Insider Selling: Netflix (NASDAQ:NFLX) CEO Sells 105,850 Shares

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 105,850 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total value of $7,730,225.50. Following the completion of the sale, the chief executive officer directly owned 206,266 shares of the company’s stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Stock Performance

Shares of NFLX stock traded up $0.24 during trading on Tuesday, reaching $73.57. 42,771,388 shares of the company’s stock were exchanged, compared to its average volume of 45,836,363. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $306.34 billion, a PE ratio of 23.16, a PEG ratio of 0.90 and a beta of 1.52. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71. The firm’s fifty day moving average price is $76.36 and its 200-day moving average price is $85.26.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter in the prior year, the business earned $0.72 EPS. The firm’s revenue for the quarter was up 13.4% on a year-over-year basis. As a group, sell-side analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Analysts Set New Price Targets

NFLX has been the subject of several research analyst reports. Sanford C. Bernstein set a $95.00 target price on shares of Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Needham & Company LLC reissued a “buy” rating on shares of Netflix in a report on Friday, April 17th. Moffett Nathanson cut their price objective on shares of Netflix from $120.00 to $115.00 and set a “buy” rating for the company in a research report on Wednesday, June 17th. China Intl Cap upgraded Netflix to a “strong-buy” rating in a report on Tuesday, July 21st. Finally, Wells Fargo & Company set a $80.00 target price on Netflix and gave the company an “equal weight” rating in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $103.48.

Hedge Funds Weigh In On Netflix

A number of hedge funds have recently bought and sold shares of NFLX. Turning Point Benefit Group Inc. boosted its holdings in Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC bought a new position in shares of Netflix during the third quarter worth approximately $25,000. Cornerstone Financial Management LLC acquired a new stake in shares of Netflix in the fourth quarter valued at approximately $26,000. Atlas Capital Advisors Inc. acquired a new stake in shares of Netflix in the fourth quarter valued at approximately $26,000. Finally, Jessup Wealth Management Inc bought a new stake in shares of Netflix in the fourth quarter valued at approximately $27,000. 80.93% of the stock is owned by institutional investors.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s cloud-gaming initiative is showing strong early traction: monthly players have increased 11-fold since October, potentially creating a new engagement and growth engine beyond traditional streaming and mobile games. Can NFLX Stock Compound Its Way Higher?
• Positive Sentiment: Some analysts and investors view NFLX as increasingly attractive after its recent decline, citing Netflix’s scale, brand strength, content library and competitive moat. Longer-term shareholder returns also remain positive despite recent weakness. NFLX Stock Looks Attractive Even as Growth Slows Rivals’ Loss Signals Netflix’s Strong Moat
• Positive Sentiment: Commentary on Netflix’s buybacks and business economics provides potential valuation support, particularly with the shares trading well below their 52-week high and at a lower earnings multiple than earlier in the year. Netflix’s Stock Buybacks: History & Impact Explained
• Neutral Sentiment: Netflix’s latest reported quarter slightly exceeded earnings expectations, but revenue was just below consensus. Sales still grew 13.4% year over year, indicating continued expansion while also confirming that growth is moderating.
• Negative Sentiment: Wall Street is concerned that Netflix may have an engagement problem, especially as the company releases less viewing and engagement data. Reduced transparency could make it harder for investors to evaluate content performance and user momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: YouTube Premium’s planned bundle with Peacock and NBCUniversal sports highlights the growing competition for streaming subscribers, viewing time and entertainment budgets. This could pressure Netflix’s perceived growth rate and valuation. Is YouTube Going After Netflix?

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.