Insider Selling: Cloudflare, Inc. (NYSE:NET) Insider Sells 25,640 Shares of Stock

On March 27th, Michelle Zatlyn, an insider at Cloudflare, Inc. (NYSE:NET), sold 25,640 shares of the company's stock in a significant transaction. The shares were sold for an average price of $117.34 each, leading to a total transaction value of approximately $3,008,597.60. After this sale, Zatlyn retains ownership of 413,413 shares in Cloudflare, which are currently valued around $48,509,881.42. This recent sale marks a 5.84% decline in Zatlyn's overall stock position.

The details of this sale have been officially disclosed in a filing with the Securities and Exchange Commission (SEC), which interested parties can access through the SEC’s website.

Recent Insider Trades by Michelle Zatlyn

Michelle Zatlyn has made several notable trades regarding Cloudflare stocks recently:

• On March 25th, she sold another 25,640 shares at an average price of $130.85, totaling $3,354,994.00.
• On February 21st, Zatlyn sold 25,640 shares at an average price of $156.67, which amounted to $4,017,018.80.
• Earlier, on February 19th, she sold 35,099 shares at $164.84 each for a total of $5,785,719.16.
• On January 24th, she completed another sale of 25,640 shares at an average price of $123.75, generating a transaction of $3,172,950.00.
• Lastly, on January 22nd, she sold shares for an average price of $120.40, bringing the total value of that sale to $3,087,056.00.

Cloudflare Stock Analysis

On the trading day following the insider sale, Cloudflare's stock price experienced a decrease of $2.53, closing at $118.62. During this time, 2,272,713 shares exchanged hands, which is less than its average trading volume of 3,037,333. Cloudflare’s financial health shows a debt-to-equity ratio of 1.32, while the current and quick ratios stand at 3.37, indicating a solid liquidity position. The company’s 50-day moving average is $137.52, and its 200-day moving average equals $111.05. The stock's performance over the past year reveals a low of $66.24 and a high of $177.37. The company has a market capitalization of approximately $40.93 billion, while it currently reports a PE ratio of -539.17 and a beta of 1.27.

Quarterly Performance Overview

Cloudflare reported its quarterly earnings on February 6th, revealing a loss of $0.03 earnings per share (EPS). This result fell short of analysts’ expectations, which had anticipated a profit of $0.18 per share by a margin of $0.21. Furthermore, the company has reported a negative net margin of 4.72% and a negative return on equity of 5.52%. Expectations indicate that Cloudflare may post an EPS of -0.11 for the current fiscal year.

Analyst Ratings and Future Projections

Research analysts have been evaluating Cloudflare stock, with several institutions providing ratings and recommendations. DZ Bank downgraded the stock from a "hold" to a "sell" rating, setting a target price of $145.00. UBS Group also lowered their price target from $165.00 to $135.00, marking a "neutral" stance on the stock. Conversely, JPMorgan Chase & Co. raised their price target from $110.00 to $115.00 while maintaining a "neutral" rating. Royal Bank of Canada adjusted their price objective from $170.00 to $148.00 with an "outperform" rating. Additionally, Morgan Stanley initiated coverage on Cloudflare with an "overweight" rating. Presently, the stock has a consensus rating of "Hold" with an average price target of $135.64, according to MarketBeat data.

Institutional Investment Trends

Recent reports indicate that institutional investors have adjusted their stakes in Cloudflare. Gordian Capital Singapore Pte Ltd acquired a new position valued at about $43,000 during the fourth quarter. Quarry LP increased their shareholding by 38.6% in the preceding quarter and now owns 478 shares worth approximately $39,000. Park Square Financial Group established a new stake valued at about $56,000, while Larson Financial Group boosted its position dramatically by 1,988.5% in the same quarter, bringing their total holdings to 543 shares valued at $58,000. Furthermore, Versant Capital Management increased their interest by 44.9%, now holding 549 shares worth $59,000. Overall, institutional investors control around 82.68% of Cloudflare’s stock.

Company Overview

Cloudflare, Inc. operates as a prominent cloud services provider delivering a variety of solutions to businesses globally. The company focuses on enhancing security through its integrated cloud-based solutions, which protect various platforms including public and private clouds, on-premise setups, software-as-a-service applications, and IoT devices. Their product lineup includes web application firewalls, bot management, DDoS mitigation, API gateways, SSL/TLS encryption, and more.

Cloudflare, Insider, Trading, Earnings, Stocks