SAN FRANCISCO—Eitel Maria S, a director at Cloudflare, Inc. (NYSE:NET), recently sold shares of the company, according to a filing with the Securities and Exchange Commission. The transactions, which occurred on November 1, 2024, involved the sale of a total of 6,875 shares of Cloudflare's Class A Common Stock. The shares were sold at prices ranging from $87.8066 to $88.6 per share, resulting in a total transaction value of approximately $605,033.
Following these transactions, Eitel Maria S holds 5,927 shares of Cloudflare. The sales were conducted under a Rule 10b5-1 trading plan, which had been adopted on November 30, 2023.
In other recent news, Cloudflare Inc . reported a 30% year-over-year increase in Q2 2024 revenue, hitting $401 million, bolstered by the addition of 168 new large customers. The company also demonstrated strong profitability with an operating profit of $57 million and a free cash flow of $38.3 million. In addition, Cloudflare recently acquired Kivera, a cloud security and compliance platform, aiming to enhance proactive controls for cloud deployments.
On the analyst front, Susquehanna Financial Group adjusted its price target for Cloudflare, increasing it to $85, while Citi reiterated its Neutral rating, citing enthusiasm for long-term revenue growth but a high current valuation. Piper Sandler also maintained its Neutral stance on Bandwidth (NASDAQ:BAND) Inc., following a recent survey that showed an increase in voice as a leading channel for customer service and a rise in marketing campaigns utilizing SMS and email.
These developments highlight recent strides made by both companies. It's important to note that these are recent developments and should be considered in the context of each company's overall performance and market conditions.
InvestingPro Insights
As Cloudflare's director Eitel Maria S reduces their stake, investors might be curious about the company's financial health and market position. According to InvestingPro data, Cloudflare boasts a substantial market capitalization of $29.69 billion, reflecting its significant presence in the cloud services industry. The company's revenue growth remains robust, with a 31.09% increase over the last twelve months as of Q2 2024, indicating strong demand for its services.
One of the standout metrics is Cloudflare's impressive gross profit margin of 77.3%, which aligns with an InvestingPro Tip highlighting the company's "impressive gross profit margins." This suggests that Cloudflare maintains a strong competitive edge in its market segment. Additionally, another InvestingPro Tip notes that "liquid assets exceed short term obligations," pointing to a solid financial position that could provide reassurance to investors despite the recent insider sale.
However, it's worth noting that Cloudflare is currently trading at a high Price / Book multiple of 33.94, which may indicate that the stock is priced at a premium compared to its book value. This valuation metric, along with the company's growth prospects, could be factors for investors to consider when evaluating the stock's potential.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Cloudflare, providing deeper insights into the company's financial health and market position.
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