Insider Selling: Cloudflare (NYSE:NET) Director Sells 15,000 Shares of Stock

Cloudflare, Inc. (NYSE:NET) Director Carl Ledbetter sold 15,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $238.12, for a total value of $3,571,800.00. Following the completion of the transaction, the director owned 908,073 shares in the company, valued at $216,230,342.76. This represents a 1.63% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Friday, May 1st, Carl Ledbetter sold 5,009 shares of Cloudflare stock. The shares were sold at an average price of $215.82, for a total value of $1,081,042.38.
• On Tuesday, April 28th, Carl Ledbetter sold 9,991 shares of Cloudflare stock. The stock was sold at an average price of $215.85, for a total transaction of $2,156,557.35.
• On Wednesday, March 18th, Carl Ledbetter sold 15,000 shares of Cloudflare stock. The shares were sold at an average price of $227.05, for a total transaction of $3,405,750.00.

Cloudflare Stock Up 9.0%

Shares of NET traded up $20.29 during trading hours on Tuesday, reaching $244.46. 7,166,977 shares of the stock traded hands, compared to its average volume of 4,549,866. Cloudflare, Inc. has a 52 week low of $120.46 and a 52 week high of $260.00. The company has a market cap of $86.04 billion, a price-to-earnings ratio of -842.92 and a beta of 1.67. The stock has a fifty day simple moving average of $199.89 and a 200 day simple moving average of $200.05. The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 1.35.

Cloudflare (NYSE:NET) last issued its quarterly earnings data 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 the consensus estimate of $591.67 million. Cloudflare had a negative net margin of 4.72% and a negative return on equity of 7.24%. The firm’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, equities analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current year.

Institutional Investors Weigh In On Cloudflare

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NET. Allianz Asset Management GmbH grew its position in shares of Cloudflare by 322.4% in the third quarter. Allianz Asset Management GmbH now owns 65,182 shares of the company’s stock valued at $13,987,000 after purchasing an additional 49,749 shares in the last quarter. Rakuten Investment Management Inc. bought a new position in Cloudflare in the 3rd quarter worth about $138,660,000. National Pension Service boosted its stake in Cloudflare by 1.0% in the 3rd quarter. National Pension Service now owns 618,662 shares of the company’s stock worth $132,759,000 after purchasing an additional 5,939 shares during the period. Massachusetts Financial Services Co. MA grew its holdings in Cloudflare by 25.8% during the 4th quarter. Massachusetts Financial Services Co. MA now owns 1,639,661 shares of the company’s stock valued at $323,259,000 after buying an additional 336,768 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH increased its position in shares of Cloudflare by 20.1% during the third quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 170,186 shares of the company’s stock valued at $36,520,000 after buying an additional 28,495 shares during the period. 82.68% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on NET shares. Needham & Company LLC dropped their price target on Cloudflare from $285.00 to $250.00 and set a “buy” rating on the stock in a report on Wednesday, February 11th. Piper Sandler upgraded Cloudflare from a “neutral” rating to an “overweight” rating and set a $222.00 price objective for the company in a research note on Tuesday, April 14th. Susquehanna set a $190.00 target price on Cloudflare in a research note on Thursday, February 12th. Weiss Ratings reissued a “sell (d-)” rating on shares of Cloudflare in a report on Monday, April 20th. Finally, Barclays increased their price target on shares of Cloudflare from $235.00 to $250.00 and gave the company an “overweight” rating in a research report on Wednesday, February 11th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $232.62.

Trending Headlines about Cloudflare

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

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.