Cloudflare, Inc. (NYSE:NET) President and Chief Operating Officer Michelle Zatlyn recently sold a significant amount of shares in the company, for a total of over $2.9 million. The sales occurred between prices of $76.3986 and $79.8367, according to its latest Form 4 filing with the Securities and Exchange Commission.
Zatlyn, who also serves as a director of Cloudflare, made multiple sales of Class A ordinary shares on various dates. On June 18, 20 and 21, shares were sold at weighted average prices, which varied slightly each day. The transactions were part of a preordained trading plan under Rule 10b5-1, a tool that allows company insiders to sell shares at predetermined times to avoid insider trading problems.
The sales come alongside Zatlyn’s acquisition of shares through the conversion of Class B common shares, which are convertible into Class A shares at any time at a one-to-one ratio. Despite the sizeable sales, the transactions have not had a significant impact on his overall stake in the company, as he still holds a considerable number of shares indirectly through various trusts.
Investors often monitor insider sales for signals about a company’s health and prospects, although such transactions do not always indicate a change in the company’s fundamentals. Cloudflare did not comment on the transactions, and as standard policy, the SEC does not comment on individual filings.
Cloudflare, based in San Francisco, California, is known for its web infrastructure and website security services. The company’s stock performance and insider transactions are closely watched by investors trying to gauge market sentiment and company executives’ confidence in the company’s future.
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