Insider Selling: Cloudflare (NYSE:NET) CAO Sells 3,333 Shares of Stock

Key Points

• Cloudflare CAO Janel Riley sold 3,333 shares on May 15 at an average price of $196.95, for proceeds of about $656,434. The sale reduced her holdings by 5.95% and was made under a pre-arranged Rule 10b5-1 plan.
• Insider selling continued with Riley also selling 3,481 shares on May 18 and 23,332 shares on March 5; CFO Thomas J. Seifert also sold 10,000 shares. The article notes these transactions were pre-planned, but they can still weigh on short-term sentiment.
• Cloudflare reported strong quarterly results, beating estimates with $0.25 EPS on $639.76 million in revenue, while revenue rose 33.5% year over year. The stock was also trading up 2.5% to $206.81, and analysts currently rate it a “Moderate Buy” with a consensus price target of $236.68.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CAO Janel Riley sold 3,333 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $196.95, for a total transaction of $656,434.35. Following the sale, the chief accounting officer owned 52,644 shares of the company's stock, valued at approximately $10,368,235.80. This represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Janel Riley also recently made the following trade(s):

• On Monday, May 18th, Janel Riley sold 3,481 shares of Cloudflare stock. The stock was sold at an average price of $193.32, for a total transaction of $672,946.92.
• On Thursday, March 5th, Janel Riley sold 23,332 shares of Cloudflare stock. The stock was sold at an average price of $190.00, for a total transaction of $4,433,080.00.

Cloudflare Stock Up 2.5%

Shares of NET stock traded up $5.06 during trading on Tuesday, hitting $206.81. 3,574,344 shares of the company were exchanged, compared to its average volume of 4,738,881. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96. The firm has a market capitalization of $73.10 billion, a price-to-earnings ratio of -827.25 and a beta of 1.67. The business's 50-day simple moving average is $207.12 and its 200 day simple moving average is $199.76. Cloudflare, Inc. has a twelve month low of $154.93 and a twelve month high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The business had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm's quarterly revenue was up 33.5% compared to the same quarter last year. During the same period last year, the company posted $0.16 earnings per share. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. As a group, analysts forecast that Cloudflare, Inc. will post -0.09 EPS for the current fiscal year.

Key Stories Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare announced a collaboration with Anthropic to launch Cloudflare Environments for Claude Managed Agents, which could strengthen its positioning in AI infrastructure and developer tooling. Cloudflare Brings Secure, Scalable Sandboxes to Claude Managed Agents
• Positive Sentiment: Recent coverage highlighted Cloudflare’s AI-first pivot and workforce reduction as part of a strategy to improve efficiency while expanding AI products, which may be viewed as a margin and growth catalyst. Cloudflare Reshapes Business With AI Pivot And 20% Workforce Cut
• Positive Sentiment: Investor interest in AI-linked internet software names and a sectorwide lift after a strong Cisco report have also helped sentiment around NET. Why Cloudflare (NET) Stock Is Trading Up Today
• Neutral Sentiment: Analyst and media commentary continues to group Cloudflare with other AI software beneficiaries, but this is more sentiment-driven than a new fundamental update. Fastly's Compute Revenues Surge: Is AI Demand Powering Growth?
• Negative Sentiment: Chief accounting officer Janel Riley sold shares in two separate transactions, and CFO Thomas J. Seifert also sold 10,000 shares, which can create some short-term pressure even though all were under pre-arranged 10b5-1 plans.

Hedge Funds Weigh In On Cloudflare

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Allianz Asset Management GmbH grew its stake in shares of Cloudflare by 322.4% in the third quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company's stock worth $13,987,000 after acquiring an additional 49,749 shares during the last quarter. Rakuten Investment Management Inc. acquired a new position in Cloudflare during the 3rd quarter valued at $138,660,000. National Pension Service boosted its holdings in Cloudflare by 1.0% in the 3rd quarter. National Pension Service now owns 618,662 shares of the company's stock valued at $132,759,000 after purchasing an additional 5,939 shares during the period. Trek Financial LLC bought a new stake in Cloudflare in the 4th quarter valued at $1,793,000. Finally, Massachusetts Financial Services Co. MA boosted its holdings in Cloudflare by 25.8% in the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company's stock valued at $323,259,000 after purchasing an additional 336,768 shares during the period. Institutional investors and hedge funds own 82.68% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on NET shares. New Street Research set a $140.00 price objective on shares of Cloudflare in a research report on Wednesday, February 11th. KeyCorp lowered shares of Cloudflare from an "overweight" rating to a "hold" rating in a research report on Wednesday, April 15th. Robert W. Baird set a $260.00 price objective on shares of Cloudflare and gave the company an "outperform" rating in a research report on Wednesday, February 11th. BTIG Research reaffirmed a "buy" rating and set a $243.00 price objective on shares of Cloudflare in a research report on Friday, May 8th. Finally, UBS Group reaffirmed a "neutral" rating and set a $220.00 price objective on shares of Cloudflare in a research report on Wednesday, February 11th. Eighteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $236.68.

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.

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