SAN FRANCISCO – Cloudflare, Inc. (NYSE:), a company with a market cap of $38.5 billion that is trading near its 52-week high of $119.42, announced that its CEO and Chairman, Matthew Prince, is executing a series of transactions involving the company's Class A stock. normal over the past few days, according to a recent Securities and Exchange Commission filing.
On December 18, 19 and 20, Prince sold a total of 108,129 shares, at prices ranging from $107.81 to $117.07 per share. The total value of these sales was approximately $17.5 million. InvestingPro Data indicates 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 conducted under a Rule 10b5-1 trading plan, which allows company insiders to prepare a predetermined plan to sell stock. Following these sales, Prince's direct ownership is 172,959 shares of Cloudflare's Class A common stock.
These transactions come as part of a routine financial strategy and do not necessarily indicate any change in Prince's view of the company.
In other recent news, Cloudflare, a cybersecurity company, was the focus of several analysts' upgrades and positive forecasts. Baird maintained its Outperform rating on the company and increased its price target based on expected revenue growth. The company highlighted Cloudflare's strong position in the field of artificial intelligence, which supports its outstanding valuation.
Additionally, Stifel upgraded Cloudflare from Hold to Buy, reflecting confidence in the company's potential to deliver sustainable revenue growth and improved profitability. Morgan Stanley (NYSE:) also upgraded Cloudflare from equal weight to overweight, citing several growth factors that could accelerate revenue throughout 2025.
Citi maintained its Neutral rating on Cloudflare, noting that the company's fund pool deals encourage larger purchases and improve visibility among larger companies. Despite some mixed impacts, Citi analysts believe revenue headwinds from these deals are expected to diminish by 2025.
These are recent developments that investors should take into consideration, as they provide insight into Cloudflare's financial performance and future growth prospects. It is worth noting that the company's revenue growth expectations are 28% for the fiscal year 2024, and it expects continued growth in sales capacity and productivity. Cloudflare's financial performance is also supported by a strong gross margin of 78.8% and net income of $72.6 million.
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