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Cloudflare director Ledbetter sells over $2.1 million in stock

Published 10/05/2024, 06:32 am

Cloudflare, Inc. (NYSE:NET) has reported that Director Carl Ledbetter sold a total of 30,145 shares of Class A Common Stock on May 8, 2024, for a total transaction value of over $2.1 million. The shares were sold at prices ranging from $72.839 to $73.5069, according to a recent SEC filing.

The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information. This plan had been adopted by Ledbetter on February 28, 2023. Such plans are commonly used by corporate executives to avoid accusations of insider trading.

The transactions took place in two separate tranches. In the first tranche, Ledbetter sold 29,116 shares at an average weighted price of $72.839. In the second tranche, 1,029 shares were sold at an average weighted price of $73.5069. The SEC filing included a footnote indicating that the shares were sold in multiple transactions at prices within the given ranges.

Following these transactions, Ledbetter still holds a significant number of shares indirectly through the Carl S. Ledbetter Trust, for which he serves as a trustee. The trust held 1,166,648 shares after the sales were completed.

Investors and analysts often monitor insider sales for insights into a company's health and the confidence level of its executives. However, sales made under 10b5-1 trading plans are generally viewed as less indicative of an insider's sentiment towards the company's future prospects, since the sales are planned in advance.

Cloudflare, Inc. is a global company specializing in internet security services and distributed domain name server services, marking its presence in the tech industry as a significant player. The transactions come at a time when insider trading activity is closely watched by investors seeking clues about the company's performance and future direction.

InvestingPro Insights

As Cloudflare, Inc. (NYSE:NET) navigates through a period marked by insider trading activity, investors are keenly analyzing the company's financial metrics and market position. The recent sale of shares by Director Carl Ledbetter aligns with a moment when Cloudflare's market dynamics appear to be in flux. Here are some real-time data and insights from InvestingPro that may shed light on the company's current situation:

The company's market capitalization stands at a robust $24.92 billion, reflecting investor confidence in its scale and market presence. Cloudflare's gross profit margin is notably high at 76.78% for the last twelve months as of Q1 2024, indicating strong operational efficiency and the ability to retain a significant portion of revenue after accounting for the cost of goods sold. Despite not being profitable over the last twelve months, with a P/E ratio (adjusted) of -180.38, Cloudflare's revenue growth remains impressive, with a 31.51% increase in the last twelve months as of Q1 2024.

InvestingPro Tips suggest that Cloudflare's net income is expected to grow this year, a positive signal for potential investors. Additionally, a total of 16 analysts have revised their earnings upwards for the upcoming period, indicating a consensus of improved financial performance on the horizon. However, it's worth noting that the stock has experienced a significant price drop over the last three months, with a 32.87% decrease in its 3-month price total return as of the 130th day of 2024.

For investors looking to delve deeper into Cloudflare's financials and future earnings potential, there are additional InvestingPro Tips available. To explore these further insights, visit https://www.investing.com/pro/NET and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This exclusive offer grants access to a wealth of financial data and expert analysis to help make informed investment decisions.

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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