SAN FRANCISCO—Douglas James Kramer, Chief Legal Officer at Cloudflare, Inc. (NYSE:NET), sold 3,000 shares of the company's Class A common stock on November 1. The shares were sold at a price of $88.60 each, totaling $265,800.
This transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, which was adopted by Kramer on November 29, 2023. Following this sale, Kramer holds 185,386 shares of Cloudflare's Class A common stock.
Additionally, Kramer exercised options for 3,000 shares of Class B common stock, which are convertible into Class A shares on a one-to-one basis with no expiration date. These transactions reflect Kramer's ongoing management of his equity holdings in the company.
In other recent news, Cloudflare reported a 30% year-over-year increase in Q2 2024 revenue, reaching $401 million, and an operating profit of $57 million. The company's growth is attributed to the addition of 168 new large customers, contributing 67% to the revenue. Cloudflare also recently acquired Kivera, a cloud security and compliance platform, aiming to reduce security risks in cloud deployments. On the analyst front, both Susquehanna Financial Group and Citi maintained a Neutral rating on Cloudflare. Susquehanna raised its price target to $85, while Citi cited enthusiasm for long-term revenue growth but a high current valuation.
Bandwidth (NASDAQ:BAND) Inc. was also highlighted as Piper Sandler maintained its Neutral stance on the company. The firm's position follows a recent teen survey revealing a rise in voice and SMS/email marketing campaigns, potentially benefiting companies like Bandwidth. These are among the recent developments in the tech industry.
InvestingPro Insights
Cloudflare's recent insider transaction occurs against a backdrop of strong financial performance and market positioning. According to InvestingPro data, the company boasts a market capitalization of $29.69 billion and has demonstrated impressive revenue growth, with a 31.09% increase over the last twelve months as of Q2 2024. This growth aligns with an InvestingPro Tip highlighting Cloudflare's "impressive gross profit margins," which stand at a robust 77.3% for the same period.
Despite the company not being profitable over the last twelve months, analysts predict that Cloudflare will turn a profit this year, as noted in another InvestingPro Tip. This optimism is reflected in the stock's performance, with a one-year price total return of 35.9% as of the latest data.
Investors should note that Cloudflare is trading at a high revenue valuation multiple, which could indicate market confidence in its future growth prospects. The company's strong financial position is further underscored by the fact that its liquid assets exceed short-term obligations, suggesting a solid foundation for continued expansion.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Cloudflare, providing deeper insights into the company's financial health and market position.
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