Cloudflare, Inc. (NYSE:NET) director Maria S. Eitel has sold a total of 6,875 shares of the company's Class A Common Stock, according to a recent SEC filing. The transactions, which occurred on May 1, 2024, were executed at a price of $88.12 per share, resulting in a total sale value of approximately $605,825.
The sale was conducted under a Rule 10b5-1 trading plan, which Eitel had adopted on November 30, 2023. This type of trading plan allows corporate insiders to sell a predetermined number of shares at a predetermined time, offering a defense against potential insider trading accusations by pre-establishing trades at times when the insider may not be aware of material non-public information.
Following the transaction, Eitel's remaining ownership in Cloudflare stands at 16,638 shares of Class A Common Stock. The company, known for its services in prepackaged software, is headquartered in San Francisco, California, and has been a key player in the tech industry.
Cloudflare's stock, traded under the ticker symbol NYSE:NET, has been of interest to investors tracking insider activity, as such sales can provide valuable insights into an insider's view of the company's current valuation and future prospects.
The filing was signed on behalf of Eitel by Lindsey Cochran, by power of attorney, on May 2, 2024.
InvestingPro Insights
Cloudflare, Inc. has been making waves in the tech industry, and recent market data from InvestingPro provides a deeper look into the company's financial health and stock performance. A standout metric is Cloudflare's gross profit margin, which, over the last twelve months as of Q4 2023, stood at a robust 76.32%. This impressive figure is indicative of the company's ability to maintain profitability amidst the costs associated with providing its services.
Another key point for investors is the company's revenue growth, which was reported at 32.97% for the same period. This growth rate demonstrates Cloudflare's expanding market presence and its success in capitalizing on the increasing demand for cloud-based solutions.
However, it's worth noting that Cloudflare is currently trading at a high Price / Book multiple of 39.6, suggesting a premium valuation compared to its book value. This could be reflective of investor optimism about the company's future growth prospects.
InvestingPro Tips also highlight that while Cloudflare has not been profitable over the last twelve months, analysts are predicting that the company will turn a profit this year. Additionally, Cloudflare's liquid assets exceed its short-term obligations, indicating a solid financial position for meeting its immediate liabilities.
For those looking to delve further into Cloudflare's performance and potential, InvestingPro offers several additional tips. Presently, there are 11 more InvestingPro Tips available, which could provide valuable insights for informed investment decisions. To explore these tips and more in-depth analyses, investors can visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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