Insider Selling: Netflix (NASDAQ:NFLX) CFO Sells $612,085.95 in Stock

Netflix, Inc. (NASDAQ:NFLX) CFO Spencer Neumann sold 9,253 shares of the company’s stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $66.15, for a total transaction of $612,085.95. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $4,881,010.05. This trade represents a 11.14% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Spencer Adam Neumann also recently made the following trade(s):

• On Monday, August 10th, Spencer Neumann sold 9,248 shares of Netflix stock. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92.

Netflix Stock Down 3.3%

NFLX opened at $63.41 on Friday. The company has a fifty day moving average price of $71.03 and a 200-day moving average price of $80.97. The firm has a market capitalization of $260.38 billion, a P/E ratio of 18.33, a price-to-earnings-growth ratio of 0.93 and a beta of 1.62. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.07. Netflix, Inc. has a one year low of $61.39 and a one year high of $116.73.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.05. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The firm had revenue of $12.87 billion for the quarter, compared to analysts’ expectations of $12.87 billion. During the same quarter in the prior year, the firm posted $0.59 earnings per share. The business’s quarterly revenue was up 11.9% on a year-over-year basis. Equities research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

NFLX has been the topic of several recent analyst reports. HSBC cut Netflix from a “buy” rating to a “hold” rating and lowered their price target for the company from $96.00 to $76.00 in a report on Tuesday, September 22nd. China Renaissance cut their price objective on Netflix from $100.00 to $80.00 and set a “hold” rating for the company in a report on Friday, July 17th. CICC Research decreased their price objective on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 21st. Deutsche Bank Aktiengesellschaft set a $93.00 price objective on shares of Netflix in a research report on Wednesday, October 21st. Finally, KGI Securities downgraded shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price on the stock. in a research note on Friday, July 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, seventeen have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $89.14.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered Other Worlds: A Stranger Things Adventure, a live-action prequel series. Extending a popular franchise could support viewer engagement, though the financial impact and timing are not yet clear. Article: Stranger Things prequel series
• Positive Sentiment: A valuation analysis argues NFLX could be undervalued, estimating about 23% upside to fair value. This offers a counterpoint to recent weakness, but is an analyst view rather than a company announcement. Article: Netflix stock fair-value analysis
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales, but the transactions were made to cover tax withholding on vested equity awards. That stated purpose makes them a less clear signal about management’s view of the stock. Article: Netflix insider share sales
• Negative Sentiment: Coverage noted NFLX slipping even with the new Stranger Things plans, suggesting the content announcement has not eased near-term selling pressure. The shares are also near their 52-week low and far below their 52-week high, reflecting a weak recent trend. Article: Netflix stock slips despite new Stranger Things plans

Institutional Investors Weigh In On Netflix

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Netflix in the second quarter worth $24,902,221,000. Bank of New York Mellon Corp purchased a new stake in Netflix during the second quarter valued at about $1,906,482,000. Legal & General Group Plc bought a new position in shares of Netflix during the second quarter valued at about $1,886,526,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Netflix during the second quarter valued at about $1,481,303,000. Finally, Assenagon Asset Management S.A. increased its holdings in shares of Netflix by 194.9% in the third quarter. Assenagon Asset Management S.A. now owns 16,111,438 shares of the Internet television network’s stock worth $1,121,034,000 after buying an additional 10,647,803 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.