Thomas J. Seifert, Chief Financial Officer of Cloudflare Inc . (NYSE:NET), recently sold shares of the company valued at over $1.36 million. The transactions took place on October 18, 2024, and involved the sale of 13,358 shares at an average price of $90.8317 and an additional 1,642 shares at an average price of $91.2475.
Following these sales, Seifert holds 281,403 shares of Cloudflare, reflecting a decrease from his previous holdings. The sales were conducted under a pre-established trading plan, as per Rule 10b5-1, which allows insiders to set up a predetermined plan to sell stocks.
In addition to these sales, Seifert executed options for 15,000 shares, which were acquired at a conversion price of $2.04 each. These transactions are part of the regular financial activities of the company's executives and provide insights into their investment strategies and confidence in the company.
In other recent news, Cloudflare Inc. has demonstrated considerable financial growth with its Q2 2024 results, reporting a 30% year-over-year increase in revenue to $401 million. The company's operating profit stood at $57 million, and free cash flow at $38.3 million. These results were largely driven by the addition of 168 new large customers, making the total 3,046, contributing 67% to the revenue.
Cloudflare also recently acquired Kivera, a cloud security and compliance platform, aiming to enhance the Cloudflare One platform and reduce security risks. Analyst firms Susquehanna Financial Group and Citi have both maintained a Neutral rating on Cloudflare. Susquehanna has adjusted its price target for Cloudflare to $85 from $80, while Citi's price target remains at $90.
Meanwhile, Bandwidth (NASDAQ:BAND) Inc. maintained a Neutral rating from Piper Sandler, following a teen survey conducted by the firm. The survey showed an increase in voice as the leading channel for customer service, potentially benefiting companies like Bandwidth Inc.
These are recent developments, providing investors with insights into the companies' performance and strategic moves. It's important to note that these updates do not serve as a comprehensive view of the companies but offer a snapshot of their recent activities.
InvestingPro Insights
Cloudflare's recent stock performance and financial metrics provide additional context to CFO Thomas J. Seifert's recent stock transactions. According to InvestingPro data, Cloudflare's stock has shown a strong return of 52.91% over the past year, significantly outperforming the broader market. This robust performance aligns with the company's impressive revenue growth of 31.09% in the last twelve months as of Q2 2024.
Despite the recent insider selling, there are several positive indicators for Cloudflare. An InvestingPro Tip highlights that the company boasts impressive gross profit margins, which is reflected in the data showing a gross profit margin of 77.3% for the last twelve months. This strong profitability at the gross level suggests efficient management of direct costs.
Another InvestingPro Tip notes that Cloudflare operates with a moderate level of debt, which could provide financial flexibility for future growth initiatives. This conservative approach to leverage may be reassuring to investors, especially in the current economic climate.
It's worth noting that while Cloudflare has shown strong top-line growth and market performance, the company is not yet profitable over the last twelve months, as indicated by another InvestingPro Tip. However, analysts predict that the company will be profitable this year, which could be a significant milestone for Cloudflare and its investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Cloudflare, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.