Insider Selling: Cloudflare (NYSE:NET) CFO Sells $3,324,600.00 in Stock

Cloudflare, Inc. (NYSE:NET) CFO Thomas Seifert sold 10,000 shares of the business’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $332.46, for a total transaction of $3,324,600.00. Following the transaction, the chief financial officer directly owned 107,902 shares of the company’s stock, valued at $35,873,098.92. The trade was a 8.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Cloudflare Price Performance

Shares of NET opened at $353.21 on Thursday. The business’s 50-day moving average is $296.73 and its 200-day moving average is $248.51. The company has a debt-to-equity ratio of 1.22, a current ratio of 1.82 and a quick ratio of 1.82. The company has a market capitalization of $124.85 billion, a price-to-earnings ratio of -608.98, a P/E/G ratio of 280.75 and a beta of 1.66. Cloudflare, Inc. has a fifty-two week low of $158.83 and a fifty-two week high of $364.23.

Cloudflare (NYSE:NET) last released its earnings results 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. Cloudflare had a negative net margin of 8.21% and a negative return on equity of 3.88%. The firm had revenue of $696.06 million during the quarter, compared to analyst estimates of $664.66 million. During the same quarter in the previous year, the business earned $0.21 EPS. The business’s revenue was up 35.9% on a year-over-year basis. Cloudflare has set its Q3 2026 guidance at 0.340-0.340 EPS and its FY 2026 guidance at 1.250-1.260 EPS. Equities research analysts expect that Cloudflare, Inc. will post 0.03 EPS for the current fiscal year.

Key Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cybersecurity stocks rallied after warnings about unpredictable AI behavior increased demand expectations for AI security tools. Cloudflare is positioned as an edge-security and internet-infrastructure provider, giving it potential exposure to this broader investment theme. 7 Cybersecurity Stocks Riding the AI Security Boom
• Positive Sentiment: Options traders purchased a large volume of Cloudflare call options, signaling increased speculative interest in further upside. Options activity can support near-term momentum, although it does not change the company’s fundamentals. Traders Purchase Large Volume of Call Options on Cloudflare
• Positive Sentiment: Cloudflare’s latest quarterly results provide a fundamental backdrop for bullish sentiment: revenue grew 35.9% year over year to $696.1 million and adjusted earnings exceeded consensus estimates. Management’s fiscal 2026 guidance also points to continued growth.
• Neutral Sentiment: One recent comparison article highlights investor interest in Cloudflare, while another examines the potential impact if its growth rate cools. These reports reinforce that the stock’s outlook depends heavily on sustaining strong expansion. What Happens to Cloudflare Stock If Its Growth Cools?
• Negative Sentiment: Director Carl Ledbetter sold 5,000 shares for approximately $1.8 million, reducing his direct position by 0.57%. The sale was made under a pre-arranged Rule 10b5-1 plan, which makes it less concerning than discretionary selling, but it adds to recent insider-selling activity. CFO Thomas Seifert previously sold 10,000 shares for about $3.3 million under a similar plan.
• Negative Sentiment: Valuation remains a major vulnerability. Cloudflare trades near its 52-week high at a very high growth multiple, leaving limited room for execution disappointments, slower revenue growth or weaker software-sector sentiment.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Lingotto Investment Management LLP bought a new stake in Cloudflare in the fourth quarter valued at $34,626,000. Jupiter Asset Management Ltd. lifted its holdings in shares of Cloudflare by 1,984.7% during the fourth quarter. Jupiter Asset Management Ltd. now owns 197,710 shares of the company’s stock valued at $38,979,000 after acquiring an additional 188,226 shares during the period. Pictet Asset Management Holding SA boosted its stake in shares of Cloudflare by 17.6% in the 1st quarter. Pictet Asset Management Holding SA now owns 1,381,985 shares of the company’s stock valued at $284,900,000 after purchasing an additional 206,506 shares in the last quarter. Insight Holdings Group LLC acquired a new stake in shares of Cloudflare in the 1st quarter valued at $6,768,000. Finally, Plato Investment Management Ltd bought a new stake in shares of Cloudflare in the 2nd quarter worth about $1,499,000. Institutional investors own 82.68% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts have recently commented on NET shares. Citizens Jmp reiterated a “market outperform” rating and set a $394.00 price target on shares of Cloudflare in a report on Monday, August 31st. Scotiabank boosted their target price on shares of Cloudflare from $300.00 to $390.00 and gave the stock an “outperform” rating in a research report on Friday, August 7th. Oppenheimer upped their target price on shares of Cloudflare from $330.00 to $380.00 and gave the company an “outperform” rating in a research note on Friday, August 7th. Guggenheim increased their price target on shares of Cloudflare from $140.00 to $160.00 and gave the company a “sell” rating in a report on Friday, August 7th. Finally, Mizuho raised their price target on shares of Cloudflare from $260.00 to $310.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 15th. One analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, seven have issued a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, Cloudflare presently has an average rating of “Moderate Buy” and a consensus target price of $321.85.

About Cloudflare

Cloudflare, Inc is a technology company that provides cloud-based connectivity, security and performance services for websites, applications, networks and other internet-connected resources. Its platform is designed to help organizations deliver digital content more quickly, protect against cyber threats and manage internet traffic across a global network.

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