Insider Selling: Cloudflare (NYSE:NET) CFO Sells $3,744,875.00 in Stock

Cloudflare, Inc. (NYSE:NET) CFO Thomas Seifert sold 12,500 shares of the company’s stock in a transaction that occurred on Monday, October 19th. The stock was sold at an average price of $299.59, for a total transaction of $3,744,875.00. Following the sale, the chief financial officer directly owned 104,958 shares in the company, valued at approximately $31,444,367.22. The trade was a 10.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Cloudflare Stock Performance

Shares of NET stock opened at $307.81 on Thursday. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. Cloudflare, Inc. has a 52 week low of $158.83 and a 52 week high of $370.35. The firm has a 50 day moving average of $318.88 and a two-hundred day moving average of $266.41.

Cloudflare (NYSE:NET) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.29 EPS for the quarter, topping the consensus estimate of $0.27 by $0.02. The business had revenue of $696.06 million during the quarter, compared to the consensus estimate of $664.66 million. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The company’s quarterly revenue was up 35.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $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. On average, equities analysts predict that Cloudflare, Inc. will post 0.03 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Cloudflare

Several hedge funds have recently modified their holdings of the stock. GK Wealth Management LLC acquired a new position in Cloudflare in the 3rd quarter valued at $25,000. Toth Financial Advisory Corp purchased a new stake in shares of Cloudflare in the third quarter valued at approximately $36,000. Cornerstone Financial Management LLC boosted its stake in shares of Cloudflare by 65.3% in the second quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after buying an additional 47 shares in the last quarter. C M Bidwell & Associates Ltd. purchased a new stake in shares of Cloudflare in the second quarter valued at approximately $30,000. Finally, CX Institutional grew its holdings in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after acquiring an additional 44 shares during the period. 82.68% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Jefferies Financial Group set a $350.00 price target on Cloudflare in a research note on Friday, August 7th. Robert W. Baird set a $330.00 price target on Cloudflare in a report on Friday, August 7th. Zacks Research cut Cloudflare from a “hold” rating to a “strong sell” rating in a research report on Wednesday, October 14th. Wall Street Zen raised Cloudflare from a “hold” rating to a “buy” rating in a research report on Saturday, October 17th. Finally, BTIG Research boosted their target price on Cloudflare from $382.00 to $413.00 and gave the stock a “buy” rating in a research note on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, six have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, Cloudflare has a consensus rating of “Moderate Buy” and a consensus target price of $330.59.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare is expanding its Cloudflare OS AI workspace with integrations into enterprise software platforms. The broader partner ecosystem could help large businesses deploy AI workflows while keeping data and access controls within Cloudflare’s security infrastructure. Cloudflare Deepens Cloudflare OS Ties With Enterprise Software
• Positive Sentiment: More than 10 million developers are reportedly building on Cloudflare, highlighting the reach of its platform and potentially strengthening future adoption of its security, connectivity and AI products. More than 10 Million Developers Are Building on Cloudflare
• Positive Sentiment: Stifel reiterated a Buy rating, citing opportunities across Cloudflare’s various growth initiatives. The company’s latest reported quarter also showed 35.9% year-over-year revenue growth, an earnings beat and raised full-year 2026 guidance, supporting the growth-stock narrative. Stifel Reiterates Buy on Cloudflare
• Neutral Sentiment: Despite a strong one-year return and rapid sales growth, NET recently experienced a sharp weekly pullback, underscoring elevated volatility. The stock remains above its 200-day moving average but below its 50-day average, reflecting mixed near-term momentum. Cloudflare Stock Risk Analysis
• Negative Sentiment: CFO Thomas Seifert sold 12,500 shares and Director Carl Ledbetter sold 5,000 shares under pre-arranged Rule 10b5-1 plans. The sales were limited relative to their remaining holdings and do not necessarily signal deteriorating fundamentals, but they may add pressure to sentiment. Cloudflare CFO Insider Sale
• Negative Sentiment: Investor concerns include declining gross margins and a reported 20% workforce reduction, which could indicate efforts to improve efficiency but may also raise questions about operating momentum and execution. NET’s very high valuation leaves little room for disappointing growth or profitability. Cloudflare Q2 Earnings Analysis

About Cloudflare

Cloudflare, Inc (NYSE: NET) provides cloud connectivity, security and performance services for websites, applications, corporate networks and other internet-connected resources. Its global network is designed to help organizations improve the reliability, speed and security of digital services while reducing the complexity of managing internet infrastructure.

The company’s offerings include content delivery and authoritative domain name system services, distributed denial-of-service protection, web application and application programming interface security, bot management, and network security tools.