SAN FRANCISCO – In a recent move, the Chief Accounting Officer of Cloudflare, Inc. (NYSE:NET), Riley Janel, has sold a significant number of shares in the company. According to the latest filings, Janel offloaded shares worth over $1.6 million.
The transactions, which took place between May 29 and August 16, 2024, involved the sale of Class A Common Stock at varying prices. On May 29, Janel sold 10,611 shares at a weighted average price of $73.1703, with individual transactions ranging from $72.69 to $73.66. Additionally, on the same day, 7,327 shares were sold at an average of $73.9146, with prices between $73.69 and $74.09 per share.
Further sales occurred on August 16, with 2,416 shares going for an average of $81.4228, within a range of $81.00 to $81.94, and 1,079 shares at a weighted average price of $82.1667, with transaction prices spanning from $82.06 to $82.315.
The sales were conducted under a Rule 10b5-1 trading plan, which Janel had adopted on February 28, 2024. This plan allows company insiders to sell shares over a predetermined period to avoid accusations of trading on nonpublic information.
Apart from the sales, the filings also disclosed a transaction coded as "F," where 3,592 shares were withheld on August 15, 2024, to cover tax liabilities associated with the vesting of restricted stock units. This transaction was valued at a total of $295,118, based on the share price of $82.16.
After these transactions, Riley Janel's remaining stake in Cloudflare stands at 80,183 shares, maintaining a significant investment in the company's future.
Investors often watch insider transactions as they may provide insights into executives' confidence in the company's prospects. Cloudflare, known for its web infrastructure and website security services, continues to be a key player in the tech industry, and its stock performance is closely followed by market participants.
The company has not made any official statement regarding these transactions at the time of reporting.
In other recent news, Cloudflare Inc . has been the subject of significant attention due to its robust growth in Q2 2024. The company reported a 30% year-over-year increase in revenue, totaling $401 million, and an impressive $1.6 billion in annualized revenue. An addition of 168 new large customers was also noted, bringing the total to 3,046 and contributing 67% to the company's revenue. Indicators of strong profitability included an operating profit of $57 million and a free cash flow of $38.3 million.
Cloudflare's developer platform, Cloudflare Workers, experienced a 67% increase in developer accounts utilizing Workers AI. The company's net income for the quarter was reported at $69.5 million. Looking ahead, Cloudflare forecasts Q3 revenue to be between $423 million and $424 million, and full year 2024 revenue expected to be between $1,657 million and $1,659 million.
Susquehanna Financial Group adjusted its price target for Cloudflare, increasing it to $85 from the previous $80, while maintaining a Neutral rating on the stock. The adjustment reflects the firm's recognition of strong momentum within the company's operations. Despite the positive outlook on Cloudflare's business activities and market position, Susquehanna's stance remains cautious, with the belief that the risks and rewards of investing in the company are evenly balanced at the current stock price level.
InvestingPro Insights
As Cloudflare's Chief Accounting Officer Riley Janel capitalizes on the company's stock, investors and analysts are keeping a close eye on Cloudflare's financial health and market performance. According to InvestingPro data, Cloudflare has a market capitalization of $28.14 billion, reflecting its significant presence in the tech industry. Despite not being profitable over the last twelve months, Cloudflare boasts a robust gross profit margin of 77.3%, underscoring the company's efficiency in managing its cost of goods sold relative to its revenue, which stood at approximately $1.48 billion.
The company's strong revenue growth of over 31% in the last twelve months, as of Q2 2024, is a testament to its expanding market reach and the growing demand for its services. This is further reinforced by one of the InvestingPro Tips, which highlights that 23 analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on Cloudflare's financial trajectory.
Another InvestingPro Tip worth noting is that Cloudflare is expected to become profitable this year, a significant milestone that could bolster investor confidence. This aligns with the company's impressive return over the last decade, as well as a strong return over the past five years, despite the absence of dividend payouts to shareholders.
For those interested in a deeper analysis, InvestingPro offers additional tips on Cloudflare, providing further insights that could guide investment decisions. There are currently 11 more InvestingPro Tips available for Cloudflare, which can be accessed through the InvestingPro platform.
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