Michelle Zatlyn, President and COO of Cloudflare, Inc. (NYSE:NET), recently sold a significant portion of her shares in the company. According to a filing with the Securities and Exchange Commission, Zatlyn executed multiple transactions on January 22, 23, and 24, 2025, totaling approximately $9.41 million. The sales come as Cloudflare, now valued at $42.8 billion, has seen its stock surge with a 53% return over the past year, trading near its 52-week high of $125.71.
The sales involved several batches of Class A Common Stock, with prices ranging from $120.393 to $124.5874 per share. After these transactions, Zatlyn's direct ownership of Cloudflare shares saw a reduction, reflecting her strategic financial decisions within the company. According to InvestingPro analysis, Cloudflare maintains strong fundamentals with an impressive 77.5% gross profit margin and healthy liquidity ratio of 3.37, though current prices suggest the stock is trading above its Fair Value.
These sales were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined plan for trading stock to avoid potential conflicts of interest.
Cloudflare, headquartered in San Francisco, is known for its services in prepackaged software, and Zatlyn's role as President and COO positions her as a key executive in the company's operations and strategic direction.
In other recent news, Cloudflare Inc . has experienced significant developments. Cloudflare's stock rating was upgraded to Buy by both Citi and Goldman Sachs, with Citi significantly increasing the price target to $145, reflecting a positive outlook on the company's future earnings potential. Analysts anticipate revenue growth and a profitable scale by the end of 2028. RBC Capital Markets and Baird have also maintained their Outperform ratings.
Cloudflare's revenue has seen a 30% year-over-year growth in the past year, and a 28% year-over-year increase in Q3, reaching $430.1 million. The company's customer base has also seen a significant rise, now standing at 3,265. The company's robust standing in the field of artificial intelligence and improved go-to-market execution has been highlighted as key growth factors.
Analysts from Goldman Sachs and Citi have expressed confidence in the company's ability to sustain a 27-30% revenue growth rate, envisioning a clear path towards achieving approximately $5 billion in revenue by 2028. These are recent developments that investors should pay attention to.
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