Form 4: Cloudflare Director Carl Ledbetter Sells Shares Under 10b5-1 Trading Plan

Carl Ledbetter, a director at Cloudflare, sold shares of Class A Common Stock on June 20, 2024, under a pre-arranged Rule 10b5-1 trading plan.

Summary

• On June 20, 2024, Carl Ledbetter, a director of Cloudflare, sold shares of Class A Common Stock.
• The sales were executed under a Rule 10b5-1 trading plan adopted on February 28, 2023.
• Multiple transactions occurred at varying prices, with weighted average prices reported for each set of transactions.
• Ledbetter sold 5,434 shares at an average price of $77.976, 3,927 shares at an average price of $79.1741, and 654 shares at an average price of $79.7344.
• Following these transactions, Ledbetter directly owns 18,427 shares and indirectly owns 1,092,394 shares through the Carl S. Ledbetter Trust dated February 14, 2020, where he serves as a trustee.

Sentiment

Score: 5

Explanation: The document is a standard SEC Form 4 filing, indicating insider trading activity. The sentiment is neutral as it simply reports transactions.

Industry Context

Sales by company insiders are a common occurrence and are often pre-planned to avoid accusations of insider trading. The use of a 10b5-1 trading plan allows insiders to sell shares at predetermined times and prices.

Stakeholder Impact

• The sale of shares by a director could be perceived negatively by some shareholders, but the existence of a 10b5-1 plan mitigates this concern.

Key Dates