Cloudflare (NYSE:NET) Director Carl Ledbetter Sells 5,000 Shares

Cloudflare, Inc. (NYSE:NET) Director Carl Ledbetter sold 5,000 shares of the firm’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $281.98, for a total transaction of $1,409,900.00. Following the transaction, the director directly owned 883,073 shares in the company, valued at $249,008,924.54. The trade was a 0.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available 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 shares were sold at an average price of $268.11, for a total transaction of $1,340,550.00.

Cloudflare Price Performance

Shares of NYSE:NET opened at $283.33 on Friday. Cloudflare, Inc. has a one year low of $158.83 and a one year high of $305.00. The stock has a market capitalization of $100.15 billion, a price-to-earnings ratio of -1,133.31, a PEG ratio of 219.10 and a beta of 1.65. The company has a 50-day simple moving average of $255.83 and a 200-day simple moving average of $218.26. The company has a debt-to-equity ratio of 1.29, a quick ratio of 1.96 and a current ratio of 1.96.

Cloudflare (NYSE:NET) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.29 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.02. The firm had revenue of $696.06 million for the quarter, compared to analyst estimates of $664.66 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The business’s revenue was up 35.9% on a year-over-year basis. During the same quarter last year, the company posted $0.21 earnings per share. On average, analysts predict that Cloudflare, Inc. will post 0.03 EPS for the current year.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare beat second-quarter expectations. The company reported adjusted EPS of $0.29 versus the $0.27 consensus and revenue of $696.06 million versus estimates of approximately $664.7 million. Revenue increased 35.9% year over year, reinforcing demand for Cloudflare’s connectivity, security and developer products. Cloudflare Q2 earnings report
• Positive Sentiment: Management raised its outlook above Wall Street forecasts. Full-year 2026 EPS guidance increased to $1.25-$1.26, compared with consensus of $0.96, while revenue guidance was set at approximately $2.9 billion versus expectations of $2.8 billion. Third-quarter guidance also exceeded estimates, with EPS of $0.34 and revenue of $736-$737 million. Cloudflare raises annual outlook
• Positive Sentiment: AI demand is becoming a major growth driver. Cloudflare cited rising AI-agent traffic across its network and launched tools including an AEO Visibility Dashboard, Identity-Aware AI Gateway and Cloudflare OS. These offerings could expand its enterprise security, AI infrastructure and developer-platform markets. Cloudflare AEO Visibility Dashboard
• Neutral Sentiment: Analyst reaction is mixed. Jefferies maintained a Hold rating, while broader coverage remains generally favorable. The stock’s high beta and sharp recent rally may be contributing to profit-taking even after the earnings beat.
• Negative Sentiment: Insider selling may weigh on sentiment. CEO Matthew Prince sold more than $45 million of shares across multiple transactions, and director Carl Ledbetter sold 5,000 shares for about $1.4 million. The transactions were conducted under pre-arranged Rule 10b5-1 plans, limiting their value as a signal about business prospects, but they can still pressure investor sentiment. SEC insider filing
• Negative Sentiment: Valuation remains a key risk. With Cloudflare valued at roughly $100 billion and still reporting a negative net margin, investors may demand continued acceleration in growth, profitability and cash flow. Any guidance or AI-demand disappointment could trigger further volatility.

Analysts Set New Price Targets

Several research firms have recently commented on NET. UBS Group upped their price target on Cloudflare from $220.00 to $250.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 10th. The Goldman Sachs Group lowered shares of Cloudflare from a “buy” rating to a “sell” rating in a research report on Wednesday, April 15th. Jefferies Financial Group reissued a “hold” rating and issued a $290.00 price objective on shares of Cloudflare in a research note on Tuesday. New Street Research restated a “market outperform” rating on shares of Cloudflare in a research report on Monday, June 15th. Finally, Benchmark cut shares of Cloudflare to an “underperform” rating in a research note on Tuesday, July 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $267.38.

Institutional Investors Weigh In On Cloudflare

Several institutional investors have recently modified their holdings of the company. Wiser Advisor Group LLC purchased a new position in Cloudflare in the 3rd quarter valued at approximately $26,000. HM Payson & Co. purchased a new stake in Cloudflare during the fourth quarter worth $25,000. CX Institutional boosted its position in Cloudflare by 49.4% during the second quarter. CX Institutional now owns 133 shares of the company’s stock worth $33,000 after purchasing an additional 44 shares in the last quarter. Cape Investment Advisory Inc. purchased a new stake in Cloudflare during the second quarter worth $33,000. Finally, Wexford Capital LP acquired a new stake in Cloudflare in the third quarter valued at $30,000. Hedge funds and other institutional investors own 82.68% of the company’s stock.

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.