Cloudflare (NYSE:NET) CEO Sells $9,958,139.10 in Stock

Key Points

• Cloudflare CEO Matthew Prince sold 33,631 shares for approximately $9.96 million at an average price of $296.10 under a pre-arranged Rule 10b5-1 plan. The sale followed several other recent transactions by Prince.
• Cloudflare shares fell 3.2% to $291.71, though they remained near their 12-month high of $305.00. The company’s valuation remains exceptionally elevated, increasing the risk of a sharp reaction if growth or guidance disappoints.
• Cloudflare recently exceeded quarterly revenue and EPS expectations, with revenue up 33.5% year over year, while analysts maintain a generally positive outlook and expect further growth acceleration. New AI security and infrastructure products are viewed as potential growth catalysts.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CEO Matthew Prince sold 33,631 shares of the company's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $296.10, for a total value of $9,958,139.10. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Monday, August 3rd, Matthew Prince sold 52,383 shares of Cloudflare stock. The stock was sold at an average price of $283.42, for a total value of $14,846,389.86.
• On Tuesday, August 4th, Matthew Prince sold 20,101 shares of Cloudflare stock. The shares were sold at an average price of $296.89, for a total value of $5,967,785.89.
• On Wednesday, August 5th, Matthew Prince sold 18,752 shares of Cloudflare stock. The stock was sold at an average price of $296.10, for a total value of $5,552,467.20.
• On Tuesday, August 4th, Matthew Prince sold 32,282 shares of Cloudflare stock. The stock was sold at an average price of $298.44, for a total transaction of $9,634,240.08.
• On Monday, July 6th, Matthew Prince sold 52,383 shares of Cloudflare stock. The shares were sold at an average price of $247.28, for a total transaction of $12,953,268.24.
• On Thursday, July 2nd, Matthew Prince sold 33,631 shares of Cloudflare stock. The shares were sold at an average price of $242.24, for a total transaction of $8,146,773.44.
• On Wednesday, July 1st, Matthew Prince sold 52,422 shares of Cloudflare stock. The stock was sold at an average price of $249.09, for a total transaction of $13,057,795.98.
• On Thursday, July 2nd, Matthew Prince sold 18,752 shares of Cloudflare stock. The stock was sold at an average price of $242.24, for a total transaction of $4,542,484.48.
• On Monday, June 22nd, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $217.91, for a total transaction of $11,414,997.44.
• On Wednesday, June 24th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $224.30, for a total value of $11,749,731.20.

Cloudflare Stock Down 3.2%

NET stock traded down $9.62 during trading on Wednesday, reaching $291.71. 3,953,788 shares of the stock were exchanged, compared to its average volume of 3,062,454. The firm's 50 day moving average is $254.72 and its 200 day moving average is $217.56. Cloudflare, Inc. has a twelve month low of $158.83 and a twelve month high of $305.00. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The firm has a market cap of $103.11 billion, a P/E ratio of -1,166.83, a price-to-earnings-growth ratio of 225.36 and a beta of 1.65.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm had revenue of $639.75 million during the quarter, compared to analysts' expectations of $620.83 million. During the same quarter last year, the firm posted $0.16 earnings per share. The company's revenue for the quarter was up 33.5% compared to the same quarter last year. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, research analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current year.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: New AI security tools expand Cloudflare’s addressable market. Cloudflare launched Identity-Aware AI Gateway, which allows companies to monitor employee and AI-agent use, control spending, identify users, and flag risky content. The product could support demand for Cloudflare’s security and connectivity platform as businesses adopt AI. Cloudflare Gives Companies Full Visibility to Audit and Analyze AI Use
• Positive Sentiment: Cloudflare OS strengthens its AI infrastructure strategy. The company announced an open-source AI workspace running on its global network, giving employees secure access to AI tools and internal systems without requiring new infrastructure. Separately, Cloudflare is developing identity and wallet capabilities for AI agents, potentially creating additional enterprise monetization opportunities. Cloudflare OS Is the First AI Workspace Built Around How Companies Actually Work
• Positive Sentiment: Jefferies expects revenue acceleration and possible guidance increases. Analysts are looking for second-quarter revenue growth near 30% and a path toward mid-30% growth by the end of 2026. A stronger outlook could support the stock, particularly because Cloudflare previously exceeded revenue and adjusted EPS expectations. Cloudflare Poised for Second Quarter Revenue Acceleration, Says Jefferies
• Neutral Sentiment: Earnings are the immediate catalyst. Investors will focus on revenue growth, margins, free cash flow, AI-related demand, and full-year guidance. Cloudflare’s prior quarter included 33.5% year-over-year revenue growth and an EPS beat.
• Neutral Sentiment: A director’s stock sale has limited signaling value. Mark Hawkins sold 133 shares worth approximately $36,939 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 1.24% while retaining 10,632 shares. SEC Insider Filing
• Negative Sentiment: Valuation leaves little room for disappointment. Cloudflare trades at exceptionally high sales and earnings multiples, so even a quarterly beat may not satisfy investors unless growth, profitability, or guidance materially exceeds already elevated expectations. Three Things I Love About Cloudflare and Why I’m Stuck at Hold Anyway

Analyst Ratings Changes

A number of analysts have commented on NET shares. KeyCorp reissued an "overweight" rating on shares of Cloudflare in a report on Wednesday, June 10th. Citizens Jmp lifted their target price on Cloudflare from $270.00 to $330.00 and gave the company a "market outperform" rating in a research report on Monday, July 20th. Scotiabank raised shares of Cloudflare from a "sector perform" rating to a "sector outperform" rating and lifted their price objective for the stock from $225.00 to $300.00 in a report on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a "buy" rating in a research note on Tuesday, July 7th. Finally, Truist Financial increased their target price on shares of Cloudflare from $250.00 to $300.00 and gave the company a "buy" rating in a report on Tuesday, July 21st. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, Cloudflare presently has an average rating of "Moderate Buy" and an average target price of $265.27.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NET. Lingotto Investment Management LLP purchased a new position in shares of Cloudflare in the fourth quarter valued at $34,626,000. Jupiter Asset Management Ltd. lifted its stake in Cloudflare by 1,984.7% in the 4th quarter. Jupiter Asset Management Ltd. now owns 197,710 shares of the company's stock worth $38,979,000 after purchasing an additional 188,226 shares in the last quarter. Trek Financial LLC purchased a new stake in shares of Cloudflare in the fourth quarter worth $1,793,000. Massachusetts Financial Services Co. MA boosted its stake in Cloudflare by 25.8% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after buying an additional 336,768 shares during the period. Finally, Pictet Asset Management Holding SA grew its holdings in shares of Cloudflare by 17.6% during the first quarter. Pictet Asset Management Holding SA now owns 1,381,985 shares of the company's stock worth $284,900,000 after purchasing an additional 206,506 shares in the last quarter. 82.68% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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