Insider Selling: Cloudflare (NYSE:NET) Insider Sells $11,494,614.87 in Stock

Key Points

• Cloudflare insider Michelle Zatlyn sold 33,003 shares for approximately $11.49 million at an average price of $348.29 under a pre-arranged Rule 10b5-1 plan, reducing her direct ownership by 32.11%.
• Cloudflare shares closed at $342.19, near the company’s 12-month high of $370.35, while valuation remained elevated with a market capitalization of about $121 billion and a price-to-earnings ratio near -590.
• The company reported quarterly revenue growth of 35.9% and exceeded earnings expectations, supporting a generally bullish analyst outlook; however, analysts and commentators flagged valuation as a key risk despite a “Moderate Buy” consensus rating.

Cloudflare, Inc. (NYSE:NET - Get Free Report) insider Michelle Zatlyn sold 33,003 shares of the company's stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $348.29, for a total value of $11,494,614.87. Following the completion of the transaction, the insider directly owned 69,775 shares in the company, valued at approximately $24,301,934.75. The trade was a 32.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Monday, October 5th, Michelle Zatlyn sold 33,003 shares of Cloudflare stock. The shares were sold at an average price of $352.60, for a total value of $11,636,857.80.
• On Tuesday, September 8th, Michelle Zatlyn sold 33,003 shares of Cloudflare stock. The stock was sold at an average price of $277.43, for a total value of $9,156,022.29.
• On Thursday, September 3rd, Michelle Zatlyn sold 33,003 shares of Cloudflare stock. The stock was sold at an average price of $278.92, for a total transaction of $9,205,196.76.
• On Friday, August 21st, Michelle Zatlyn sold 33,003 shares of Cloudflare stock. The stock was sold at an average price of $277.43, for a total transaction of $9,156,022.29.
• On Wednesday, August 19th, Michelle Zatlyn sold 33,003 shares of Cloudflare stock. The shares were sold at an average price of $294.63, for a total transaction of $9,723,673.89.

Cloudflare Stock Performance

Shares of NET stock traded down $12.82 during trading hours on Wednesday, hitting $342.19. The company's stock had a trading volume of 2,324,437 shares, compared to its average volume of 3,191,364. The company has a 50 day moving average of $313.26 and a 200 day moving average of $258.43. The stock has a market cap of $120.96 billion, a PE ratio of -589.99, a price-to-earnings-growth ratio of 282.35 and a beta of 1.65. The company has a current ratio of 1.82, a quick ratio of 1.82 and a debt-to-equity ratio of 1.22. Cloudflare, Inc. has a 12-month low of $158.83 and a 12-month high of $370.35.

Cloudflare (NYSE:NET - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.02. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million for the quarter, compared to analyst estimates of $664.66 million. During the same quarter in the prior year, the business earned $0.21 earnings per share. The business's quarterly revenue was up 35.9% compared to the same quarter last year. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. On average, sell-side analysts forecast that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the company. Citizens Jmp reiterated a "market outperform" rating and set a $394.00 price objective on shares of Cloudflare in a research note on Monday, August 31st. New Street Research restated a "market outperform" rating on shares of Cloudflare in a research note on Monday, June 15th. Wells Fargo & Company raised their target price on Cloudflare from $300.00 to $380.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Guggenheim lifted their price target on Cloudflare from $140.00 to $160.00 and gave the company a "sell" rating in a research report on Friday, August 7th. Finally, UBS Group boosted their price target on Cloudflare from $250.00 to $350.00 and gave the company a "neutral" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, seven have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $326.33.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: BTIG raised its price target to $413 from $382 and maintained a Buy rating, citing further upside potential. The upgrade helped push Cloudflare to a new 12-month high. Cloudflare Reaches New 12-Month High Following Analyst Upgrade
• Positive Sentiment: Cloudflare launched Basin, a data platform designed for serverless analytics and AI workloads. Its use of open formats and lack of cross-cloud transfer fees could improve data-management economics and create a potential new growth driver. Cloudflare's Data Platform Expands: Is Basin the Next Growth Driver?
• Positive Sentiment: AI-driven internet traffic remains a key bullish theme. Commentary highlighted Cloudflare’s positioning as AI agents increase web traffic, while company data indicated it was the fastest provider across 74% of the top 1,000 networks. Why Cloudflare Stock Is Trading Up
• Neutral Sentiment: Analysts’ average brokerage recommendation is equivalent to Buy, but the article cautions that consistently optimistic ratings may be less useful when evaluating a richly valued growth stock. Brokers Suggest Investing in Cloudflare
• Negative Sentiment: Valuation is the main concern. Jim Cramer said Cloudflare could benefit from rising AI traffic but expressed reservations about buying at its current valuation. The stock had also risen about 28% over the prior month, increasing the risk of profit-taking. Jim Cramer Loves Cloudflare, but There’s a Catch

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NET. CX Institutional grew its stake in Cloudflare by 49.4% in the 2nd quarter. CX Institutional now owns 133 shares of the company's stock valued at $33,000 after acquiring an additional 44 shares during the period. Wealth Architects LLC raised its position in Cloudflare by 4.6% during the second quarter. Wealth Architects LLC now owns 1,022 shares of the company's stock worth $251,000 after acquiring an additional 45 shares during the period. Cornerstone Financial Management LLC lifted its holdings in Cloudflare by 65.3% during the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company's stock valued at $29,000 after purchasing an additional 47 shares in the last quarter. Forum Financial Management LP grew its position in shares of Cloudflare by 3.5% in the second quarter. Forum Financial Management LP now owns 1,498 shares of the company's stock valued at $367,000 after purchasing an additional 50 shares during the period. Finally, Quadrant Private Wealth Management LLC grew its position in shares of Cloudflare by 3.2% in the first quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company's stock valued at $341,000 after purchasing an additional 51 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

About Cloudflare

Cloudflare, Inc is a connectivity cloud company that provides services designed to help organizations make their websites, applications and networks more secure, reliable and faster. Its global network sits between users and the services they access, supporting content delivery, domain name system services, traffic optimization and protection against distributed denial-of-service attacks and other online threats.

The company offers a range of application and network security products, including web application firewalls, bot management, application programming interface protection, zero-trust security and secure access services.

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