Cloudflare (NYSE:NET) Director Sells $3,571,800.00 in Stock

Cloudflare, Inc. (NYSE:NET) Director Carl Ledbetter sold 15,000 shares of the company’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $238.12, for a total value of $3,571,800.00. Following the completion of the sale, the director owned 908,073 shares of the company’s stock, valued at approximately $216,230,342.76. The trade was a 1.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Carl Ledbetter also recently made the following trade(s):

• On Friday, May 1st, Carl Ledbetter sold 5,009 shares of Cloudflare stock. The stock was sold at an average price of $215.82, for a total value of $1,081,042.38.
• On Tuesday, April 28th, Carl Ledbetter sold 9,991 shares of Cloudflare stock. The stock was sold at an average price of $215.85, for a total value of $2,156,557.35.
• On Wednesday, March 18th, Carl Ledbetter sold 15,000 shares of Cloudflare stock. The stock was sold at an average price of $227.05, for a total value of $3,405,750.00.

Cloudflare Stock Performance

Shares of NET opened at $257.05 on Friday. The company has a quick ratio of 1.98, a current ratio of 1.98 and a debt-to-equity ratio of 1.35. The business has a 50-day simple moving average of $204.88 and a two-hundred day simple moving average of $200.83. The stock has a market cap of $90.48 billion, a price-to-earnings ratio of -886.35 and a beta of 1.67. Cloudflare, Inc. has a 52 week low of $121.46 and a 52 week high of $260.00.

Cloudflare (NYSE:NET) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.02. Cloudflare had a negative return on equity of 7.24% and a negative net margin of 4.72%.The business had revenue of $639.76 million during the quarter, compared to analysts’ expectations of $620.83 million. During the same quarter in the prior year, the business posted $0.16 earnings per share. The business’s quarterly revenue was up 33.5% on a year-over-year basis. Cloudflare has set its FY 2026 guidance at 1.190-1.200 EPS and its Q2 2026 guidance at 0.270-0.270 EPS. On average, analysts expect that Cloudflare, Inc. will post -0.11 EPS for the current year.

Analyst Ratings Changes

Several analysts recently issued reports on the company. TD Cowen reiterated a “buy” rating on shares of Cloudflare in a research report on Tuesday, January 27th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Cloudflare in a research report on Monday, April 20th. UBS Group reiterated a “neutral” rating and set a $220.00 target price on shares of Cloudflare in a research report on Wednesday, February 11th. BTIG Research increased their target price on Cloudflare from $199.00 to $243.00 and gave the stock a “buy” rating in a research report on Wednesday, February 11th. Finally, Zacks Research upgraded Cloudflare from a “strong sell” rating to a “hold” rating in a research report on Friday, March 13th. Nineteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $232.62.

Cloudflare News Summary

Here are the key news stories impacting Cloudflare this week:

• Positive Sentiment: Q1 beat: Cloudflare reported revenue up ~33% y/y (~$639.8M) and beat consensus on non‑GAAP EPS, showing continued top‑line growth that supports the company’s AI/edge strategy. Cloudflare Announces First Quarter 2026 Financial Results
• Positive Sentiment: Upside to profit guidance: management issued Q2 and fiscal‑year EPS ranges that are above Street EPS consensus, which could imply meaningful near‑term margin improvement if execution holds. Company Press Release / Slide Deck
• Positive Sentiment: Market/industry recognition and ecosystem moves: Cloudflare was named a Leader in Forrester’s edge report and is partnering with Wiz on AI app security — items that support the long‑term thesis around edge + AI infrastructure. Forrester / Market Note Wiz Partnership
• Neutral Sentiment: Analyst views remain mixed: several shops retain buy/hold ratings with average targets roughly near current levels, leaving limited immediate catalyst from upgrades. Barclays Reaffirmation
• Neutral Sentiment: Insider sales were reported (pre‑arranged plans), which some traders note but that activity appears routine rather than a clear red flag. Insider Trades
• Negative Sentiment: Major restructuring: Cloudflare announced layoffs of ~1,100 people (~20% of workforce) to reposition for an “agentic AI era,” raising execution and execution‑risk concerns tied to the transition. Business Insider Layoff Memo WSJ Coverage
• Negative Sentiment: Revenue guide and near‑term outlook: Q2 revenue guidance was essentially flat/slightly below consensus (guidance ~ $664–665M vs. estimates ~ $665M), which, combined with the layoffs, triggered investor concern about demand timing and growth sustainability. Reuters: Guidance & Cuts MSN: Guidance Reaction
• Negative Sentiment: Market reaction: the announcement prompted a sharp after‑hours selloff as investors digested the combination of restructuring, near‑term guidance and high valuation; commentators note momentum/valuation left the name vulnerable even after a good quarter. CNBC: After‑hours Selloff Earnings Discussion / Video

Hedge Funds Weigh In On Cloudflare

Several institutional investors have recently added to or reduced their stakes in NET. HM Payson & Co. purchased a new position in Cloudflare during the 4th quarter valued at approximately $25,000. Physician Wealth Advisors Inc. grew its holdings in Cloudflare by 693.3% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 119 shares of the company’s stock valued at $26,000 after buying an additional 104 shares in the last quarter. Wiser Advisor Group LLC purchased a new position in Cloudflare during the 3rd quarter valued at approximately $26,000. Westside Investment Management Inc. grew its holdings in Cloudflare by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 130 shares of the company’s stock valued at $28,000 after buying an additional 65 shares in the last quarter. Finally, ORG Wealth Partners LLC grew its holdings in Cloudflare by 101.4% during the 3rd quarter. ORG Wealth Partners LLC now owns 139 shares of the company’s stock valued at $30,000 after buying an additional 70 shares in the last quarter. Hedge funds and other institutional investors own 82.68% of the company’s stock.

Cloudflare Company Profile

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.