Thomas Seifert, the Chief Financial Officer of Cloudflare Inc (NYSE:NET), sold 15,000 shares of the company on December 18, 2023, according to a recent SEC filing. The transaction was executed at an average price of $84.86 per share, resulting in a total value of $1,272,900.
Cloudflare Inc is a global cloud services provider that delivers a range of services to businesses of all sizes and in various industries. The company's services include content delivery network (CDN) services, DDoS mitigation, Internet security, and distributed domain name server services. Cloudflare's solutions are designed to enhance the performance and security of websites, APIs, SaaS services, and other properties connected to the Internet.
Over the past year, the insider has sold a total of 510,911 shares of Cloudflare Inc and has not made any purchases of the stock. The recent sale by the insider is part of a broader trend observed over the past year, where there have been no insider buys and 88 insider sells for the company.
On the valuation front, Cloudflare Inc's shares were trading at $84.86 on the day of the insider's transaction. The company's market capitalization stood at $27.811 billion. According to the GF Value, an intrinsic value estimate from GuruFocus, Cloudflare Inc has a price-to-GF-Value ratio of 0.7, indicating that the stock is significantly undervalued. The GF Value of $122.03 suggests a potential upside from the current trading price.
The GF Value is determined by considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's historical returns and growth, and future business performance estimates from Morningstar analysts.
Investors and analysts often monitor insider transactions as they can provide insights into a company's internal perspective on the stock's valuation and future prospects. The recent sale by Cloudflare Inc's CFO may attract attention from the market as stakeholders consider the implications of such insider activity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
