Cloudflare (NYSE:NET) Shares Down 7.6% on Insider Selling

Cloudflare, Inc. (NYSE:NET) shares traded down 7.6% during trading on Thursday after an insider sold shares in the company. The company traded as low as $196.45 and last traded at $195.1910. 919,231 shares traded hands during trading, a decline of 79% from the average session volume of 4,464,438 shares. The stock had previously closed at $211.25.

Specifically, CEO Matthew Prince sold 51,725 shares of the company’s stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $213.59, for a total value of $11,047,942.75. Following the sale, the chief executive officer owned 659 shares in the company, valued at $140,755.81. This represents a 98.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Matthew Prince sold 52,384 shares of the company’s stock in a transaction that occurred on Monday, April 6th. The stock was sold at an average price of $210.02, for a total value of $11,001,687.68. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Cloudflare news, CEO Matthew Prince sold 659 shares of the stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $223.62, for a total transaction of $147,365.58. Following the sale, the chief executive officer owned 406,315 shares in the company, valued at approximately $90,860,160.30. This represents a 0.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

NET has been the topic of a number of analyst reports. Zacks Research upgraded Cloudflare from a “strong sell” rating to a “hold” rating in a report on Friday, March 13th. Scotiabank lowered 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. DZ Bank upgraded Cloudflare from a “hold” rating to a “buy” rating and set a $215.00 target price on the stock in a report on Friday, February 13th. Wolfe Research reiterated a “peer perform” rating on shares of Cloudflare in a report on Monday, January 26th. Finally, BTIG Research increased their target price on Cloudflare from $199.00 to $243.00 and gave the company a “buy” rating in a report on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $233.38.

Cloudflare News Roundup

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Product & partnership wins reinforce the long‑term growth case — Virtru announced object‑level data governance for Cloudflare R2 (boosts R2 security/enterprise appeal). Read More.
• Positive Sentiment: Strategic distribution and security positioning remain intact — recent partner integrations (e.g., GoDaddy) and Cloudflare’s push on post‑quantum and edge AI/ security support continued revenue and product momentum that underpins the longer‑term thesis. Read More.
• Neutral Sentiment: Analyst consensus stays generally constructive (consensus “Moderate Buy” / mixed price targets), so current weakness looks more sentiment‑driven than a wholesale downgrade of fundamentals. Read More.
• Negative Sentiment: Sector‑wide repricing tied to AI‑agent fears and risk‑off moves hit enterprise software broadly — traders pared positions in high‑multiple names, which amplified Cloudflare’s decline despite no new negative company guidance. Read More.
• Negative Sentiment: Insider sales and perception of elevated insider activity added short‑term pressure — CEO Matthew Prince sold stock under a 10b5‑1 plan (multiple filings), which media and traders flagged as incremental selling flow. Read More.
• Negative Sentiment: Market commentary flagged valuation sensitivity and profit‑taking after recent gains — quick analyst target trims and crowded positioning magnified today’s move. Read More.

Cloudflare Stock Down 8.9%

The company has a current ratio of 1.98, a quick ratio of 1.98 and a debt-to-equity ratio of 1.35. The firm has a market capitalization of $67.75 billion, a PE ratio of -663.73 and a beta of 1.87. The firm has a 50-day moving average of $194.79 and a two-hundred day moving average of $202.42.

Cloudflare (NYSE:NET) last issued its earnings results on Tuesday, February 10th. The company reported $0.28 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.01. The business 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 7.24% and a negative net margin of 4.72%.The business’s quarterly revenue was up 33.6% on a year-over-year basis. During the same period last year, the company posted $0.19 EPS. On average, equities research analysts forecast that Cloudflare, Inc. will post -0.11 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Empowered Funds LLC raised its position in Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company’s stock valued at $750,000 after purchasing an additional 1,696 shares during the period. Sivia Capital Partners LLC purchased a new position in Cloudflare in the second quarter valued at about $424,000. Cerity Partners LLC raised its position in Cloudflare by 30.1% in the second quarter. Cerity Partners LLC now owns 27,531 shares of the company’s stock valued at $5,391,000 after purchasing an additional 6,363 shares during the period. Ossiam raised its position in Cloudflare by 2.0% in the second quarter. Ossiam now owns 3,343 shares of the company’s stock valued at $655,000 after purchasing an additional 64 shares during the period. Finally, Daiwa Securities Group Inc. raised its position in Cloudflare by 1.6% in the second quarter. Daiwa Securities Group Inc. now owns 25,052 shares of the company’s stock valued at $4,906,000 after purchasing an additional 400 shares during the period. 82.68% of the stock is owned by hedge funds and other institutional investors.

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.