Cloudflare, Inc. (NYSE:NET), a leading web infrastructure and website security company, has reported a series of transactions by its President and Chief Operating Officer, Michelle Zatlyn. According to the latest filings, Zatlyn sold shares of Cloudflare's Class A Common Stock totaling over $5.7 million, with prices ranging from $86.9683 to $90.4573 per share.
The transactions occurred over three consecutive days, starting on April 16, 2024, and ending on April 18, 2024. While the exact number of shares sold at each price point within the range was not disclosed, the weighted average prices for these sales were provided in the footnotes of the filing, indicating a series of multiple transactions.
It's notable that the sales were conducted in accordance with a Rule 10b5-1 trading plan, which was adopted by Zatlyn on November 30, 2022. These plans allow company insiders to sell a predetermined number of shares at a predetermined time, providing a defense against potential accusations of trading on nonpublic information.
In addition to the sales, the filings also reported that Zatlyn acquired a substantial number of shares through option exercises, which are reported with a transaction code of "C" for conversion. However, these transactions were listed with a total value and price of $0, indicating that no actual funds were exchanged for these shares at the time of conversion.
The filing included detailed footnotes explaining the nature of ownership for various shares, including those held in trust for which Zatlyn serves as a co-trustee or has an investment advisory role.
Cloudflare's stock, traded under the ticker NET, is watched closely by investors who are interested in the tech sector and cybersecurity industry. The transactions by a high-ranking executive like Zatlyn are often scrutinized for insights into the company's performance and the confidence of its leadership in the firm's future prospects.
Investors and analysts typically monitor such insider transactions as part of their due diligence and analysis, considering them alongside other factors affecting the company's stock performance and overall market conditions.
InvestingPro Insights
In light of the recent insider transactions at Cloudflare, Inc. (NYSE:NET), investors may find additional context by considering the company's current financial metrics and analyst expectations.
InvestingPro Data indicates that Cloudflare has a market capitalization of $29.28 billion USD, despite a negative Price-to-Earnings (P/E) ratio of -156.62, which suggests that investors are anticipating future growth. The company's revenue for the last twelve months as of Q4 2023 was reported at $1.296 billion USD, with a notable growth of 32.97% during the same period. This is complemented by an impressive gross profit margin of 76.32%, reflecting the company's ability to maintain profitability at the operational level.
Among the InvestingPro Tips, it is highlighted that analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Additionally, while the stock has experienced a significant drop over the last week, with a one-week price total return of -7.52%, Cloudflare's shares have seen a substantial increase over the last six months, with a price total return of 38.1%.
For those seeking a deeper analysis, there are 13 additional InvestingPro Tips available, which can provide further insights into Cloudflare's financial health and market position. To access these tips and comprehensive financial data, 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 offer may help investors make more informed decisions based on the latest data and expert analysis.
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