Cloudflare (NYSE:NET) Director Sells $3,571,800.00 in Stock

Key Points

• Director Carl Ledbetter sold 15,000 shares on May 5 at an average of $238.12 for $3,571,800 under a pre-arranged Rule 10b5-1 plan, leaving him with 908,073 shares (a 1.63% reduction).
• Shares rose about 9% to $244.46 on heavy volume, with Cloudflare sporting a market cap near $86.0 billion and a 52-week range of $120.46–$260.00.
• Analyst coverage is mixed but leans positive (MarketBeat consensus: Moderate Buy), with a consensus target of $232.62 and recent catalysts including a Forrester leadership nod and a Jim Cramer mention offset by some downgrades.

Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Carl Ledbetter sold 15,000 shares of Cloudflare stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $238.12, for a total transaction of $3,571,800.00. Following the transaction, the director directly owned 908,073 shares of the company's stock, valued at $216,230,342.76. This represents a 1.63% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Friday, May 1st, Carl Ledbetter sold 5,009 shares of Cloudflare stock. The shares were sold at an average price of $215.82, for a total transaction of $1,081,042.38.
• 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 transaction of $2,156,557.35.
• On Wednesday, March 18th, Carl Ledbetter sold 15,000 shares of Cloudflare stock. The stock was sold at an average price of $227.05, for a total value of $3,405,750.00.

Cloudflare Trading Up 9.0%

Shares of NET stock traded up $20.29 during mid-day trading on Tuesday, hitting $244.46. The company's stock had a trading volume of 7,166,977 shares, compared to its average volume of 4,549,866. The company has a market cap of $86.04 billion, a PE ratio of -842.92 and a beta of 1.67. 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 company's fifty day simple moving average is $199.89 and its 200-day simple moving average is $200.05. 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 announced its earnings results on Tuesday, February 10th. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.27 by $0.01. The company had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The firm's revenue for the quarter was up 33.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.19 EPS. As a group, equities research analysts expect that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Forrester named Cloudflare a Leader in its Edge Development Platforms report — independent validation of Cloudflare’s edge/developer strategy that supports medium-term revenue & enterprise adoption. Forrester Wave: Edge Development Platforms
• Positive Sentiment: Broker and rating upgrades/metrics jumped (composite rating upgrade and RS rating to 83), which can attract momentum buyers and technical traders ahead of earnings. Composite Rating Upgrade
• Positive Sentiment: Jim Cramer spotlighted Cloudflare as a “terrific cyber defender” on Mad Money, increasing retail visibility and short-term buying interest into the print. Jim Cramer Mention
• Positive Sentiment: Analyst consensus still implies upside (average targets ~\$230s) and coverage remains constructive overall, supporting demand from institutional buyers. Brokerage Coverage
• Neutral Sentiment: Earnings previews note strong AI and enterprise tailwinds for Q1 but flag macro pressure and possible large-deal timing delays — a mixed setup where upside from AI adoption competes with near-term execution risk. Q1 Earnings Preview
• Neutral Sentiment: Director Carl Ledbetter sold 5,009 shares under a pre-arranged Rule 10b5-1 plan — a routine liquidity event that is unlikely to signal new negative information. SEC Filing - Ledbetter
• Neutral Sentiment: Coverage is mixed across outlets (some raising targets, others trimming) — keeps headline upside intact but limits conviction for big upgrades. Analysts Conflicted
• Negative Sentiment: Seeking Alpha issued a rating downgrade to Hold citing valuation that has caught up to the growth story — a call that may weigh on value-focused funds and prompt some profit-taking. Seeking Alpha Downgrade
• Negative Sentiment: Insider sale: Director Mark Hawkins sold 133 shares (small position reduction); while immaterial in size, any insider selling can be read negatively by short-term traders. SEC Filing - Hawkins

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on NET shares. Truist Financial set a $225.00 price objective on shares of Cloudflare in a research note on Tuesday, January 20th. Royal Bank Of Canada lifted their price target on shares of Cloudflare from $230.00 to $240.00 and gave the company an "outperform" rating in a research note on Wednesday, February 11th. Susquehanna set a $190.00 price objective on shares of Cloudflare in a report on Thursday, February 12th. Piper Sandler raised shares of Cloudflare from a "neutral" rating to an "overweight" rating and set a $222.00 price objective on the stock in a research report on Tuesday, April 14th. Finally, KeyCorp lowered Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $232.62.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of NET. Physician Wealth Advisors Inc. increased its position in shares of Cloudflare by 693.3% during the third quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company's stock worth $26,000 after acquiring an additional 104 shares in the last quarter. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare in the 3rd quarter worth about $26,000. HM Payson & Co. bought a new position in Cloudflare in the 4th quarter valued at about $25,000. Westside Investment Management Inc. boosted its stake in Cloudflare by 100.0% during 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 last quarter. Finally, ORG Wealth Partners LLC boosted its stake in Cloudflare by 101.4% during 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 last quarter. Institutional investors and hedge funds 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.

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.