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Cloudflare CFO sells shares worth over $1.1 million

Published 07/05/2024, 06:24 am

Cloudflare, Inc. (NYSE:NET) Chief Financial Officer Thomas J. Seifert has sold a portion of his company stock, according to a recent regulatory filing. The transactions, carried out on May 3, 2024, involved the sale of Cloudflare shares at prices ranging from $73.282 to $77.77, amounting to a total of $1,109,476.

The sales occurred through multiple transactions within the specified price range. Specifically, Seifert sold 4,696 shares at an average price of $73.282, 9,004 shares at an average of $74.0992, 900 shares at $74.9978 on average, 300 shares at an average of $76.2667, and 100 shares at $77.77. These sales were executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which Seifert had adopted on November 27, 2023.

The Rule 10b5-1 trading plan allows company insiders to sell a predetermined number of shares at a predetermined time, providing a legal defense against potential accusations of insider trading. It is a common tool used by corporate executives to avoid the appearance of impropriety when they dispose of stock in their own companies.

Following the sales, Seifert still holds a significant number of shares in the company. The filing did not indicate any purchases of Cloudflare stock by the CFO on the same date.

Cloudflare's stock performance and the executive's decision to sell shares are watched closely by investors as potential indicators of the company's financial health and future prospects. However, it is important to note that the selling of shares by executives can be influenced by various factors, including personal financial planning, and does not necessarily reflect a lack of confidence in the company.

Investors and those interested in Cloudflare's corporate actions can access the full details of Seifert's transactions on the Securities and Exchange Commission's website.

InvestingPro Insights

Following the news of Cloudflare, Inc. (NYSE:NET) CFO Thomas J. Seifert's stock sale, investors may be curious about the company's financial health and stock performance. According to InvestingPro, Cloudflare has exhibited some notable financial metrics and market behaviors. With a market capitalization of $25.24 billion, the company stands as a significant player in the cloud services industry.

An InvestingPro Tip highlights that Cloudflare's net income is expected to grow this year, which could be an encouraging sign for investors looking for long-term growth potential. Additionally, 12 analysts have revised their earnings upwards for the upcoming period, indicating a positive sentiment surrounding the company's financial prospects.

From the real-time data available on InvestingPro, Cloudflare's gross profit margin for the last twelve months as of Q1 2024 is impressive at 76.78%, pointing towards a strong ability to control costs relative to revenue. However, the P/E Ratio (Adjusted) for the same period stands at -182.72, reflecting high growth expectations from investors, which may also suggest a premium valuation. The company's stock has taken a hit over the last week, with a 1-week price total return of -17.01%, yet it has had a high return of 68.82% over the last year, demonstrating significant volatility but also strong performance over a longer period.

Investors considering Cloudflare as a potential addition to their portfolio can find additional InvestingPro Tips by visiting https://www.investing.com/pro/NET. To enrich their investment decision-making, users may also apply the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are currently 15 additional tips listed on InvestingPro, offering a broader analysis of Cloudflare's financial health and stock performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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