Insider Selling: Cloudflare (NYSE:NET) Director Sells 2,520 Shares of Stock

Key Points

• Director John Graham‑Cumming sold 2,520 shares on May 4 at an average price of $221.58 for about $558,382 under a pre‑arranged Rule 10b5‑1 plan, a 0.51% reduction that leaves him with 494,067 shares (~$109.5M).
• Cloudflare reported Q1 revenue of $614.51M (up 33.6%) and a slight EPS beat, its stock traded near $244.46 amid mixed analyst views but carries a consensus "Moderate Buy" and an average target of roughly $232.62.

Cloudflare, Inc. (NYSE:NET - Get Free Report) Director John Graham-Cumming sold 2,520 shares of Cloudflare stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $221.58, for a total value of $558,381.60. Following the completion of the sale, the director directly owned 494,067 shares of the company's stock, valued at approximately $109,475,365.86. This trade represents a 0.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

John Graham-Cumming also recently made the following trade(s):

• On Monday, February 9th, John Graham-Cumming sold 2,520 shares of Cloudflare stock. The stock was sold at an average price of $173.35, for a total value of $436,842.00.

Cloudflare Stock Performance

NET traded up $20.29 during trading hours on Tuesday, hitting $244.46. The stock had a trading volume of 7,166,977 shares, compared to its average volume of 4,549,866. The company's fifty day simple moving average is $199.89 and its 200 day simple moving average is $200.05. Cloudflare, Inc. has a 1 year low of $120.46 and a 1 year high of $260.00. The stock has a market cap of $86.04 billion, a PE ratio of -842.92 and a beta of 1.67. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35.

Cloudflare (NYSE:NET - Get Free Report) last announced its quarterly earnings data on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.01. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The company had revenue of $614.51 million during the quarter, compared to analyst estimates of $591.67 million. During the same quarter last year, the firm posted $0.19 EPS. The firm's revenue for the quarter was up 33.6% on a year-over-year basis. Equities analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current year.

Wall Street Analyst Weigh In

A number of research firms have weighed in on NET. Truist Financial set a $225.00 target price on Cloudflare in a report on Tuesday, January 20th. UBS Group reaffirmed a "neutral" rating and set a $220.00 target price on shares of Cloudflare in a report on Wednesday, February 11th. Mizuho reduced their target price on Cloudflare from $255.00 to $235.00 and set an "outperform" rating for the company in a report on Tuesday, April 14th. The Goldman Sachs Group lowered Cloudflare from a "buy" rating to a "sell" rating in a report on Wednesday, April 15th. Finally, Jefferies Financial Group began coverage on Cloudflare in a report on Wednesday, April 15th. They set a "buy" rating for the company. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, seven have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Cloudflare currently has a consensus rating of "Moderate Buy" and a consensus target price of $232.62.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Forrester named Cloudflare a Leader in its Edge Development Platforms report — independent validation of Cloudflare’s edge/developer strategy that supports medium-term revenue & enterprise adoption. Forrester Wave: Edge Development Platforms
• Positive Sentiment: Broker and rating upgrades/metrics jumped (composite rating upgrade and RS rating to 83), which can attract momentum buyers and technical traders ahead of earnings. Composite Rating Upgrade
• Positive Sentiment: Jim Cramer spotlighted Cloudflare as a “terrific cyber defender” on Mad Money, increasing retail visibility and short-term buying interest into the print. Jim Cramer Mention
• Positive Sentiment: Analyst consensus still implies upside (average targets ~\$230s) and coverage remains constructive overall, supporting demand from institutional buyers. Brokerage Coverage
• Neutral Sentiment: Earnings previews note strong AI and enterprise tailwinds for Q1 but flag macro pressure and possible large-deal timing delays — a mixed setup where upside from AI adoption competes with near-term execution risk. Q1 Earnings Preview
• Neutral Sentiment: Director Carl Ledbetter sold 5,009 shares under a pre-arranged Rule 10b5-1 plan — a routine liquidity event that is unlikely to signal new negative information. SEC Filing - Ledbetter
• Neutral Sentiment: Coverage is mixed across outlets (some raising targets, others trimming) — keeps headline upside intact but limits conviction for big upgrades. Analysts Conflicted
• Negative Sentiment: Seeking Alpha issued a rating downgrade to Hold citing valuation that has caught up to the growth story — a call that may weigh on value-focused funds and prompt some profit-taking. Seeking Alpha Downgrade
• Negative Sentiment: Insider sale: Director Mark Hawkins sold 133 shares (small position reduction); while immaterial in size, any insider selling can be read negatively by short-term traders. SEC Filing - Hawkins

Institutional Trading of Cloudflare

A number of large investors have recently modified their holdings of the business. Reliant Investment Partners LLC boosted its position in shares of Cloudflare by 1.5% during the 3rd quarter. Reliant Investment Partners LLC now owns 3,316 shares of the company's stock valued at $718,000 after acquiring an additional 50 shares during the last quarter. Frank Rimerman Advisors LLC boosted its position in shares of Cloudflare by 1.8% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 2,821 shares of the company's stock valued at $605,000 after acquiring an additional 51 shares during the last quarter. Jamison Private Wealth Management Inc. boosted its position in shares of Cloudflare by 2.6% during the 1st quarter. Jamison Private Wealth Management Inc. now owns 2,064 shares of the company's stock valued at $426,000 after acquiring an additional 52 shares during the last quarter. Revisor Wealth Management LLC boosted its position in shares of Cloudflare by 4.0% during the 1st quarter. Revisor Wealth Management LLC now owns 1,390 shares of the company's stock valued at $287,000 after acquiring an additional 53 shares during the last quarter. Finally, IMA Advisory Services Inc. boosted its position in shares of Cloudflare by 4.5% during the 4th quarter. IMA Advisory Services Inc. now owns 1,290 shares of the company's stock valued at $254,000 after acquiring an additional 55 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

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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