Cloudflare executive sells over $12.8 million in company stock By Investing.com

SAN FRANCISCO, CA – Cloudflare, Inc. (NYSE:) reported that its President and COO, Michelle Zatlyn, has sold a significant amount of company stock, amounting to over $12.8 million, according to a recent filing with the Securities and Exchange Commission.

The transactions, which took place between July 1 and July 3, 2024, involved the sale of shares at varying prices. On July 1, Zatlyn disposed of 37,863 shares at an average price of $81.656, and another set of 19,418 shares at an average price of $82.7713. The sales continued with 24,783 shares at an average price of $83.6305, and 9,486 shares at an average price of $81.6561. Additionally, 4,860 shares were sold at an average price of $82.7801, and 6,170 shares at $83.6306.

On July 2, the sales included 14,227 shares at an average price of $84.3187, and 6,285 shares at an average price of $84.8838. The following day, Zatlyn sold 20,512 shares at an average price of $85.2789, and another 5,128 shares at the same average price.

These sales were part of a pre-arranged Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information. Such plans are used by corporate executives to avoid accusations of insider trading.

The transactions have been disclosed in line with the SEC’s requirements, providing transparency into the actions of Cloudflare’s executives. The footnotes in the filing indicate that the shares sold were held in various trusts associated with Zatlyn, including The Sutherland/Zatlyn Revocable Trust and The SZ 2021 Irrevocable Trust, among others.

As of the latest filing, Zatlyn’s holdings in non-derivative securities have been adjusted to reflect these sales. The executive’s remaining stakes and future transactions will continue to be monitored by investors as an indicator of confidence in the company’s performance and prospects.

For more information on the specifics of the transactions, including the exact number of shares sold at each price point, the filing suggests that Zatlyn is willing to provide full information upon request to the relevant parties.

Cloudflare, known for its services in web infrastructure and website security, remains a closely watched company in the tech sector. Transactions of this magnitude by top executives often attract attention from investors seeking insights into the company’s internal perspective.

In other recent news, Cloudflare has seen a variety of analyst ratings and price target adjustments. UBS recently upgraded its rating for the company to Neutral from Sell, raising its price target to $82.00 from the previous $76.00. The firm’s decision was influenced by Cloudflare’s disruptive research and development capabilities and significant total addressable market. In contrast, Goldman Sachs maintained a Sell rating on Cloudflare with a $68.00 target, despite acknowledging the company’s potential for growth and strategic initiatives.

Meanwhile, Citi maintained its Neutral stance on Cloudflare, keeping its price target at $90.00, as it awaits further evidence of the company’s execution of strategies to enhance its enterprise credibility. TD Cowen reiterated a Buy rating and a $110.00 target for Cloudflare, expressing optimism about short-term demand trends and the potential for upward adjustment of revenue guidance. However, RBC Capital reduced its price target to $90.00 from $108.00, while maintaining an Outperform rating, acknowledging Cloudflare’s solid market stance.

These recent developments reflect the varying perspectives of financial firms on Cloudflare’s performance and future prospects. It’s important to note that these ratings and price targets are based on the firms’ analysis and should not be taken as investment advice.

InvestingPro Insights

As Cloudflare’s President and COO, Michelle Zatlyn, makes significant moves in the stock market, investors are keen to understand the broader financial context of the company. Cloudflare, Inc. (NYSE:NET) demonstrates its potential through a series of positive indicators. According to InvestingPro data, the company has a market capitalization of $28.85 billion, reflecting its substantial presence in the tech sector. This is coupled with a notable gross profit margin of 76.78% for the last twelve months as of Q1 2024, indicating efficient operations and a strong ability to retain earnings from sales.

Investors are also watching the company’s stock performance closely, which has seen a substantial 25.36% return over the last month. This robust short-term performance could be seen as a positive signal to the market, despite the company’s high Price / Book multiple of 36.03, suggesting a premium valuation.

Adding to the confidence in Cloudflare’s prospects, two InvestingPro Tips highlight the company’s expected growth trajectory. Net income is projected to grow this year, and 15 analysts have revised their earnings estimates upwards for the upcoming period. These revisions often reflect a consensus that the company’s financial health is on a positive trend.

For those looking to dive deeper into Cloudflare’s financials and forecasts, InvestingPro offers an array of additional tips. There are 11 more InvestingPro Tips available that provide further insights into Cloudflare’s financial performance and market expectations. To explore these tips and make informed investment decisions, use the coupon code PRONEWS24 for up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at https://www.investing.com/pro/NET.

Cloudflare’s recent executive stock sales may raise questions, but the company’s solid financial metrics and positive analyst revisions provide a broader context for investors to consider. As always, staying informed with comprehensive and real-time data is key to navigating the complexities of the stock market.

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