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

Key Points

• Cloudflare CEO Matthew Prince sold 52,384 shares on May 19 at an average price of $204.15, generating about $10.7 million. The sale was disclosed in an SEC filing and was made under a pre-arranged Rule 10b5-1 trading plan.
• After the transaction, Prince directly owned 25,550 shares, a 67.22% decrease in his position. The article also notes he has made multiple similar stock sales in recent months.
• Cloudflare shares were trading up about 1.1% to $212.47, while the company recently reported better-than-expected quarterly results with EPS of $0.25 and revenue of $639.76 million, up 33.5% year over year.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CEO Matthew Prince sold 52,384 shares of Cloudflare stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $204.15, for a total transaction of $10,694,193.60. Following the sale, the chief executive officer directly owned 25,550 shares in the company, valued at $5,216,032.50. This trade represents a 67.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Thursday, May 21st, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $210.66, for a total transaction of $11,035,213.44.
• On Wednesday, April 8th, Matthew Prince sold 51,725 shares of Cloudflare stock. The stock was sold at an average price of $213.59, for a total transaction of $11,047,942.75.
• On Monday, April 6th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $210.02, for a total transaction of $11,001,687.68.
• On Wednesday, April 8th, Matthew Prince sold 659 shares of Cloudflare stock. The stock was sold at an average price of $223.62, for a total value of $147,365.58.
• On Wednesday, March 18th, Matthew Prince sold 38,766 shares of Cloudflare stock. The stock was sold at an average price of $218.87, for a total value of $8,484,714.42.
• On Monday, March 16th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $209.08, for a total value of $10,952,446.72.
• On Wednesday, March 18th, Matthew Prince sold 13,618 shares of Cloudflare stock. The stock was sold at an average price of $227.80, for a total value of $3,102,180.40.
• On Thursday, February 26th, Matthew Prince sold 52,384 shares of Cloudflare stock. The shares were sold at an average price of $173.78, for a total value of $9,103,291.52.
• On Tuesday, February 24th, Matthew Prince sold 52,384 shares of Cloudflare stock. The stock was sold at an average price of $164.15, for a total value of $8,598,833.60.

Cloudflare Trading Up 1.1%

NYSE NET traded up $2.34 on Thursday, hitting $212.47. 2,791,087 shares of the company were exchanged, compared to its average volume of 4,700,855. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. Cloudflare, Inc. has a twelve month low of $154.93 and a twelve month high of $260.00. The firm has a market capitalization of $75.10 billion, a P/E ratio of -849.88 and a beta of 1.67. The company's 50 day moving average price is $207.53 and its 200-day moving average price is $199.52.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.02. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm had revenue of $639.76 million during the quarter, compared to the consensus estimate of $620.83 million. During the same period in the prior year, the business earned $0.16 EPS. The business's revenue for the quarter was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.

Hedge Funds Weigh In On Cloudflare

Several hedge funds have recently bought and sold shares of the company. Essential Partners LLC raised its position in shares of Cloudflare by 14.5% in the 1st quarter. Essential Partners LLC now owns 402 shares of the company's stock valued at $83,000 after buying an additional 51 shares in the last quarter. Janus Henderson Group PLC boosted its position in shares of Cloudflare by 583.1% during the 1st quarter. Janus Henderson Group PLC now owns 241,367 shares of the company's stock worth $49,805,000 after acquiring an additional 206,032 shares in the last quarter. Centaurus Financial Inc. increased its stake in Cloudflare by 4.8% in the first quarter. Centaurus Financial Inc. now owns 1,780 shares of the company's stock valued at $367,000 after acquiring an additional 82 shares during the last quarter. Bull Harbor Capital LLC bought a new stake in shares of Cloudflare during the first quarter worth $417,000. Finally, Altshuler Shaham Ltd grew its holdings in Cloudflare by 136.7% during the 1st quarter. Altshuler Shaham Ltd now owns 8,690 shares of the company's stock worth $1,793,000 after acquiring an additional 5,019 shares during the last quarter. 82.68% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research analysts have issued reports on NET shares. Citigroup began coverage on Cloudflare in a report on Wednesday, April 15th. They set a "buy" rating for the company. Stifel Nicolaus set a $260.00 target price on Cloudflare in a report on Friday, May 8th. Zacks Research raised shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research note on Friday, March 13th. Susquehanna boosted their target price on shares of Cloudflare from $190.00 to $200.00 and gave the stock a "neutral" rating in a report on Monday, May 11th. Finally, The Goldman Sachs Group cut shares of Cloudflare from a "buy" rating to a "sell" rating in a research note on Wednesday, April 15th. Eighteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, Cloudflare 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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