Insider Selling: Cloudflare (NYSE:NET) Director Sells 5,000 Shares

Cloudflare, Inc. (NYSE:NET) Director Carl Ledbetter sold 5,000 shares of the stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $281.98, for a total value of $1,409,900.00. Following the completion of the transaction, the director owned 883,073 shares in the company, valued at approximately $249,008,924.54. The trade was a 0.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through 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 Tuesday, July 7th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The stock was sold at an average price of $268.11, for a total value of $1,340,550.00.

Cloudflare Stock Down 3.3%

NET stock traded down $9.63 during trading on Thursday, hitting $283.33. 5,482,078 shares of the company’s stock were exchanged, compared to its average volume of 4,307,386. The business has a 50-day moving average price of $254.72 and a two-hundred day moving average price of $217.56. The company has a current ratio of 1.96, a quick ratio of 1.96 and a debt-to-equity ratio of 1.29. The stock has a market capitalization of $100.15 billion, a price-to-earnings ratio of -1,133.31, a PEG ratio of 225.36 and a beta of 1.65. Cloudflare, Inc. has a 52-week low of $158.83 and a 52-week high of $305.00.

Cloudflare (NYSE:NET) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.29 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. The company had revenue of $696.06 million for the quarter, compared to analysts’ expectations of $664.66 million. Cloudflare had a negative net margin of 3.72% and a negative return on equity of 5.65%. The firm’s revenue for the quarter was up 35.9% on a year-over-year basis. During the same quarter last year, the company earned $0.21 earnings per share. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. As a group, equities research analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current year.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently made changes to their positions in NET. HM Payson & Co. purchased a new position in shares of Cloudflare during the fourth quarter worth about $25,000. Wiser Advisor Group LLC purchased a new stake in Cloudflare during the 3rd quarter valued at approximately $26,000. Wexford Capital LP acquired a new stake in Cloudflare during the 3rd quarter worth approximately $30,000. CX Institutional lifted its position in Cloudflare by 49.4% during the 2nd quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after acquiring an additional 44 shares during the period. Finally, Cape Investment Advisory Inc. purchased a new position in shares of Cloudflare in the 2nd quarter valued at approximately $33,000. Institutional investors and hedge funds own 82.68% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have issued reports on NET. Deutsche Bank Aktiengesellschaft upgraded shares of Cloudflare to a “buy” rating in a research note on Tuesday, July 7th. Mizuho boosted their target price on Cloudflare from $260.00 to $310.00 and gave the company an “outperform” rating in a report on Wednesday, July 15th. Piper Sandler reissued an “overweight” rating on shares of Cloudflare in a research report on Wednesday, June 10th. Jefferies Financial Group restated a “hold” rating and set a $290.00 price target on shares of Cloudflare in a research note on Tuesday. Finally, Susquehanna lifted their price target on Cloudflare from $190.00 to $200.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, six have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $265.27.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q2 results exceeded estimates. Cloudflare reported adjusted EPS of $0.29, ahead of the $0.27 consensus, while revenue reached $696.06 million versus expectations of $664.66 million. The revenue beat indicates continued demand for the company’s connectivity, security and developer services. Cloudflare Stock Pops on Q2 Earnings Print
• Positive Sentiment: Third-quarter guidance was well above consensus. Cloudflare forecast EPS of $0.34 and revenue of $736 million to $737 million, compared with analyst estimates of $0.26 and $722.4 million, respectively. The outlook suggests management expects momentum to continue and may help support the company’s growth premium. Cloudflare Q2 Earnings and Guidance
• Positive Sentiment: AI product expansion adds to the growth story. Cloudflare launched an AEO Visibility Dashboard that shows whether AI assistants recommend a customer’s business. The company also recently introduced Identity-Aware AI Gateway and Cloudflare OS, expanding its opportunity in AI security, governance and enterprise infrastructure. Cloudflare Adds AEO Visibility Dashboard
• Neutral Sentiment: Profitability remains a consideration. Despite the adjusted EPS beat, Cloudflare continues to report a negative net margin and negative return on equity. Investors will likely focus on whether strong revenue growth translates into sustained GAAP profitability and cash-flow improvement.
• Negative Sentiment: Valuation and insider selling remain risks. Cloudflare’s market capitalization and valuation multiples leave limited room for weaker growth or disappointing guidance. CEO Matthew Prince also sold multiple blocks of shares totaling tens of millions of dollars under pre-arranged Rule 10b5-1 plans. While scheduled sales do not necessarily signal deteriorating fundamentals, they may temper sentiment. Cloudflare CEO Stock Sale

Cloudflare Company Profile

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.