Cloudflare (NYSE:NET) Director Sells $1,081,042.38 in Stock

Key Points

• Director Carl Ledbetter sold 5,009 shares on May 1 at an average price of $215.82 for proceeds of $1,081,042.38 under a pre-arranged Rule 10b5-1 plan, leaving him with 923,073 shares (a 0.54% reduction in ownership).
• Ledbetter also sold 9,991 shares on April 28 and 15,000 shares on March 18 (at average prices of $215.85 and $227.05, respectively), indicating multiple recent insider dispositions.
• Market context: NET traded up 2.8% to $223.66 with a $78.72B market cap; analysts have a consensus rating of “Moderate Buy” (target $232.62), after Cloudflare slightly beat recent revenue and EPS estimates but still shows negative margins and a projected FY EPS of -0.11.

Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Carl Ledbetter sold 5,009 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $215.82, for a total value of $1,081,042.38. Following the completion of the transaction, the director owned 923,073 shares of the company's stock, valued at approximately $199,217,614.86. This represents a 0.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carl Ledbetter also recently made the following trade(s):

• On Tuesday, April 28th, Carl Ledbetter sold 9,991 shares of Cloudflare stock. The shares were sold at an average price of $215.85, for a total value of $2,156,557.35.
• On Wednesday, March 18th, Carl Ledbetter sold 15,000 shares of Cloudflare stock. The shares were sold at an average price of $227.05, for a total value of $3,405,750.00.

Cloudflare Stock Up 2.8%

NET stock traded up $6.16 during mid-day trading on Monday, reaching $223.66. The company had a trading volume of 2,771,949 shares, compared to its average volume of 4,518,327. The company has a debt-to-equity ratio of 1.35, a current ratio of 1.98 and a quick ratio of 1.98. The stock has a 50 day simple moving average of $199.89 and a two-hundred day simple moving average of $200.05. The company has a market capitalization of $78.72 billion, a price-to-earnings ratio of -771.21 and a beta of 1.67. Cloudflare, Inc. has a 52 week low of $120.46 and a 52 week high of $260.00.

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

Analyst Upgrades and Downgrades

NET has been the topic of a number of recent analyst reports. New Street Research set a $140.00 target price on Cloudflare in a report on Wednesday, February 11th. Truist Financial set a $225.00 price objective on shares of Cloudflare in a research report on Tuesday, January 20th. Wells Fargo & Company lifted their price objective on shares of Cloudflare from $265.00 to $270.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 11th. Mizuho dropped their price objective on shares of Cloudflare from $255.00 to $235.00 and set an "outperform" rating on the stock in a research report on Tuesday, April 14th. Finally, The Goldman Sachs Group lowered shares of Cloudflare from a "buy" rating to a "sell" rating in a research report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Cloudflare presently has a consensus rating of "Moderate Buy" and a consensus target price of $232.62.

Institutional Trading of Cloudflare

Institutional investors have recently added to or reduced their stakes in the company. HM Payson & Co. bought a new stake in Cloudflare in the 4th quarter valued at $25,000. Physician Wealth Advisors Inc. boosted its stake in Cloudflare by 693.3% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock valued at $26,000 after purchasing an additional 104 shares during the period. Wiser Advisor Group LLC bought a new stake in Cloudflare in the 3rd quarter valued at $26,000. Westside Investment Management Inc. boosted its stake in Cloudflare by 100.0% in the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company's stock valued at $28,000 after purchasing an additional 65 shares during the period. Finally, ORG Wealth Partners LLC boosted its stake in Cloudflare by 101.4% in the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company's stock valued at $30,000 after purchasing an additional 70 shares during the period. 82.68% of the stock is currently owned by institutional investors.

Cloudflare Company Profile

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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