Netflix (NASDAQ:NFLX) CEO Theodore Sarandos Sells 27,312 Shares

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 27,312 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the sale, the chief executive officer directly owned 178,954 shares in the company, valued at $13,126,275.90. This represents a 13.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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

Netflix stock opened at $73.57 on Wednesday. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a market cap of $306.34 billion, a P/E ratio of 23.16, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. The firm’s fifty day moving average price is $76.08 and its 200-day moving average price is $85.15.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS 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 firm earned $0.72 earnings per share. The firm’s revenue was up 13.4% on a year-over-year basis. On average, equities research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

NFLX has been the topic of several research reports. Stephens assumed coverage on shares of Netflix in a research note on Friday, July 17th. They set an “overweight” rating on the stock. UBS Group decreased their target price on shares of Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. Oppenheimer set a $85.00 price objective on Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. Wedbush decreased their price objective on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. Finally, Rosenblatt Securities set a $75.00 target price on Netflix and gave the company a “neutral” rating in a research note on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $103.48.

Netflix News Summary

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?

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the period. State Street Corp increased its position in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares during the period. Geode Capital Management LLC raised its holdings in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors lifted its position in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Finally, Price T Rowe Associates Inc. MD lifted its position in shares of Netflix by 685.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. Institutional investors own 80.93% of the company’s stock.

About Netflix

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.