Cloudflare CFO Seifert sells 26,331 shares for $5.2mln on 2025-07-21.

Cloudflare, Inc. announced that Chief Financial Officer, Thomas J. Seifert, has executed a series of transactions involving the sale of shares on July 21, 2025. Specifically, Seifert has sold 500 shares at a price of $196.53 per share, 6,000 shares at $197.87 per share, 3,300 shares at $198.72 per share, 200 shares at $200.16 per share, 8,689 shares at $200.18 per share, 8,343 shares at $200.18 per share, 9,000 shares at $200.16 per share, and 8,238 shares at $200.18 per share. These transactions were executed on July 21, 2025.

On July 21, 2025, Cloudflare, Inc. (NET) announced that Chief Financial Officer (CFO) Thomas J. Seifert has executed a series of transactions involving the sale of shares. The transactions, reported in a Form 4 filing, include the sale of 500 shares at $196.53 per share, 6,000 shares at $197.87 per share, 3,300 shares at $198.72 per share, 200 shares at $200.16 per share, 8,689 shares at $200.18 per share, 8,343 shares at $200.18 per share, 9,000 shares at $200.16 per share, and 8,238 shares at $200.18 per share.

The transactions were executed under an existing Rule 10b5-1 trading plan, which is designed to reduce information asymmetry and potential insider trading concerns. The Rule 10b5-1 plan allows insiders to pre-define trading plans to avoid the appearance of insider trading or to sell shares in a manner that does not reveal non-public information.

The total value of the shares sold by Seifert on July 21, 2025, is approximately $1.71 million. This amount represents a small fraction of the total shares outstanding, with the sale of 8,689 shares accounting for approximately 0.0028% of the 310.6 million shares outstanding. This de-minimis size indicates a minimal dilution impact on the company.

While the sales are part of a pre-planned trading strategy, they may still raise concerns among some investors. The CFO has disposed of approximately 70,000 shares in the last four months, which could be seen as a negative signal by some investors despite the plan structure. However, the volume sold to date is far below thresholds that would trigger heightened board or market scrutiny, indicating that the event is not impactful to shareholders' governance considerations.

In conclusion, the transactions executed by Thomas J. Seifert on July 21, 2025, are part of a pre-defined trading plan and represent a small portion of the total shares outstanding. The sales are unlikely to have a significant impact on the company's liquidity or ownership structure.

References:
[1] https://www.stocktitan.net/sec-filings/NET/144-cloudflare-inc-class-a-common-stock-par-value-0-001-per-share-sec-2807108ede95.html
[2] https://www.streetinsider.com/SEC+Filings/Form+4+Cloudflare%2C+Inc.+For%3A+Jul+21+Filed+by%3A+SEIFERT+THOMAS+J/25082856.html