Insider Selling: Netflix (NASDAQ:NFLX) CEO Sells $2,003,335.20 in Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 27,312 shares of Netflix 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 transaction, the chief executive officer owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This trade represents a 13.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible 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 Up 0.3%

Netflix stock traded up $0.24 during mid-day 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 market cap of $306.34 billion, a P/E ratio of 23.16, a P/E/G 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 company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a fifty day moving average of $76.36 and a 200-day moving average of $85.26.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm’s revenue was up 13.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.72 EPS. Sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Ratings Changes

NFLX has been the topic of several recent research reports. KGI Securities downgraded Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target on the stock. in a report on Friday, July 17th. Raymond James Financial reiterated a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. Wells Fargo & Company set a $80.00 price objective on Netflix and gave the stock an “equal weight” rating in a research report on Friday, July 17th. JPMorgan Chase & Co. cut their target price on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating on the stock in a research note on Friday, July 17th. Finally, Robert W. Baird set a $90.00 target price on shares of Netflix and gave the company an “outperform” rating in a report on Wednesday, July 22nd. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Institutional Trading of Netflix

A number of institutional investors have recently bought and sold shares of the business. BIP Wealth LLC purchased a new position in shares of Netflix in the 2nd quarter valued at about $1,482,000. Phillips Financial Management LLC purchased a new stake in Netflix during the second quarter worth approximately $374,000. Compound Global Advisors LLC purchased a new stake in Netflix during the second quarter worth approximately $29,000. Trifecta Capital Advisors LLC acquired a new position in Netflix in the second quarter valued at approximately $4,207,000. Finally, Next Capital Management LLC acquired a new position in Netflix in the second quarter valued at approximately $386,000. 80.93% of the stock is owned by hedge funds and other 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.