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In a recent series of stock transactions, Cloudflare, Inc. (NYSE:NET) CEO and Board Co-Chair Matthew Prince sold shares worth approximately $18.2 million. The transactions, which occurred over several days, involved the sale of Class A common stock at prices ranging from $112.61 to $118.47 per share. The sales come as Cloudflare, now valued at over $40 billion, has seen its stock surge roughly 42% in the past six months, according to InvestingPro data.
On March 17, Prince sold 52,384 shares, followed by additional sales on March 18 and March 19. The sales were conducted under a pre-arranged Rule 10b5-1 trading plan adopted in November 2023. Despite these sales, Prince continues to hold a significant number of shares in the company. The company maintains strong financial health with a current ratio of 2.86 and impressive revenue growth of nearly 29% year-over-year.
These transactions were part of a routine financial strategy and were disclosed in a Form 4 filing with the Securities and Exchange Commission. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Discover 13 additional exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, Cloudflare Inc . has introduced Cloudflare for AI, a suite of security tools designed to protect artificial intelligence applications from threats such as data leakage and unauthorized access. This launch underscores Cloudflare’s commitment to supporting AI adoption with a focus on security. Furthermore, analysts from JMP have maintained their Market Outperform rating for Cloudflare, with a price target of $180, following the company’s Investor Day event. During this event, Cloudflare’s leadership highlighted their innovative strategies in AI and developer platforms, aiming for a total addressable market of $231 billion by 2028.
TD Cowen also reaffirmed its positive outlook on Cloudflare, keeping a Buy rating and a $162 price target, citing the company’s strong product development and market strategy. RBC Capital Markets adjusted its price target for Cloudflare to $148 from $170 but maintained an Outperform rating, emphasizing the company’s strong management and ambitious growth plans. Truist Securities continues to support Cloudflare with a Buy rating and a $175 price target, noting the company’s strategic initiatives and potential for growth among large customers and developers.
Cloudflare’s goal to achieve $5 billion in annual recurring revenue by 2028 remains a focal point for analysts, with expectations of a significant compound annual growth rate. The company’s strategic focus on expanding its enterprise presence and leveraging AI for new opportunities is seen as a key driver for future growth. These recent developments reflect Cloudflare’s ongoing efforts to enhance its market position and capitalize on emerging opportunities.
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