Cloudflare, Inc. (NYSE:NET) director Carl Ledbetter has sold 8,029 shares of the company's Class A common stock, according to the latest SEC filings. The transactions, which took place on April 17, 2024, totaled over $725,000, with the shares being sold at a weighted average price of $90.3935.
Investors tracking insider activity may find this sale noteworthy, as it provides a glimpse into the actions of Cloudflare's high-level personnel. The shares were sold under a Rule 10b5-1 trading plan, which was adopted by Ledbetter on February 28, 2023. Such plans allow company insiders to establish pre-arranged stock trading plans for selling stocks at a predetermined time.
The sale was executed in multiple transactions with prices ranging from $90.11 to $90.795. This range indicates a level of consistency in the stock's price around the time of sale. Following the sale, Ledbetter still holds a significant amount of Cloudflare stock, with 1,214,830 shares remaining in his possession. These shares are held through the Carl S. Ledbetter Trust, where he serves as a trustee.
The transaction was signed off by Lindsey Cochran, acting under power of attorney, and was filed with the SEC on April 18, 2024. Cloudflare has not made any official statement regarding this transaction, and it remains an individual financial decision by the director.
For investors, insider sales can serve as one of many indicators to consider when evaluating a company's stock. Cloudflare, which specializes in internet security services and content delivery networks, continues to be a significant player in the tech industry.
The SEC filing provides transparency into the dealings of company insiders, ensuring that the public has access to critical information that can impact investment decisions. As always, investors are encouraged to look at the broader picture and consider various factors when assessing the value and potential of their investments.
InvestingPro Insights
Following the recent insider selling at Cloudflare, Inc. (NYSE:NET), investors may be curious about the company's financial health and market performance. According to InvestingPro data, Cloudflare boasts a market capitalization of $29.28 billion and has exhibited a significant revenue growth of almost 33% over the last twelve months as of Q4 2023. This growth is a testament to the company's expanding influence in the internet security and content delivery network sectors.
With a gross profit margin of 76.32%, Cloudflare demonstrates an impressive ability to retain a substantial portion of its revenue as gross profit. This is a critical metric for investors, as it indicates the company's efficiency in managing its cost of goods sold and its potential for profitability.
An InvestingPro Tip highlights that analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's financial performance. Furthermore, while the stock has experienced a notable price decline over the past week, with a 1-week price total return of -8.41%, the larger picture shows a robust 6-month price total return of 40.96%, indicating significant investor confidence over a more extended period.
For those looking to delve deeper into Cloudflare's prospects, InvestingPro offers additional insights. There are more InvestingPro Tips available, revealing that the company operates with a moderate level of debt and has liquid assets that exceed its short-term obligations. This information could be crucial for investors assessing the company's financial stability.
Investors interested in gaining a comprehensive understanding of Cloudflare's financial metrics and future potential can find more detailed analysis on InvestingPro, with the option to use coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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