SAN FRANCISCO—Cloudflare, Inc. (NYSE:), a $38.5 billion market cap company trading near its 52-week high of $119.42, saw its CEO and Chairman of the Board, Matthew Prince, execute a series of transactions involving the Class A company. common stock in recent days, according to a recent SEC filing.
On December 18, 19, and 20, Prince sold a total of 108,129 shares, with prices ranging from $107.81 to $117.07 per share. The total value of these sales amounted to approximately $17.5 million. InvestingPro data shows that the company maintains impressive fundamentals with a gross profit margin of 77.5% and strong revenue growth of 30% year over year.
The transactions were conducted pursuant to a Rule 10b5-1 trading plan, which allows company insiders to establish a predetermined plan for selling shares. Following these sales, Prince’s direct ownership amounts to 172,959 shares of Cloudflare’s Class A common stock.
These transactions are part of a routine financial strategy and do not necessarily indicate any change in Prince’s view of the company.
In other recent news, Cloudflare, a cybersecurity provider, has been the focus of positive updates and forecasts from several analysts. Baird maintained his Outperform rating on the company and raised his price target based on expected revenue growth. The firm highlighted Cloudflare’s strong position in the field of artificial intelligence, which supports its premium valuation.
Additionally, Stifel upgraded Cloudflare from Hold to Buy, reflecting confidence in the company’s potential for sustained revenue growth and improved profitability. Morgan Stanley (NYSE 🙂 also upgraded Cloudflare from equal weight to overweight, citing several growth factors that could accelerate revenue throughout 2025.
Citi maintained its Neutral rating on Cloudflare, noting that the company’s pooling deals are driving significant purchases and improving visibility among large companies. Despite some mixed effects, Citi analysts believe revenue headwinds from these deals are expected to decline by 2025.
These are recent developments that investors should consider, as they provide insight into Cloudflare’s financial performance and future growth prospects. It is worth noting that the company’s revenue growth forecast is 28% for fiscal 2024 and anticipates continued growth in sales capacity and productivity. Cloudflare’s financial performance is further supported by a strong gross margin of 78.8% and net income of $72.6 million.
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