Insider Selling: Cloudflare (NYSE:NET) CFO Sells 10,000 Shares of Stock

Key Points

• Cloudflare CFO Thomas Seifert sold 10,000 shares on May 18 at an average price of $200.61, for proceeds of about $2.01 million. The sale was part of a pre-arranged Rule 10b5-1 plan, and his remaining stake was valued at roughly $42.5 million.
• Cloudflare’s stock was trading higher around $206.81 in midday trading, near its 50-day moving average and above its 200-day average. The company has a market cap of about $73.1 billion and remains volatile, with a beta of 1.67.
• Recent fundamentals and sentiment remain mixed but generally positive: Cloudflare beat Q1 earnings and revenue estimates, with revenue up 33.5% year over year, while new AI-related partnerships and a pivot toward AI products are supporting investor interest. At the same time, insider selling and ongoing losses keep some pressure on the name.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CFO Thomas Seifert sold 10,000 shares of the firm's stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $200.61, for a total transaction of $2,006,100.00. Following the completion of the sale, the chief financial officer owned 212,014 shares of the company's stock, valued at approximately $42,532,128.54. The trade was a 4.50% decrease in their position. The sale 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.

Cloudflare Stock Performance

NYSE:NET traded up $5.06 during mid-day trading on Tuesday, reaching $206.81. The stock had a trading volume of 3,574,344 shares, 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. Cloudflare, Inc. has a twelve month low of $154.93 and a twelve month high of $260.00. The business has a 50 day simple moving average of $207.12 and a 200 day simple moving average of $199.76.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating analysts' consensus estimates of $0.23 by $0.02. The firm had revenue of $639.76 million during the quarter, compared to the consensus estimate 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 revenue was up 33.5% compared to the same quarter last year. During the same quarter last year, the firm earned $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. On average, analysts expect that Cloudflare, Inc. will post -0.09 earnings per share for the current fiscal year.

Key Cloudflare News

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.

Institutional Investors Weigh In On Cloudflare

A number of hedge funds and other institutional investors have recently modified their holdings of NET. Norges Bank acquired a new stake in shares of Cloudflare during the 4th quarter valued at approximately $718,316,000. Jennison Associates LLC raised its position in shares of Cloudflare by 135.8% during the 1st quarter. Jennison Associates LLC now owns 4,394,484 shares of the company's stock worth $906,758,000 after purchasing an additional 2,530,872 shares during the last quarter. Corient Private Wealth LLC raised its position in shares of Cloudflare by 4,042.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,399,378 shares of the company's stock worth $275,887,000 after purchasing an additional 1,365,598 shares during the last quarter. Groupama Asset Managment raised its position in shares of Cloudflare by 82.6% during the 3rd quarter. Groupama Asset Managment now owns 2,100,000 shares of the company's stock worth $450,639,000 after purchasing an additional 950,000 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in shares of Cloudflare by 2.6% during the 3rd quarter. Vanguard Group Inc. now owns 32,317,249 shares of the company's stock worth $6,934,958,000 after purchasing an additional 821,684 shares during the last quarter. 82.68% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NET. Wolfe Research reiterated a "peer perform" rating on shares of Cloudflare in a report on Monday, January 26th. Robert W. Baird set a $260.00 price target on shares of Cloudflare and gave the company an "outperform" rating in a report on Wednesday, February 11th. Wells Fargo & Company increased their price target on shares of Cloudflare from $265.00 to $270.00 and gave the company an "overweight" rating in a report on Wednesday, February 11th. Zacks Research upgraded shares of Cloudflare from a "strong sell" rating to a "hold" rating in a research report on Friday, March 13th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Cloudflare in a research report on Monday, April 20th. Eighteen investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $236.68.

Cloudflare Company Profile

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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