Thomas Seifert Sells 55,000 Shares of Cloudflare (NYSE:NET) Stock

Key Points

• Cloudflare CFO Thomas Seifert sold 55,000 shares for approximately $16.5 million under a pre-arranged Rule 10b5-1 plan, reducing his direct ownership by 32.58% to 113,790 shares.
• Cloudflare reported quarterly adjusted EPS of $0.29 and revenue of $696.1 million, beating analyst estimates, while revenue increased 35.9% year over year. Management also issued stronger-than-expected full-year 2026 guidance.
• NET shares fell 3.3% to $283.33 amid a high valuation, negative net margin and ongoing insider selling, although analysts maintain a consensus “Moderate Buy” rating and the company cited strong AI-related demand.

Cloudflare, Inc. (NYSE:NET - Get Free Report) CFO Thomas Seifert sold 55,000 shares of the business's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $300.30, for a total value of $16,516,500.00. Following the sale, the chief financial officer directly owned 113,790 shares of the company's stock, valued at $34,171,137. This represents a 32.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Cloudflare Stock Down 3.3%

Cloudflare stock traded down $9.63 during midday trading on Thursday, hitting $283.33. 5,482,078 shares of the stock were exchanged, compared to its average volume of 3,075,594. The stock has a market capitalization of $100.15 billion, a price-to-earnings ratio of -1,133.31, a price-to-earnings-growth ratio of 219.10 and a beta of 1.65. The company has a quick ratio of 1.96, a current ratio of 1.96 and a debt-to-equity ratio of 1.29. The business's 50-day moving average price is $255.83 and its 200-day moving average price is $218.26. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $305.00.

Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.02. The company had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm's revenue for the quarter was up 35.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. On average, research analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat second-quarter expectations. The company reported adjusted EPS of $0.29 versus the $0.27 consensus and revenue of $696.06 million versus estimates of approximately $664.7 million. Revenue increased 35.9% year over year, reinforcing demand for Cloudflare’s connectivity, security and developer products. Cloudflare Q2 earnings report
• Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 EPS guidance increased to $1.25-$1.26, compared with consensus of $0.96, while revenue guidance was set at approximately $2.9 billion versus expectations of $2.8 billion. Third-quarter guidance also exceeded estimates, with EPS of $0.34 and revenue of $736-$737 million. Cloudflare raises annual outlook
• Positive Sentiment: AI demand is becoming a major growth driver. Cloudflare cited rising AI-agent traffic across its network and launched tools including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS. These offerings could expand its enterprise security, AI infrastructure and developer-platform markets. Cloudflare AEO Visibility Dashboard
• Neutral Sentiment: Analyst reaction is mixed. Jefferies maintained a Hold rating, while broader coverage remains generally favorable. The stock’s high beta and sharp recent rally may be contributing to profit-taking even after the earnings beat.
• Negative Sentiment: Insider selling may weigh on sentiment. CEO Matthew Prince sold more than $45 million of shares across multiple transactions, and director Carl Ledbetter sold 5,000 shares for about $1.4 million. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a signal about business prospects, but they can still pressure investor sentiment. SEC insider filing
• Negative Sentiment: Valuation remains a key risk. With Cloudflare valued at roughly $100 billion and still reporting a negative net margin, investors may demand continued acceleration in growth, profitability and cash flow. Any guidance or AI-demand disappointment could trigger further volatility.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on NET shares. Truist Financial boosted their price objective on Cloudflare from $250.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, July 21st. UBS Group raised their price objective on Cloudflare from $220.00 to $250.00 and gave the company a "neutral" rating in a research note on Wednesday, June 10th. Morgan Stanley lifted their target price on shares of Cloudflare from $305.00 to $322.00 and gave the stock an "overweight" rating in a research note on Friday, July 17th. Mizuho upped their price target on Cloudflare from $260.00 to $310.00 and gave the company an "outperform" rating in a research report on Wednesday, July 15th. Finally, Barclays increased their price objective on Cloudflare from $250.00 to $300.00 and gave the stock an "overweight" rating in a report on Monday, July 13th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $265.27.

Institutional Trading of Cloudflare

Several large investors have recently bought and sold shares of the company. HM Payson & Co. purchased a new position in shares of Cloudflare in the 4th quarter valued at approximately $25,000. Wiser Advisor Group LLC purchased a new stake in Cloudflare in the third quarter worth $26,000. Wexford Capital LP bought a new position in Cloudflare in the third quarter worth $30,000. CX Institutional raised its holdings in Cloudflare by 49.4% in the second quarter. CX Institutional now owns 133 shares of the company's stock worth $33,000 after purchasing an additional 44 shares in the last quarter. Finally, Cape Investment Advisory Inc. purchased a new position in Cloudflare during the second quarter valued at $33,000. 82.68% of the stock is owned by institutional investors.

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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