Thomas J. Seifert, Chief Financial Officer of Cloudflare, Inc. (NYSE:NET), recently sold shares of the company valued at approximately $1.65 million, according to a filing with the Securities and Exchange Commission. The transactions occurred on December 4, 2024, and involved the sale of a total of 15,000 shares of Class A Common Stock at prices ranging from $107.68 to $110.64 per share. The sale comes as Cloudflare's stock trades near its 52-week high of $116, having delivered an impressive 58.51% return over the past six months.
Following these transactions, Seifert holds 252,869 shares directly. The sales were executed under a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan to sell stocks, typically to avoid any accusations of insider trading. According to InvestingPro analysis, Cloudflare currently appears overvalued based on its Fair Value assessment, with 15+ additional real-time insights available to subscribers.
In addition to the sales, Seifert also exercised stock options, acquiring 15,000 shares of Class B Common Stock, which are convertible into Class A Common Stock on a one-to-one basis. These options were exercised at a price of $2.04 per share. The company maintains strong liquidity with a current ratio of 3.37 and impressive gross profit margins of 77.53%.
In other recent news, Cloudflare Inc (NYSE:NET). has made significant strides in its financial performance. Morgan Stanley (NYSE:MS) upgraded Cloudflare's stock from Equal-weight to Overweight, predicting strong performance and revenue acceleration through 2025. The firm's new price target is $130.00, up from $92.00, reflecting growth factors such as multiple product cycles, a growing Edge AI contribution, and a fully ramped enterprise sales force.
Additionally, Cloudflare reported a robust growth in its third-quarter earnings, with a 28% year-over-year increase in revenue, reaching $430.1 million. The company has also seen a significant rise in its customer base, now standing at 3,265, marking a 28% increase from the previous year. This growth is driven by Cloudflare's strategic involvement in cybersecurity efforts and its focus on enterprise sales.
Looking ahead, Cloudflare anticipates continued growth in sales capacity and productivity. Revenue projections for Q4 2023 indicate a 25% year-over-year increase, with projected revenue between $451 million and $452 million. The company also expects full-year 2024 revenue to be between $1.661 billion and $1.662 billion. These recent developments highlight Cloudflare's strong financial performance and growth trajectory.
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