Cloudflare CEO Sells Over $6 Million in Stock Shares

Cloudflare, Inc. (NYSE:NET - Get Free Report) saw its CEO, Matthew Prince, sell 52,384 shares of the company’s stock on March 17th. This transaction was conducted at an average price of $116.47, amounting to a total sale value of $6,101,164.48. After this sale, Prince continues to hold 413,413 shares, which are valued at around $48,150,212.11. This sale reduces his ownership by 11.25%. Details of the transaction were disclosed in a filing with the Securities and Exchange Commission, which can be viewed on their official site.

In addition to this recent transaction, Matthew Prince has a history of selling shares over the past months:

• On March 19th, he sold another 52,384 shares at an average price of $117.32, totaling $6,145,690.88.
• On February 27th, he sold 52,384 shares for an average price of $145.04, amounting to $7,597,775.36.
• On February 25th, another sale of 52,384 shares occurred at an average price of $143.39, totaling $7,511,341.76.
• Earlier on January 8th, he sold shares at an average price of $113.73, bringing in $5,957,632.32.
• On January 6th, another 52,384 shares were sold at an average price of $113.98, for a total of $5,970,728.32.
• On December 20th, he sold the same number of shares at an average price of $111.90, accumulating $5,861,769.60.

Current Stock Performance

On Thursday, Cloudflare's stock (NET) increased by 0.3%, trading at $117.89. The trading volume was 2,460,284 shares, compared to an average volume of 3,014,035. In the last year, Cloudflare reached a low of $66.24 and a high of $177.37, with a market capitalization of approximately $40.68 billion. The company has a price-to-earnings ratio of -535.85 and a beta of 1.27. Its 50-day moving average stands at $136.54, while the 200-day moving average is $109.42. Moreover, Cloudflare has a debt-to-equity ratio of 1.32, and both its current and quick ratios are at 3.37.

Cloudflare last released its earnings report on February 6th, revealing a loss of ($0.03) per share for the quarter, which missed the consensus estimate of $0.18 by ($0.21). The company's return on equity was negative at 5.52%, and it demonstrated a negative net margin of 4.72%. Analysts predict an average loss of -0.11 earnings per share for the current fiscal year.

Changes in Analyst Ratings

Recent commentary from equities research analysts has indicated several changes regarding Cloudflare’s stock. For instance, JPMorgan Chase & Co. raised their price target from $110.00 to $115.00, giving it a "neutral" rating. Robert W. Baird maintained a "neutral" rating but increased their target from $125.00 to $140.00. Needham & Company LLC reduced their target from $185.00 to $145.00 while keeping a "buy" rating. Truist Financial also raised its price target from $120.00 to $140.00, giving it a "buy" rating. Cantor Fitzgerald upped its target from $111.00 to $149.00 while maintaining a "neutral" rating. Currently, four analysts rate the stock as a sell, eleven as a hold, and twelve as a buy, leading to a consensus rating of "Hold" with an average target price of $131.64.

Latest Stock Analysis

Institutional Involvement in Cloudflare

Several hedge funds and institutional investors have adjusted their positions in Cloudflare. Gordian Capital Singapore Pte Ltd started a new stake valued at about $43,000. Quarry LP raised its shareholding by 38.6%, now owning 478 shares valued at $39,000 after acquiring an additional 133 shares. Park Square Financial Group LLC also opened a new position valued at $56,000. Larson Financial Group LLC significantly increased their stake by 1,988.5%, now owning 543 shares worth $58,000. Finally, Versant Capital Management Inc increased its holdings by 44.9%, currently having 549 shares valued at $59,000. Notably, 82.68% of Cloudflare’s stock is controlled by institutional investors and hedge funds.

About Cloudflare

Cloudflare, Inc. is a prominent cloud services provider, offering a wide array of solutions to businesses globally. They specialize in integrated cloud-based security solutions suitable for various platforms such as public clouds, private clouds, on-premises setups, software-as-a-service applications, and IoT devices. Their security products include web application firewalls, bot management, protection against distributed denial-of-service attacks, API gateways, SSL/TLS encryption, and more.

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Should You Invest in Cloudflare Today?

Before making any investment decisions related to Cloudflare, it's advisable to review the latest trading insights. Current ratings indicate that while Cloudflare holds a "Hold" status, leading analysts are suggesting alternative stocks that may present better opportunities for investment.

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