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In recent transactions, Matthew Prince, the CEO and Board Co-Chair of Cloudflare, Inc. (NYSE:NET), has sold a substantial amount of the company’s Class A common stock. Over the course of three days, from February 25 to February 27, Prince executed a series of sales totaling approximately $22.7 million. The sales come as Cloudflare maintains impressive gross profit margins of 77% and a market capitalization of nearly $50 billion.
The sales involved multiple transactions at prices ranging from $140.94 to $150.29 per share. The stock sales were conducted under a Rule 10b5-1 trading plan, which Prince adopted in November 2023. These plans allow company insiders to establish a predetermined schedule for selling shares, helping to avoid any potential allegations of insider trading. The timing is notable as Cloudflare’s stock has experienced a 7.4% decline over the past week, though it maintains a strong 71% gain over the last six months.
Following these transactions, Prince’s direct ownership of Class A shares has been significantly reduced. The sales were part of a broader series of transactions, including the conversion of Class B common stock into Class A common stock, although those conversions were executed at no additional cost.
Investors keeping an eye on Cloudflare may find these transactions noteworthy, as insider sales can sometimes signal various strategic or personal financial decisions by company executives.
In other recent news, Cloudflare Inc . reported a 27% year-over-year increase in revenue, surpassing expectations from both Mizuho (NYSE:MFG) and Wall Street analysts. This performance led several firms to adjust their price targets for Cloudflare. Citi raised its target to $180, maintaining a Buy rating, while TD Cowen increased its target to $162, also retaining a Buy stance. RBC Capital Markets set a new target of $170, reiterating an Outperform rating, and Piper Sandler updated its target to $153 with a Neutral rating.
Mizuho also raised its target to $160, keeping a Neutral rating, citing Cloudflare’s strong sales productivity and potential in AI inferencing. Analysts have noted Cloudflare’s consistent improvements in deal closure rates and sales productivity, with the company marking its fifth consecutive quarter of double-digit growth in these areas. The company’s strategic focus on enterprise clients and sales capacity expansion is expected to drive further growth.
Cloudflare’s management has indicated the potential for accelerated performance in the latter half of 2025, amid advancements in AI and Secure Access Service Edge (SASE). Despite some concerns over high valuation, analysts remain optimistic about Cloudflare’s long-term growth prospects, with upcoming events like the investor day anticipated to provide further insights into its strategic direction.
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