Cloudflare (NYSE:NET) Director Sells 5,000 Shares

Key Points

• Cloudflare director Carl Ledbetter sold 5,000 shares at an average price of $281.98, generating $1.41 million. The sale was made under a pre-arranged Rule 10b5-1 plan, leaving him with 883,073 shares.
• Cloudflare exceeded second-quarter expectations, reporting adjusted EPS of $0.29 versus $0.27 expected and revenue of $696.06 million versus $664.66 million, up 35.9% year over year. Third-quarter guidance also came in above consensus, with projected EPS of $0.34 and revenue of $736 million to $737 million.
• Shares fell 3.3% to $283.33 despite the strong results. Analysts maintain a “Moderate Buy” consensus rating, while the company’s elevated valuation, negative net margin and continued insider selling remain risks.

Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Carl Ledbetter sold 5,000 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $281.98, for a total transaction of $1,409,900.00. Following the completion of the transaction, the director owned 883,073 shares in the company, valued at approximately $249,008,924.54. This represents a 0.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Tuesday, July 7th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The shares were sold at an average price of $268.11, for a total transaction of $1,340,550.00.

Cloudflare Trading Down 3.3%

NYSE NET traded down $9.63 on Thursday, reaching $283.33. The stock had a trading volume of 5,482,078 shares, compared to its average volume of 4,307,386. The firm has a market capitalization of $100.15 billion, a price-to-earnings ratio of -1,133.31, a P/E/G ratio of 225.36 and a beta of 1.65. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $305.00. The stock has a fifty day moving average price of $254.72 and a two-hundred day moving average price of $217.56.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The business had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same period last year, the business posted $0.21 earnings per share. The company's quarterly revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, sell-side analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have issued reports on NET shares. Scotiabank upgraded shares of Cloudflare from a "sector perform" rating to a "sector outperform" rating and boosted their price target for the stock from $225.00 to $300.00 in a research note on Tuesday, July 7th. Barclays raised their price objective on shares of Cloudflare from $250.00 to $300.00 and gave the company an "overweight" rating in a research note on Monday, July 13th. Wells Fargo & Company upped their target price on shares of Cloudflare from $270.00 to $300.00 and gave the stock an "overweight" rating in a research note on Monday, July 20th. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a "buy" rating in a report on Tuesday, July 7th. Finally, Guggenheim restated a "sell" rating and issued a $140.00 price target on shares of Cloudflare in a research note on Wednesday, June 10th. 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 issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $265.27.

Trending Headlines about Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results exceeded estimates. Cloudflare reported adjusted EPS of $0.29, ahead of the $0.27 consensus, while revenue reached $696.06 million versus expectations of $664.66 million. The revenue beat indicates continued demand for the company’s connectivity, security and developer services. Cloudflare Stock Pops on Q2 Earnings Print
• Positive Sentiment: Third-quarter guidance was well above consensus. Cloudflare forecast EPS of $0.34 and revenue of $736 million to $737 million, compared with analyst estimates of $0.26 and $722.4 million, respectively. The outlook suggests management expects momentum to continue and may help support the company’s growth premium. Cloudflare Q2 Earnings and Guidance
• Positive Sentiment: AI product expansion adds to the growth story. Cloudflare launched an AEO Visibility Dashboard that shows whether AI assistants recommend a customer’s business. The company also recently introduced Identity-Aware AI Gateway and Cloudflare OS, expanding its opportunity in AI security, governance and enterprise infrastructure. Cloudflare Adds AEO Visibility Dashboard
• Neutral Sentiment: Profitability remains a consideration. Despite the adjusted EPS beat, Cloudflare continues to report a negative net margin and negative return on equity. Investors will likely focus on whether strong revenue growth translates into sustained GAAP profitability and cash-flow improvement.
• Negative Sentiment: Valuation and insider selling remain risks. Cloudflare’s market capitalization and valuation multiples leave limited room for weaker growth or disappointing guidance. CEO Matthew Prince also sold multiple blocks of shares totaling tens of millions of dollars under pre-arranged Rule 10b5-1 plans. While scheduled sales do not necessarily signal deteriorating fundamentals, they may temper sentiment. Cloudflare CEO Stock Sale

Institutional Trading of Cloudflare

A number of large investors have recently made changes to their positions in NET. HM Payson & Co. acquired a new position in Cloudflare during the 4th quarter worth approximately $25,000. Wiser Advisor Group LLC acquired a new stake in shares of Cloudflare in the 3rd quarter valued at $26,000. Wexford Capital LP purchased a new stake in shares of Cloudflare during the 3rd quarter worth $30,000. CX Institutional lifted its position in shares of Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after purchasing an additional 44 shares during the last quarter. Finally, Cape Investment Advisory Inc. acquired a new position in shares of Cloudflare during the second quarter worth $33,000. 82.68% of the stock is currently owned by hedge funds and other 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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