Maria Eitel, a director at Cloudflare (NET), recently picked up 15,000 shares. The buy increased her stake by 226 percent, and came to a total price just over $941,000.
This marks the first insider buy at the company in the past three years. Company insiders, largely C-suite executives but also some directors, have been sellers of shares regularly over the past three years.
Overall, company insiders own about 6.2 percent of shares.
The software infrastructure company, best known for cloud-based security solutions, has seen shares decline about 20 percent in the past year, and are down a whopping 75 percent from their 52-week highs. That’s likely because the company has reported a loss in the past year, even as revenue has risen 54 percent.
Action to take: Shares look interesting here, given the company’s industry position and potential for future profitability. Chances are the stock can rise back to its hold highs in time, particularly if it can start earning a profit in the coming year. However, the company is a long way from paying a dividend.
For traders, the August $75 calls, last going for about $5.40, offer the chance for strong returns in the coming months, provided shares rebound. Traders should consider taking mid-double-digit profits quickly given the current market volatility.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.