On September 18, 2023, Thomas Seifert, the Chief Financial Officer of Cloudflare Inc (NYSE:NET), sold 15,000 shares of the company. This move is part of a larger trend of insider selling at Cloudflare Inc, as we will explore in this article.
Thomas Seifert joined Cloudflare Inc as CFO in 2016. He has a wealth of experience in the tech industry, having previously served as CFO at Symantec and Advanced Micro Devices. His role at Cloudflare involves overseeing the company’s financial operations, including financial planning, accounting, tax, treasury, and investor relations.
Cloudflare Inc is a web infrastructure and website security company. The company provides content delivery network services, DDoS mitigation, Internet security, and distributed domain name server services. Cloudflare’s services protect websites from various attacks and accelerate web content delivery.
Over the past year, Thomas Seifert has sold a total of 479,010 shares and purchased 0 shares. This recent sale of 15,000 shares is part of a larger trend of insider selling at Cloudflare Inc. Over the past year, there have been 67 insider sells and 0 insider buys.
The insider’s selling activities have had a noticeable impact on the stock price. On the day of the insider’s recent sale, shares of Cloudflare Inc were trading for $61.75 apiece, giving the stock a market cap of $20.11 billion.
Despite the insider’s selling activities, Cloudflare Inc appears to be significantly undervalued based on its GF Value. With a price of $61.75 and a GuruFocus Value of $142.41, Cloudflare Inc has a price-to-GF-Value ratio of 0.43.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is 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.
In conclusion, while the insider’s selling activities may raise some concerns, the stock’s current valuation suggests that Cloudflare Inc may still be a good investment opportunity. Investors should keep a close eye on the company’s financial performance and the insider’s future trading activities.
This article first appeared on GuruFocus.