Cloudflare chief legal officer sells shares worth $1.01 million

Douglas James Kramer, Chief Legal Officer of Cloudflare, Inc. (NYSE:NET), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Kramer sold 8,000 shares of Class A Common Stock on January 2, 2025, at prices ranging from $111.6354 to $113.591 per share. The total value of these transactions amounted to approximately $1,012,072. The sale comes as Cloudflare's stock trades near its 52-week high of $119.42, having delivered an impressive 50.41% return over the past year. InvestingPro analysis indicates the stock is currently trading above its Fair Value.

Following these sales, Kramer now holds 175,688 shares of Cloudflare's Class A Common Stock. The transactions were executed under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a schedule for selling shares to avoid allegations of insider trading.

In addition to the sales, Kramer also exercised stock options for 9,000 shares of Class B Common Stock, which are convertible into Class A Common Stock on a one-to-one basis. These options were exercised at a price of $2.04 per share, although no monetary value was assigned to these transactions in the filing.

This activity comes as Cloudflare continues to navigate the evolving landscape of internet security and performance services, maintaining its position as a significant player in the technology sector. The company demonstrates strong operational efficiency with a 77.53% gross profit margin and impressive revenue growth of 30.04%. For deeper insights into Cloudflare's performance metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Cloudflare Inc (NYSE:NET). has seen significant developments. RBC Capital Markets analyst Matt Hedberg has maintained an Outperform rating while increasing the price target for the company to $123. Hedberg's optimism is rooted in Cloudflare's robust gross margins and year-over-year revenue growth. The company's innovative network model, which supports a cost-effective free service tier, is particularly noteworthy.

Goldman Sachs has upgraded Cloudflare's stock from Sell to Buy, citing a reorganization of its sales force and new leadership hires as key factors. The company's progress in the network security sector and its efforts to penetrate the enterprise market have contributed to this improved outlook.

Baird has maintained its Outperform rating on Cloudflare, highlighting its position as a fast-growing cybersecurity vendor. The firm believes Cloudflare's premium valuation is warranted due to its strong standing in the field of artificial intelligence.

Citi has maintained its Neutral rating on Cloudflare, noting that the company's Pool-of-Funds deals are encouraging significant purchases and improving visibility among large enterprises. Despite some mixed effects, Citi analysts believe that revenue headwinds from these deals are expected to diminish by 2025.

Stifel has upgraded Cloudflare from Hold to Buy, reflecting confidence in the company's potential for sustained top-line growth and improving profitability. Stifel suggests that the premium is justified by the quality of the company.

Cloudflare reported a 28% year-over-year increase in Q3 revenue, reaching $430.1 million, and anticipates continued growth in sales capacity and productivity. These are recent developments that investors should take note of.

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