Cloudflare CFO Thomas J. Seifert Sells 31,136 Shares

Cloudflare, Inc. (NYSE:NET) recently witnessed a significant transaction as its Chief Financial Officer, Thomas J. Seifert, sold 31,136 shares of the company’s stock on Tuesday, January 21st. The shares were sold at an average price of $120.10, resulting in a total transaction value of approximately $3,739,433.60. After this transaction, Seifert now holds 252,869 shares in the company, which are valued at around $30,369,566.90. This sale marks a 10.96% reduction in his overall stake in Cloudflare. Details of this transaction have been made available in a filing with the Securities and Exchange Commission (SEC), which can be reviewed for more information.

Cloudflare Stock Performance

On the day of the trade, Cloudflare's stock experienced a rise of 2.3%, increasing by $2.65 and reaching a trading price of $119.81. The trading volume for the shares stood at 2,699,364, slightly below the average volume of 2,762,995. Currently, Cloudflare has a market capitalization of approximately $41.12 billion and a price-to-earnings ratio of -460.81. The company also maintains a beta of 1.10, indicating its relative volatility compared to the overall market. Cloudflare's financial stability is reinforced by a debt-to-equity ratio of 1.32, a quick ratio of 3.37, and a current ratio of 3.37. Over the past year, the stock has seen a low of $66.24 and a high of $121.02, with a fifty-day moving average at $108.20 and a 200-day moving average of $91.77.

Recent Financial Results

Cloudflare last reported its quarterly earnings on November 7th, where it announced earnings per share of ($0.03), aligning with analysts' consensus expectations. The company’s revenue for the quarter reached $430.08 million, surpassing analysts' projections of $423.65 million. However, Cloudflare reported a negative net margin of 5.97% and a negative return on equity of 7.18%. For the current year, research analysts predict the company will report an EPS of -0.1.

Analysts' Views on Cloudflare Stock

Several analysts have offered varying perspectives on Cloudflare's stock performance. Piper Sandler raised their price target for Cloudflare from $83.00 to $92.00 and maintained a "neutral" rating. Mizuho increased their price target from $102.00 to $125.00 while also giving a "neutral" rating. UBS Group lifted its price objective from $88.00 to $95.00, maintaining a neutral stance. In a more optimistic view, the Goldman Sachs Group upgraded Cloudflare from "sell" to "buy," setting a new target price of $140.00. Jefferies Financial Group also increased its price target for Cloudflare to $125.00 and maintained a "hold" rating. Overall, three investment analysts rated the stock as a sell, nine as hold, and fourteen analysts gave it a buy rating. According to MarketBeat data, the stock currently holds an average rating of "Hold" with an average price target of $108.32.

Institutional Holdings in Cloudflare

Recent movements among institutional investors show an increase in holdings for Cloudflare. Geode Capital Management LLC expanded its stake by 2.6%, owning 4,834,558 shares valued at $390.13 million after purchasing an additional 121,810 shares. Marshall Wace LLP raised its stake by 123.4% in the second quarter, acquiring an additional 855,334 shares to reach a total of 1,548,535 shares worth $128.27 million. Similarly, Charles Schwab Investment Management increased its position by 2.7%, holding a total of 1,157,815 shares. These activities reflect the growing interest in Cloudflare, with hedge funds and institutional investors owning approximately 82.68% of the company’s stock.

About Cloudflare, Inc.

As a leading cloud services provider, Cloudflare delivers a diverse range of integrated cloud-based security solutions for businesses globally. The company specializes in securing various platforms including public and private clouds, on-premise solutions, software-as-a-service applications, and IoT devices. Its product line includes web application firewalls, bot management tools, distributed denial-of-service protection, API gateways, SSL/TLS encryption, script management, and security rate limiting.

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