Cloudflare’s president and COO sells shares worth $8.68 million
In recent transactions reported by Cloudflare, Inc. (NYSE:), Michelle Zatlyn, the company’s President and COO, sold a significant number of shares over three consecutive days, resulting in a total value of approximately $8.68 million. These sales occurred between December 10 and December 12, 2024, with prices ranging from $112.0162 to $113.6421 per share. According to InvestingPro data, the stock is trading near its 52-week high of $116, having delivered an impressive 56% return over the past six months.
Zatlyn’s transactions involved the sale of Class A Common Stock in multiple batches. On December 10, she sold 20,512 shares, followed by transactions of 20,512 shares on December 11 and 12, respectively. These sales were executed under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks. The company maintains strong fundamentals with a robust gross profit margin of 77.5% and healthy liquidity, as indicated by a current ratio of 3.37.
The transactions reflect Zatlyn’s continued involvement in managing her equity holdings in Cloudflare, a leading provider of web performance and security services. Despite these sales, Zatlyn maintains a substantial stake in the company, with shares held in various trusts under her management. With a market capitalization of $39.5 billion and revenue growth of 30%, Cloudflare shows strong momentum. For detailed analysis and 14 additional key insights, visit InvestingPro, where you’ll find comprehensive research reports and Fair Value assessments.
In other recent news, Cloudflare, Inc. has been experiencing robust financial growth, with Morgan Stanley (NYSE:) upgrading the company’s stock rating citing potential acceleration in revenue through 2025. The firm has changed its rating from Equal-weight to Overweight and increased the price target to $130.00. This follows Cloudflare’s strong third-quarter earnings report, which showed a 28% year-over-year increase in revenue, reaching $430.1 million. The company’s customer base also grew by 28% from the previous year, now standing at 3,265.
Cloudflare’s growth has been bolstered by strategic involvement in cybersecurity efforts and a focus on enterprise sales, leading to significant contracts such as a $7 million deal with an AI company and a $4.2 million contract with a Fortune 100 tech firm. Morgan Stanley’s analysis suggests that Cloudflare could maintain a compound annual growth rate of 28% in revenue from 2023 through 2028.
Looking forward, Cloudflare projects a 25% year-over-year increase in revenue for Q4 2023 and expects full-year 2024 revenue to be between $1.661 billion and $1.662 billion. These recent developments reflect the company’s continued growth trajectory and positive financial performance.
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