on Cloudflare in a research report on Tuesday, January 20th. Mizuho lowered their price target on Cloudflare from $280.00 to $255.00 and set an "outperform" rating for the company in a research report on Wednesday, January 21st. Finally, Barclays boosted their price target on Cloudflare from $235.00 to $250.00 and gave the company an "overweight" rating in a research note on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $233.38.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Order-flow bullish signal (“Power Inflow”) triggered, drawing momentum and institutional order-flow buying that can accelerate short-term moves. Cloudflare Shares Rise Nearly 7% After Key Trading Signal
• Positive Sentiment: AI/enterprise growth narrative: analysts and commentators point to rising AI-driven network activity, bigger enterprise deals, and Cloudflare’s edge/AI positioning as the fundamental rationale for upside. Cloudflare shares rise as AI/enterprise growth narrative keeps gaining traction
• Positive Sentiment: Technology/edge angle: coverage calling Cloudflare well positioned for AI at the edge has added retail/momentum interest. Cloudflare Surges 8%: NVIDIA's AI Boom Is Coming for the Edge and This Stock Is Ready
• Neutral Sentiment: Analyst/target activity is supportive (multiple buy/outperform ratings and elevated median targets) but analysts’ estimates still reflect near-term profitability headwinds—so impact is mixed. Analyst Coverage Summary
• Negative Sentiment: CEO Matthew Prince executed large open-market sales this week (multiple filings) that materially reduced his direct stake — a signal some investors interpret as a near-term negative. SEC Form 4 — Matthew Prince
• Negative Sentiment: CFO Thomas Seifert also sold shares (SEC filing), and data show heavy insider selling activity across the company lately — this can weigh on sentiment if investors read it as insiders cashing out. CFO Sale / Insider Trades

Institutional Trading of Cloudflare

A number of hedge funds have recently modified their holdings of the stock. Rakuten Investment Management Inc. purchased a new stake in Cloudflare in the 3rd quarter worth approximately $138,660,000. Allianz Asset Management GmbH increased its holdings in shares of Cloudflare by 322.4% during the 3rd quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock valued at $13,987,000 after purchasing an additional 49,749 shares in the last quarter. National Pension Service lifted its stake in shares of Cloudflare by 1.0% in the 3rd quarter. National Pension Service now owns 618,662 shares of the company's stock valued at $132,759,000 after purchasing an additional 5,939 shares during the period. Westfield Capital Management Co. LP acquired a new position in shares of Cloudflare in the 2nd quarter valued at $87,868,000. Finally, Swedbank AB boosted its holdings in Cloudflare by 27.7% during the third quarter. Swedbank AB now owns 43,878 shares of the company's stock worth $9,416,000 after buying an additional 9,527 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.

About Cloudflare

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.

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