Cloudflare, Inc. (NYSE:NET) director Carl Ledbetter has recently sold a significant portion of his holdings in the company. On May 15, 2024, Ledbetter sold 7,990 shares of Cloudflare's Class A Common Stock at a weighted average price of $74.5639, totaling approximately $595,765.
The transactions were carried out in multiple sales with prices ranging between $74.20 and $74.79. Following this sale, Ledbetter still owns 1,158,658 shares of Cloudflare's stock, indicating a continued investment in the company's future.
It is noted that the sales were conducted in accordance with a pre-arranged Rule 10b5-1 trading plan, which was adopted by Ledbetter on February 28, 2023. Such plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
Additionally, the shares sold by Ledbetter are held by the Carl S. Ledbetter Trust, where he serves as a trustee, demonstrating an indirect ownership structure for these transactions.
The sale was officially signed by Lindsey Cochran, acting by power of attorney, as per the document filed with the Securities and Exchange Commission.
Investors and interested parties who wish to obtain further details about the specific prices at which the shares were sold are entitled to request this information from Cloudflare or directly from Ledbetter.
Cloudflare, headquartered in San Francisco, California, operates within the prepackaged software industry and continues to be a significant player in the tech sector. This recent stock sale by a high-ranking insider may be of interest to current and potential shareholders as they assess their own investment in the company.
InvestingPro Insights
Amidst the recent insider selling activity, Cloudflare, Inc. (NYSE:NET) continues to navigate the competitive tech landscape with noteworthy financial metrics. According to InvestingPro data, Cloudflare boasts a robust gross profit margin of 76.78% for the last twelve months as of Q1 2024, underlining the company's ability to maintain profitability in its core operations. This is complemented by a significant year-over-year revenue growth of 31.51%, which suggests that the company's products and services are increasingly in demand.
However, the company's stock has experienced volatility, with a 1-month price total return of -18.44% as of the latest data. This could be reflective of broader market trends or investor sentiment regarding the company's future prospects. Notably, Cloudflare's market capitalization stands at $25.54B, and the stock is currently trading at a high Price / Book multiple of 32.26, which may indicate a premium valuation relative to its book value.
InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, suggesting optimism about Cloudflare's financial performance. Additionally, while the stock has faced a downtrend over the last month, Cloudflare's liquid assets exceed its short-term obligations, indicating financial stability.
For investors seeking a deeper analysis, there are 16 additional InvestingPro Tips available for Cloudflare, which can be accessed at Investing.com/pro/NET. These tips provide valuable insights that could help investors make informed decisions. To enhance your investing strategy with these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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