Insider Selling: Cloudflare (NYSE:NET) CEO Sells 52,384 Shares of Stock

Key Points

• Matthew Prince, Cloudflare’s CEO, sold 52,384 shares on Feb 24 at an average price of $164.15 for about $8.6 million, leaving him with 22,911 shares—a 69.6% reduction in his position.
• Prince has repeatedly sold identical blocks of 52,384 shares across December–February at prices ranging from roughly $202 to $164, generating $8.6M–$10.6M per sale, signaling ongoing insider selling.
• Cloudflare recently beat estimates with $0.28 EPS (vs. $0.27) and revenue of $614.5M up 33.6% year‑over‑year; the stock traded at $174.59 (up 1.6%), with a consensus analyst price target around $230.70 and a "Moderate Buy" rating.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CEO Matthew Prince sold 52,384 shares of the business's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $164.15, for a total transaction of $8,598,833.60. Following the completion of the transaction, the chief executive officer owned 22,911 shares in the company, valued at approximately $3,760,840.65. The trade was a 69.57% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.

Matthew Prince also recently made the following trade(s):

• On Thursday, February 26th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $173.78, for a total value of $9,103,291.52.
• On Thursday, January 8th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $189.47, for a total value of $9,925,196.48.
• On Tuesday, January 6th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $194.77, for a total transaction of $10,202,831.68.
• On Friday, December 5th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $201.23, for a total transaction of $10,541,232.32.
• On Wednesday, December 3rd, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $202.19, for a total transaction of $10,591,520.96.

Cloudflare Stock Up 1.6%

Shares of NYSE NET traded up $2.79 during trading on Thursday, hitting $174.59. 4,094,326 shares of the company traded hands, compared to its average volume of 6,125,009. The firm has a market capitalization of $61.16 billion, a price-to-earnings ratio of -602.01 and a beta of 1.97. The business's fifty day moving average is $186.33 and its 200 day moving average is $203.14. The company has a debt-to-equity ratio of 1.46, a quick ratio of 2.04 and a current ratio of 2.04. Cloudflare, Inc. has a fifty-two week low of $89.42 and a fifty-two week high of $260.00.

Cloudflare (NYSE:NET - Get Free Report) last issued 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. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.The company had revenue of $614.51 million during the quarter, compared to the consensus estimate of $591.67 million. During the same period last year, the business posted $0.19 EPS. The firm's revenue for the quarter was up 33.6% compared to the same quarter last year. Equities research analysts predict that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Empowered Funds LLC boosted its holdings in shares of Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock worth $750,000 after acquiring an additional 1,696 shares during the period. Sivia Capital Partners LLC bought a new position in shares of Cloudflare in the second quarter valued at approximately $424,000. Focus Partners Advisor Solutions LLC purchased a new position in Cloudflare during the second quarter valued at approximately $295,000. Wealthfront Advisers LLC grew its stake in Cloudflare by 13.0% during the second quarter. Wealthfront Advisers LLC now owns 31,003 shares of the company's stock valued at $6,071,000 after acquiring an additional 3,556 shares in the last quarter. Finally, Resonant Capital Advisors LLC bought a new stake in Cloudflare during the 2nd quarter worth approximately $229,000. Hedge funds and other institutional investors own 82.68% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on NET. Mizuho dropped their price objective on shares of Cloudflare from $280.00 to $255.00 and set an "outperform" rating on the stock in a research note on Wednesday, January 21st. Cantor Fitzgerald reissued a "neutral" rating and set a $224.00 price objective on shares of Cloudflare in a report on Wednesday, February 11th. Wall Street Zen upgraded Cloudflare from a "hold" rating to a "buy" rating in a report on Saturday, November 8th. KeyCorp reaffirmed an "overweight" rating on shares of Cloudflare in a research report on Wednesday, February 11th. Finally, Citigroup upped their price target on Cloudflare from $260.00 to $265.00 and gave the stock a "buy" rating in a report on Thursday, February 12th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Cloudflare has an average rating of "Moderate Buy" and a consensus price target of $230.70.

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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