Form 4: Cloudflare CLO Executes Planned Stock Sale

Cloudflare Chief Legal Officer Alissa Starzak exercised options and sold 16,243 shares of Class A Common Stock under a Rule 10b5-1 trading plan.

Summary

• Chief Legal Officer Alissa Starzak exercised options to acquire 10,001 shares of Class A Common Stock at a price of $77.70 per share.
• Following the exercise, the reporting person sold a total of 16,243 shares of Class A Common Stock.
• The sales occurred in multiple transactions on May 28, 2026, at weighted average prices ranging from $213.30 to $218.13 per share.
• The transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on February 26, 2026.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the transactions were conducted under a pre-planned 10b5-1 arrangement, which is typical for executive compensation management.

Positives

• The transaction demonstrates the exercise of vested equity compensation, reflecting the executive's participation in the company's long-term incentive program.

Negatives

• The sale results in a reduction of the executive's direct beneficial ownership of company stock.

Risks

• The executive's holdings are subject to market price fluctuations of Cloudflare's Class A Common Stock.

Future Outlook

The filing does not provide forward-looking financial guidance, focusing instead on historical insider transaction activity.

Industry Context

StockSavvy.ai notes that routine insider selling under pre-established 10b5-1 plans is a standard practice for corporate executives to manage personal liquidity and is generally viewed as neutral by the market.

Comparison to Industry Standards

• The use of Rule 10b5-1 trading plans is the industry standard for executives to avoid potential conflicts of interest or accusations of insider trading.

Stakeholder Impact

• Minimal impact on shareholders as the sale was pre-planned and executed via a 10b5-1 trading plan.

Next Steps

• Remaining shares subject to the option will vest quarterly beginning August 15, 2026.

Key Dates

Keywords

Cloudflare, NET, Insider Trading, Form 4, Equity Compensation, Rule 10b5-1