On October 3, 2023, Thomas Seifert, the Chief Financial Officer of Cloudflare Inc (NET, Financial), sold 15,000 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 494,010 shares over the past year and has not made any purchases.
Thomas Seifert is a key figure at Cloudflare Inc, a company that provides a cloud platform that delivers a range of network services to businesses worldwide. These services include various security products, performance solutions, and reliability services. As the CFO, Seifert plays a crucial role in the company's financial strategy and operations.
The insider's recent sell has raised some eyebrows, especially considering the overall insider transaction history for Cloudflare Inc. Over the past year, there have been 71 insider sells and 0 insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Cloudflare Inc were trading for $59.23 apiece, giving the stock a market cap of $19.8 billion. Despite the insider's sell, the stock appears to be significantly undervalued based on its GuruFocus Value of $143.88, as shown in the following image:
The price-to-GF-Value ratio of 0.41 suggests that the stock is significantly undervalued. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
The insider's sell, coupled with the stock's undervalued status, may suggest that the insider believes the stock's current price does not reflect its intrinsic value. However, it's also possible that the insider's sell is a personal decision unrelated to the company's financial health or future prospects.
As always, potential investors should conduct their own research and consider multiple factors before making investment decisions. While insider transactions can provide valuable insights, they are just one piece of the puzzle.
