Cloudflare (NYSE:NET) CEO Sells $11,184,141.38 in Stock

Key Points

• Matthew Prince, CEO of Cloudflare, sold $11,184,141.38 worth of stock, significantly reducing his holdings by almost 99.80% to just 107 shares.
• Cloudflare's stock recently traded down 2.9% to $210.97, with a market capitalization of $73.52 billion and a PE ratio of -620.50.
• Several large investors have increased their stakes in Cloudflare, with 82.68% of the stock now held by institutional investors and hedge funds.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CEO Matthew Prince sold 52,277 shares of Cloudflare stock in a transaction dated Thursday, October 16th. The stock was sold at an average price of $213.94, for a total value of $11,184,141.38. Following the completion of the transaction, the chief executive officer owned 107 shares of the company's stock, valued at approximately $22,891.58. This represents a 99.80% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

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

• On Tuesday, October 14th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $215.51, for a total value of $11,289,275.84.
• On Thursday, October 16th, Matthew Prince sold 107 shares of Cloudflare stock. The stock was sold at an average price of $220.79, for a total value of $23,624.53.
• On Thursday, September 11th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $226.46, for a total transaction of $11,862,880.64.
• On Tuesday, September 9th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $217.12, for a total transaction of $11,373,614.08.
• On Wednesday, August 20th, Matthew Prince sold 51,848 shares of Cloudflare stock. The stock was sold at an average price of $190.46, for a total transaction of $9,874,970.08.
• On Monday, August 18th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $200.43, for a total value of $10,499,325.12.
• On Wednesday, August 20th, Matthew Prince sold 536 shares of Cloudflare stock. The stock was sold at an average price of $194.84, for a total value of $104,434.24.

Cloudflare Trading Down 2.9%

NET traded down $6.41 during trading hours on Thursday, reaching $210.97. 2,586,679 shares of the company's stock traded hands, compared to its average volume of 3,346,638. Cloudflare, Inc. has a 52-week low of $85.60 and a 52-week high of $230.10. The firm has a market capitalization of $73.52 billion, a PE ratio of -620.50 and a beta of 1.99. The firm has a 50-day moving average price of $212.53 and a 200 day moving average price of $176.89. The company has a quick ratio of 5.14, a current ratio of 5.14 and a debt-to-equity ratio of 2.63.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.18 by $0.03. Cloudflare had a negative net margin of 6.22% and a negative return on equity of 8.42%. The firm had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. During the same quarter in the previous year, the firm posted $0.20 earnings per share. The company's revenue was up 27.8% on a year-over-year basis. Cloudflare has set its FY 2025 guidance at 0.850-0.860 EPS. Q3 2025 guidance at 0.230-0.23 EPS. As a group, sell-side analysts predict that Cloudflare, Inc. will post -0.11 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Norges Bank acquired a new stake in Cloudflare in the 2nd quarter valued at $541,462,000. Groupama Asset Managment acquired a new stake in Cloudflare in the 2nd quarter valued at $225,204,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Cloudflare by 33.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 3,129,030 shares of the company's stock worth $352,610,000 after buying an additional 786,063 shares during the last quarter. Nuveen LLC acquired a new stake in Cloudflare in the 1st quarter worth about $88,203,000. Finally, American Century Companies Inc. boosted its holdings in Cloudflare by 34.5% in the 1st quarter. American Century Companies Inc. now owns 3,037,420 shares of the company's stock worth $342,287,000 after buying an additional 779,819 shares during the last quarter. 82.68% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. Morgan Stanley increased their price objective on shares of Cloudflare from $225.00 to $235.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. DZ Bank reissued a "sell" rating and issued a $170.00 price target on shares of Cloudflare in a research report on Tuesday, July 22nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Cloudflare in a research report on Wednesday, October 8th. Bank of America raised their price objective on Cloudflare from $235.00 to $240.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Royal Bank Of Canada raised their target price on Cloudflare from $210.00 to $228.00 and gave the stock an "outperform" rating in a research note on Friday, August 1st. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, Cloudflare currently has an average rating of "Moderate Buy" and a consensus price target of $196.54.

About Cloudflare

Cloudflare, Inc operates as a cloud services provider that delivers a range of services to businesses worldwide. The company provides an integrated cloud-based security solution to secure a range of combination of platforms, including public cloud, private cloud, on-premise, software-as-a-service applications, and IoT devices; and website and application security products comprising web application firewall, bot management, distributed denial of service, API gateways, SSL/TLS encryption, script management, security center, and rate limiting products.

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