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

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 27,312 shares of the company’s stock in a transaction dated 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 in the company, valued at $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available 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 Price Performance

Shares of Netflix stock opened at $73.69 on Friday. 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 50-day simple moving average of $75.56 and a two-hundred day simple moving average of $84.95. The stock has a market capitalization of $306.84 billion, a price-to-earnings ratio of 23.19, a price-to-earnings-growth ratio of 0.93 and a beta of 1.52.

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

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is reportedly considering launching always-on, linear-style streaming channels. The move could increase viewing time, improve content monetization and appeal to viewers seeking a traditional television experience. Netflix Killed Cable TV. Now the Streaming Giant Wants to Bring It Back
• Positive Sentiment: An extended Grand Theft Auto VI gameplay trailer is scheduled to debut on Netflix on August 27. The partnership could generate attention and engagement, although it is unlikely to materially change Netflix’s near-term financial outlook. Take-Two Stock Slips Despite News of a GTA VI Trailer Coming to Netflix
• Neutral Sentiment: Director Richard Barton’s sale of 2,160 shares was executed under a pre-arranged Rule 10b5-1 plan, making it a relatively limited signal about management’s current view of NFLX. The director retained 246 shares afterward. Netflix’s Latest Insider Sale Looks Bigger Than It Is
• Neutral Sentiment: Insider David Hyman previously sold shares to cover tax withholding tied to vested equity awards, another transaction with limited fundamental significance. Netflix’s latest quarter showed earnings slightly above expectations and 13.4% year-over-year revenue growth, but sales narrowly missed consensus.
• Negative Sentiment: CEO Gregory Peters sold 27,312 shares worth approximately $2.0 million. Although the filing did not identify a 10b5-1 plan, he continues to own more than 120,000 shares; nevertheless, the sale adds to investor concern after multiple insider transactions. Netflix Insider Plans Stock Sale as NFLX Shares Slip
• Negative Sentiment: Netflix has reportedly underperformed the S&P 500 by a wide margin over the past year. Concerns about weaker engagement, reduced viewing-data disclosure and intensifying streaming competition are weighing on sentiment and valuation. Netflix and MercadoLibre Are Underperforming the S&P 500

Institutional Trading of Netflix

Large investors have recently bought and sold shares of the business. Pacific Sun Financial Corp increased its stake in shares of Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock valued at $688,000 after buying an additional 9 shares during the period. Beaird Harris Wealth Management LLC boosted its holdings in Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after acquiring an additional 10 shares in the last quarter. Monograph Wealth Advisors LLC boosted its holdings in Netflix by 1.8% in the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock valued at $913,000 after acquiring an additional 12 shares in the last quarter. Resources Management Corp CT ADV increased its position in Netflix by 2.0% during the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock valued at $1,110,000 after purchasing an additional 16 shares during the period. Finally, Sompo Asset Management Co. Ltd. raised its holdings in Netflix by 1.4% in the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock worth $2,009,000 after purchasing an additional 20 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research firms have commented on NFLX. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a research note on Sunday, July 19th. Wolfe Research reiterated an “outperform” rating and set a $107.00 price objective on shares of Netflix in a research note on Friday, April 17th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. Guggenheim set a $75.00 target price on shares of Netflix and gave the company a “buy” rating in a research report on Friday, July 17th. Finally, Citigroup downgraded shares of Netflix from a “buy” rating to a “positive” rating in a report on Monday, July 20th. 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 issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $103.48.

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.