Cloudflare (NYSE:NET) CFO Sells $7,689,707.28 in Stock

Cloudflare, Inc. (NYSE:NET) CFO Thomas Seifert sold 41,557 shares of the company’s stock in a transaction on Friday, February 20th. The shares were sold at an average price of $185.04, for a total value of $7,689,707.28. Following the completion of the transaction, the chief financial officer directly owned 85,452 shares in the company, valued at $15,812,038.08. This represents a 32.72% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Cloudflare Price Performance

Shares of NYSE:NET traded up $3.44 on Tuesday, reaching $163.63. 4,801,510 shares of the company traded hands, compared to its average volume of 6,764,635. The stock has a market capitalization of $57.32 billion, a PE ratio of -564.21 and a beta of 1.97. The company has a debt-to-equity ratio of 1.46, a current ratio of 2.04 and a quick ratio of 2.04. The company’s 50 day moving average is $187.11 and its 200-day moving average is $203.56. Cloudflare, Inc. has a fifty-two week low of $89.42 and a fifty-two week high of $260.00.

Cloudflare (NYSE:NET) last announced its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.27 by $0.01. The company had revenue of $614.51 million for the quarter, compared to analyst estimates of $591.67 million. Cloudflare had a negative return on equity of 7.40% and a negative net margin of 4.72%.Cloudflare’s revenue for the quarter was up 33.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.19 earnings per share. As a group, analysts anticipate that Cloudflare, Inc. will post -0.11 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have issued reports on the stock. Barclays boosted their target price on shares of Cloudflare from $235.00 to $250.00 and gave the company an “overweight” rating in a research note on Wednesday, February 11th. Royal Bank Of Canada increased their price objective on Cloudflare from $230.00 to $240.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 11th. Morgan Stanley set a $245.00 price objective on Cloudflare in a research report on Wednesday, February 11th. Scotiabank dropped their target price on Cloudflare from $255.00 to $225.00 and set a “sector perform” rating on the stock in a report on Wednesday, February 11th. Finally, Susquehanna set a $190.00 price target on shares of Cloudflare in a report on Thursday, February 12th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $230.70.

Key Headlines Impacting Cloudflare

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Product differentiation — Cloudflare says its Cloudflare One SASE platform is the first to support modern post‑quantum encryption, a security and compliance advantage that can help win enterprise deals and justify premium pricing. Read More.
• Positive Sentiment: Commercial partnership — Cloudflare announced a strategic partnership with Mastercard to build small‑business tools, which could accelerate SMB adoption and expand go‑to‑market reach. Read More.
• Positive Sentiment: Fundamentals — recent quarterly results showed a small EPS beat and ~34% revenue growth year‑over‑year, supporting growth expectations despite negative margins (investors see revenue momentum as a tailwind).
• Neutral Sentiment: Minor institutional buying — a modest 13F filing showed an increased position by an institutional investor, a limited vote of confidence but not large enough to change ownership dynamics materially. Read More.
• Negative Sentiment: AI disruption fears — Anthropic’s new tool that scans code for vulnerabilities spooked the cybersecurity sector, prompting broad selling in security and networking names (Cloudflare was caught up in the selloff). Read More.
• Negative Sentiment: Macro/tech risk — reports that the White House plans to raise global tariffs to 15% triggered risk‑off flows in growth tech, which hit Cloudflare as investors reduced exposure to higher‑beta names. Read More.
• Negative Sentiment: Insider selling — COO Michelle Zatlyn sold large blocks of shares across Feb. 19–23, substantially reducing her stake; heavy insider sales can increase perceived near‑term supply and weigh on sentiment. Read More.
• Negative Sentiment: Headline skepticism — opinion/analysis pieces question whether new LLMs (e.g., Claude) will commoditize parts of Cloudflare’s security stack, adding uncertainty about long‑term pricing power. Read More.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Reliant Investment Partners LLC increased its position in Cloudflare by 1.5% during the third quarter. Reliant Investment Partners LLC now owns 3,316 shares of the company’s stock worth $718,000 after buying an additional 50 shares during the last quarter. Daymark Wealth Partners LLC increased its holdings in shares of Cloudflare by 1.1% during the 2nd quarter. Daymark Wealth Partners LLC now owns 4,556 shares of the company’s stock valued at $892,000 after acquiring an additional 51 shares during the last quarter. Frank Rimerman Advisors LLC raised its stake in shares of Cloudflare by 1.8% in the 3rd quarter. Frank Rimerman Advisors LLC now owns 2,821 shares of the company’s stock valued at $605,000 after acquiring an additional 51 shares in the last quarter. Huntington National Bank lifted its holdings in Cloudflare by 22.8% in the 2nd quarter. Huntington National Bank now owns 280 shares of the company’s stock worth $55,000 after purchasing an additional 52 shares during the last quarter. Finally, IMA Advisory Services Inc. lifted its holdings in Cloudflare by 4.5% in the 4th quarter. IMA Advisory Services Inc. now owns 1,290 shares of the company’s stock worth $254,000 after purchasing an additional 55 shares during the last quarter. Institutional investors own 82.68% of the company’s stock.

About Cloudflare

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.