Insider Selling: Cloudflare (NYSE:NET) Director Sells $1,765,750.00 in Stock

Cloudflare, Inc. (NYSE:NET) Director Carl Ledbetter sold 5,000 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $353.15, for a total value of $1,765,750.00. Following the completion of the transaction, the director owned 873,073 shares of the company’s stock, valued at $308,325,729.95. This represents a 0.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carl Ledbetter also recently made the following trade(s):

• On Monday, September 14th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The stock was sold at an average price of $312.22, for a total value of $1,561,100.00.
• On Thursday, August 6th, Carl Ledbetter sold 5,000 shares of Cloudflare stock. The shares were sold at an average price of $281.98, for a total value of $1,409,900.00.
• 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 Stock Down 2.9%

NYSE:NET opened at $348.41 on Friday. The firm’s 50 day simple moving average is $299.84 and its 200 day simple moving average is $250.35. 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 one year low of $158.83 and a one year high of $367.43. The company has a market cap of $123.15 billion, a PE ratio of -600.70, a P/E/G ratio of 285.38 and a beta of 1.66.

Cloudflare (NYSE:NET) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.02. The firm had revenue of $696.06 million during the quarter, compared to analysts’ expectations 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 revenue was up 35.9% on a year-over-year basis. During the same period in the prior year, the company posted $0.21 EPS. 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, research analysts anticipate that Cloudflare, Inc. will post 0.03 earnings per share for the current year.

Wall Street Analysts Forecast Growth

NET has been the subject of a number of analyst reports. Deutsche Bank Aktiengesellschaft upgraded Cloudflare to a “buy” rating in a research report on Tuesday, July 7th. KeyCorp upped their target price on Cloudflare from $300.00 to $375.00 and gave the company an “overweight” rating in a report on Friday, August 7th. TD Cowen increased their target price on shares of Cloudflare from $300.00 to $355.00 and gave the company a “buy” rating in a research report on Friday, August 7th. Mizuho raised their price target on shares of Cloudflare from $260.00 to $310.00 and gave the stock an “outperform” rating in a report on Wednesday, July 15th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Cloudflare in a research report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Cloudflare presently has a consensus rating of “Moderate Buy” and a consensus target price of $321.85.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. CX Institutional lifted 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. Wealth Architects LLC grew its stake in Cloudflare by 4.6% in the 2nd quarter. Wealth Architects LLC now owns 1,022 shares of the company’s stock valued at $251,000 after purchasing an additional 45 shares during the period. Cornerstone Financial Management LLC grew its stake in Cloudflare by 65.3% in the 2nd quarter. Cornerstone Financial Management LLC now owns 119 shares of the company’s stock valued at $29,000 after purchasing an additional 47 shares during the period. Forum Financial Management LP increased its position in shares of Cloudflare by 3.5% during the 2nd quarter. Forum Financial Management LP now owns 1,498 shares of the company’s stock valued at $367,000 after purchasing an additional 50 shares during the last quarter. Finally, Quadrant Private Wealth Management LLC increased its position in shares of Cloudflare by 3.2% during the 1st quarter. Quadrant Private Wealth Management LLC now owns 1,653 shares of the company’s stock valued at $341,000 after purchasing an additional 51 shares during the last quarter. 82.68% of the stock is owned by institutional investors and hedge funds.

More Cloudflare News

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Cloudflare launched granular AI crawler controls, including a “Disallow AI Training” setting and an “Accountable” designation for crawlers that identify themselves and follow publisher preferences. The tools could strengthen Cloudflare’s strategic role in managing how websites interact with AI search, training and agent platforms. Cloudflare AI Crawler Controls
• Positive Sentiment: Cloudflare’s unified platform is reportedly helping it win larger enterprise deals as customers consolidate security, networking and developer services with one provider. This supports the long-term growth case and may increase revenue per customer. Cloudflare Unified Platform Strategy
• Positive Sentiment: Cloudflare received some sector support from a broader AI-infrastructure rally after Akamai announced an $11.6 billion cloud commitment from Anthropic. Investors may view Cloudflare as another beneficiary of rising demand for AI connectivity, security and edge infrastructure. Akamai Anthropic Cloud Deal
• Neutral Sentiment: Cloudflare’s latest reported quarter showed strong fundamentals, with revenue up 35.9% year over year to $696.1 million and EPS of $0.29, ahead of the $0.27 consensus estimate. However, the stock’s recent 30-day and year-to-date gains have raised expectations for continued rapid execution.
• Negative Sentiment: BUFFALO Mid Cap Discovery Fund said its underweight position in Cloudflare created a relative performance headwind. The disclosure highlights that some active managers remain cautious even as the stock rallies. BUFFALO Fund Cloudflare Position
• Negative Sentiment: Valuation is a significant risk: Cloudflare’s market capitalization is approximately $123 billion, while its reported valuation metrics remain extremely elevated and the company continues to post a negative net margin. Any slowdown in growth could prompt further multiple compression.
• Negative Sentiment: Director Carl Ledbetter sold 5,000 shares for roughly $1.8 million under a pre-arranged Rule 10b5-1 plan. The sale reduced his holdings by only 0.57%, limiting its significance, but repeated insider selling can add pressure to sentiment. Cloudflare Director Share Sale

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.