SAN FRANCISCO—Cloudflare, Inc. (NYSE: ), a $38.5 billion market cap trading at a 52-week high of $119.42, has seen its CEO and chairman, Matthew Prince, complete a series of transactions involving the company’s Class A shares. common stock over the past few days, according to recent SEC filings.
On December 18, 19 and 20, Prince sold a total of 108,129 shares, ranging in price from $107.81 to $117.07. The total value of these sales was approximately $17.5 million. Data from InvestingPro shows that the company maintains impressive fundamentals with a gross profit margin of 77.5% and strong revenue growth of 30% year over year.
The transactions were made under a Rule 10b5-1 trading plan, which allows company insiders to create a predetermined plan to sell shares. Following these sales, Prince’s direct ownership is 172,959 shares of Cloudflare Class A common stock.
These transactions come as part of a routine financial strategy and do not necessarily indicate any change in Prince’s outlook on the company.
In other recent news, Cloudflare, the cybersecurity vendor, is the focus of several analyst updates and positive forecasts. Baird maintained the company’s Outperform rating and raised its price target based on expected earnings growth. The firm highlighted Cloudflare’s strong position in artificial intelligence, which supports its premium valuation.
In addition, Stifel upgraded Cloudflare from Hold to Buy, reflecting confidence in the company’s potential for sustained growth and improved profitability. Morgan Stanley (NYSE: ) also upgraded Cloudflare from equal weight to overweight, citing several growth factors that could accelerate earnings through 2025.
Citi maintained a neutral rating on Cloudflare, noting that the company’s fund-of-funds deals are driving significant acquisitions and improving visibility among large enterprises. Despite some mixed effects, Citi analysts believe that revenue resistance from these deals is likely to ease by 2025.
These are recent developments that investors should consider as they provide insight into Cloudflare’s financial performance and future growth prospects. Notably, the company’s revenue growth forecast for 2024 is 28%, and it assumes continued growth in sales capacity and productivity. Cloudflare’s financial performance is further supported by a strong gross margin of 78.8% and net income of $72.6 million.
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