Key Points
- Cloudflare insider Michelle Zatlyn sold 25,641 shares on May 26 at an average price of $211.83, worth about $5.43 million. The sale, executed under a pre-arranged 10b5-1 plan, reduced her ownership by 35.09%.
- The stock has been under pressure, falling 3.8% in the session referenced, even as it remains near its recent trading range with a market cap of about $74 billion.
- Fundamentals and analyst sentiment remain constructive: Cloudflare beat Q1 earnings and revenue estimates, posted 33.5% year-over-year revenue growth, and Wall Street maintains a “Moderate Buy” consensus with an average price target of $236.68.
Cloudflare, Inc. (NYSE:NET - Get Free Report) insider Michelle Zatlyn sold 25,641 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $211.83, for a total value of $5,431,533.03. Following the completion of the transaction, the insider owned 47,425 shares of the company's stock, valued at $10,046,037.75. This trade represents a 35.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Michelle Zatlyn also recently made the following trade(s):
- On Friday, May 22nd, Michelle Zatlyn sold 35,080 shares of Cloudflare stock. The shares were sold at an average price of $213.98, for a total value of $7,506,418.40.
- On Wednesday, April 22nd, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $209.15, for a total value of $5,362,815.15.
- On Monday, April 20th, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $199.37, for a total value of $5,112,046.17.
- On Thursday, March 5th, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $189.50, for a total value of $4,858,969.50.
- On Tuesday, March 3rd, Michelle Zatlyn sold 25,641 shares of Cloudflare stock. The shares were sold at an average price of $174.61, for a total value of $4,477,175.01.
Cloudflare Stock Down 3.8%
NET opened at $209.28 on Thursday. The company has a debt-to-equity ratio of 1.29, a current ratio of 1.96 and a quick ratio of 1.96. The stock has a market capitalization of $73.97 billion, a price-to-earnings ratio of -837.12 and a beta of 1.67. The business has a 50-day moving average of $207.92 and a two-hundred day moving average of $198.70. Cloudflare, Inc. has a 12 month low of $158.83 and a 12 month high of $260.00.
Cloudflare (NYSE:NET - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.23 by $0.02. The company had revenue of $639.76 million during the quarter, compared to analysts' expectations of $620.83 million. Cloudflare had a negative return on equity of 5.65% and a negative net margin of 3.72%.The firm's revenue was up 33.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.16 EPS. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS.
Institutional Investors Weigh In On Cloudflare
Several institutional investors and hedge funds have recently modified their holdings of NET. Empowered Funds LLC boosted its position in shares of Cloudflare by 34.2% in the first quarter. Empowered Funds LLC now owns 6,656 shares of the company's stock worth $750,000 after buying an additional 1,696 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Cloudflare during the second quarter worth $424,000. Cerity Partners LLC lifted its position in shares of Cloudflare by 30.1% during the second quarter. Cerity Partners LLC now owns 27,531 shares of the company's stock worth $5,391,000 after purchasing an additional 6,363 shares in the last quarter. Sei Investments Co. lifted its position in shares of Cloudflare by 40.1% during the second quarter. Sei Investments Co. now owns 329,036 shares of the company's stock worth $64,432,000 after purchasing an additional 94,112 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its position in shares of Cloudflare by 14.6% during the second quarter. The Manufacturers Life Insurance Company now owns 16,461 shares of the company's stock worth $3,224,000 after purchasing an additional 2,093 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company's stock.
Cloudflare News Roundup
Here are the key news stories impacting Cloudflare this week:
- Positive Sentiment: Cloudflare’s expanded partnership with Anthropic to support secure deployment of Claude Managed Agents highlights its growing role in enterprise AI infrastructure, reinforcing the company’s growth story. Cloudflare (NET) Valuation Check After Anthropic Claude Agent Partnership Expands AI Infrastructure Role
- Positive Sentiment: Recent commentary has pointed to strong top-line growth, AI-driven demand, and a path to margin improvement after workforce reductions, which can support the long-term investment case for NET. Cloudflare Is Priced For Perfection
- Neutral Sentiment: Cloudflare has also been getting attention from market-watchers and stock-screening articles, suggesting investor interest remains elevated, though these pieces do not provide a clear new catalyst. Cloudflare, Inc. (NET) is Attracting Investor Attention: Here is What You Should Know
- Negative Sentiment: Insider selling by co-founder Michelle Zatlyn, including two disclosed sales totaling more than 60,000 shares under a 10b5-1 plan, may weigh on sentiment because it can be interpreted as a sign of reduced insider confidence, even if the sales were pre-arranged. SEC Form 4 filing
- Negative Sentiment: Bearish commentary about Cloudflare being “priced for perfection” and criticism of its layoff memo add to concerns that the stock’s valuation may already reflect much of the good news. Cloudflare Is Priced For Perfection
Wall Street Analysts Forecast Growth
A number of brokerages have weighed in on NET. Piper Sandler reiterated an "overweight" rating and issued a $250.00 price target (up from $222.00) on shares of Cloudflare in a report on Friday, May 8th. Jefferies Financial Group initiated coverage on Cloudflare in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. Mizuho cut their price objective on Cloudflare from $255.00 to $235.00 and set an "outperform" rating on the stock in a report on Tuesday, April 14th. BTIG Research restated a "buy" rating and issued a $243.00 price objective on shares of Cloudflare in a report on Friday, May 8th. Finally, Citigroup initiated coverage on Cloudflare in a report on Wednesday, April 15th. They issued a "buy" rating on the stock. Eighteen research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Cloudflare currently has a consensus rating of "Moderate Buy" and an average price target of $236.68.
View Our Latest Report on NET
About Cloudflare
(
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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.
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