Insider Selling: Cloudflare (NYSE:NET) Insider Sells 35,100 Shares of Stock

Key Points

• Cloudflare insider Michelle Zatlyn sold over $6.7 million worth of shares, reducing her ownership by 70.66% after the sale of 35,100 shares at an average price of $191.71 each.
• The company's shares experienced a slight decline of 0.2%, trading at $195.85 with a significant trading volume of 1,244,738 shares.
• Cloudflare reported a quarterly revenue increase of 27.8% year-over-year, surpassing revenue expectations and posting earnings per share of $0.21, exceeding estimates by $0.03.

Cloudflare, Inc. (NYSE:NET - Get Free Report) insider Michelle Zatlyn sold 35,100 shares of Cloudflare stock in a transaction on Thursday, August 21st. The shares were sold at an average price of $191.71, for a total value of $6,729,021.00. Following the completion of the transaction, the insider owned 14,575 shares in the company, valued at $2,794,173.25. The trade was a 70.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Michelle Zatlyn also recently made the following trade(s):

• On Monday, August 25th, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $195.61, for a total value of $5,015,636.01.
• On Friday, August 22nd, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The stock was sold at an average price of $193.23, for a total value of $4,954,610.43.
• On Thursday, July 17th, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $190.68, for a total transaction of $4,889,225.88.
• On Tuesday, July 15th, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The stock was sold at an average price of $182.80, for a total transaction of $4,687,174.80.
• On Thursday, June 5th, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $171.41, for a total transaction of $4,395,123.81.
• On Wednesday, June 4th, Michelle Zatlyn sold 25,642 shares of Cloudflare stock. The stock was sold at an average price of $173.00, for a total value of $4,436,066.00.

Cloudflare Stock Up 3.9%

NYSE NET traded up $8.02 during mid-day trading on Thursday, reaching $213.26. 2,730,984 shares of the company's stock traded hands, compared to its average volume of 3,577,831. The company has a current ratio of 5.14, a quick ratio of 5.14 and a debt-to-equity ratio of 2.63. Cloudflare, Inc. has a 1-year low of $74.88 and a 1-year high of $219.00. The company has a fifty day simple moving average of $194.93 and a 200-day simple moving average of $157.75. The company has a market cap of $74.32 billion, a price-to-earnings ratio of -627.24 and a beta of 1.84.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.21 earnings per share for the quarter, topping analysts' consensus estimates 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 business had revenue of $512.32 million during the quarter, compared to the consensus estimate of $501.58 million. During the same quarter last year, the company earned $0.20 earnings per share. The business's quarterly revenue was up 27.8% compared to the same quarter last year. 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, equities research analysts expect that Cloudflare, Inc. will post -0.11 EPS for the current year.

Analysts Set New Price Targets

A number of research firms have commented on NET. Oppenheimer reaffirmed an "outperform" rating and set a $200.00 target price (up previously from $165.00) on shares of Cloudflare in a report on Thursday, June 5th. Scotiabank raised their price objective on Cloudflare from $135.00 to $200.00 and gave the stock a "sector perform" rating in a research note on Friday, August 1st. Morgan Stanley boosted their target price 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. Jefferies Financial Group dropped their target price on shares of Cloudflare from $170.00 to $150.00 and set a "hold" rating on the stock in a report on Friday, May 9th. Finally, CICC Research raised shares of Cloudflare from a "market perform" rating to an "outperform" rating and set a $154.00 price target for the company in a report on Monday, May 12th. One investment 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 stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $191.28.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP lifted its holdings in Cloudflare by 5.4% in the 4th quarter. Dimensional Fund Advisors LP now owns 361,607 shares of the company's stock valued at $38,943,000 after acquiring an additional 18,457 shares during the last quarter. MML Investors Services LLC lifted its stake in Cloudflare by 7.7% during the fourth quarter. MML Investors Services LLC now owns 30,658 shares of the company's stock valued at $3,301,000 after purchasing an additional 2,186 shares during the last quarter. Tower Research Capital LLC TRC boosted its holdings in Cloudflare by 184.3% during the fourth quarter. Tower Research Capital LLC TRC now owns 2,547 shares of the company's stock worth $274,000 after buying an additional 1,651 shares in the last quarter. Stifel Financial Corp grew its position in Cloudflare by 30.6% in the fourth quarter. Stifel Financial Corp now owns 47,050 shares of the company's stock worth $5,066,000 after buying an additional 11,011 shares during the last quarter. Finally, Integrated Wealth Concepts LLC grew its position in Cloudflare by 59.6% in the fourth quarter. Integrated Wealth Concepts LLC now owns 9,068 shares of the company's stock worth $976,000 after buying an additional 3,388 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Cloudflare Company Profile

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.