Insider Selling: Cloudflare (NYSE:NET) Director Sells 9,991 Shares of Stock

Key Points

• Carl Ledbetter, a Cloudflare director, sold 9,991 shares on April 28 at an average price of $215.85 (≈$2.16M) under a pre-arranged Rule 10b5-1 plan, leaving him with 928,082 shares (a 1.07% decrease); he had also sold 15,000 shares on March 18.
• Cloudflare beat quarterly EPS and revenue estimates with revenue up 33.6% year-over-year, but the company still shows a negative net margin and ROE; analysts have a consensus rating of Moderate Buy with an average target of $232.62 while the stock trades around $205.

Cloudflare, Inc. (NYSE:NET - Get Free Report) Director Carl Ledbetter sold 9,991 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $215.85, for a total value of $2,156,557.35. Following the completion of the sale, the director owned 928,082 shares of the company's stock, valued at $200,326,499.70. This represents a 1.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carl Ledbetter also recently made the following trade(s):

• On Wednesday, March 18th, Carl Ledbetter sold 15,000 shares of Cloudflare stock. The stock was sold at an average price of $227.05, for a total value of $3,405,750.00.

Cloudflare Stock Performance

Shares of NET stock traded down $6.71 during mid-day trading on Thursday, reaching $205.27. The stock had a trading volume of 3,052,412 shares, compared to its average volume of 4,558,477. The firm's 50 day simple moving average is $199.64 and its 200 day simple moving average is $200.29. 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, Inc. has a one year low of $120.46 and a one year high of $260.00. The firm has a market cap of $72.25 billion, a PE ratio of -707.79 and a beta of 1.87.

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

Hedge Funds Weigh In On Cloudflare

Several institutional investors have recently bought and sold shares of NET. Empowered Funds LLC raised its position in Cloudflare by 34.2% in the 1st quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock valued at $750,000 after purchasing an additional 1,696 shares during the last quarter. Sivia Capital Partners LLC bought a new position in Cloudflare in the 2nd quarter valued at $424,000. Cerity Partners LLC raised its position in Cloudflare by 30.1% in the 2nd quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock valued at $5,391,000 after purchasing an additional 6,363 shares during the last quarter. Sei Investments Co. raised its position in Cloudflare by 40.1% in the 2nd quarter. Sei Investments Co. now owns 329,036 shares of the company's stock valued at $64,432,000 after purchasing an additional 94,112 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its position in Cloudflare by 14.6% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock valued at $3,224,000 after purchasing an additional 2,093 shares during the last quarter. Institutional investors own 82.68% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently commented on NET. Wolfe Research restated a "peer perform" rating on shares of Cloudflare in a research note on Monday, January 26th. Mizuho cut their price target on shares of Cloudflare from $255.00 to $235.00 and set an "outperform" rating for the company in a report on Tuesday, April 14th. Truist Financial set a $225.00 price target on shares of Cloudflare in a research report on Tuesday, January 20th. Barclays upped their price objective on shares of Cloudflare from $235.00 to $250.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 11th. Finally, Jefferies Financial Group began coverage on shares of Cloudflare in a report on Wednesday, April 15th. They set a "buy" rating for the company. 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 assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $232.62.

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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