Netflix (NASDAQ:NFLX) Insider Sells $369,677.85 in Stock

Key Points

• Netflix insider David Hyman sold 5,727 shares for about $369,678, a 3.33% reduction in his holdings. The sale covered tax withholding obligations tied to vested equity awards; he retained 166,100 shares.
• Netflix reported quarterly earnings of $0.87 per share, topping the $0.82 consensus estimate, while revenue rose 11.9% year over year to $12.87 billion.
• Shares traded at $66.39, near their 52-week low of $61.39 and below their 50- and 200-day moving averages. Analysts’ average rating was “Moderate Buy,” with a consensus price target of $89.14.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) insider David Hyman sold 5,727 shares of the stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $64.55, for a total transaction of $369,677.85. Following the completion of the sale, the insider directly owned 166,100 shares of the company's stock, valued at $10,721,755. This represents a 3.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Price Performance

Shares of NFLX traded up $2.97 during trading hours on Wednesday, reaching $66.39. 49,687,215 shares of the stock traded hands, compared to its average volume of 42,833,777. The company's 50-day moving average price is $72.00 and its two-hundred day moving average price is $81.31. Netflix, Inc. has a 52-week low of $61.39 and a 52-week high of $116.73. The company has a market cap of $272.62 billion, a P/E ratio of 19.19, a price-to-earnings-growth ratio of 0.91 and a beta of 1.62. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43.

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

Institutional Investors Weigh In On Netflix

A number of hedge funds have recently modified their holdings of NFLX. Nykredit A S acquired a new stake in Netflix during the second quarter valued at $105,697,000. Rockland Trust Co. increased its position in Netflix by 27.5% in the 3rd quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network's stock worth $15,253,000 after purchasing an additional 47,339 shares during the last quarter. Boomfish Wealth Group LLC increased its position in Netflix by 91.5% in the 3rd quarter. Boomfish Wealth Group LLC now owns 34,547 shares of the Internet television network's stock worth $2,404,000 after purchasing an additional 16,510 shares during the last quarter. Welch & Forbes LLC increased its position in Netflix by 3,464.5% in the 1st quarter. Welch & Forbes LLC now owns 118,448 shares of the Internet television network's stock worth $11,389,000 after purchasing an additional 115,125 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Netflix during the 2nd quarter worth about $37,743,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix reportedly posted record profits, repurchased nearly $5 billion of its stock, and signed deals with Disney and the NFL. Those factors support the case that its business remains financially strong even as its shares trade near a 52-week low. Netflix Is Playing a Bigger Game. Investors Should Take Notice
• Positive Sentiment: Investor Bill Ackman called Netflix “incredibly cheap” after the stock’s steep decline. The article also notes that subscriber churn improved year over year in the third quarter, a potentially encouraging sign for retention. Bill Ackman: Netflix “an Incredibly Cheap Stock” After a 55% Drop. But Is He Right?
• Positive Sentiment: Netflix launched an experimental AI Discover feature that recommends content based on viewers’ moods. Better discovery could help users find shows and remain engaged with the service. Netflix's new AI Discover tab helps you find something to watch based on your mood
• Neutral Sentiment: Netflix hired an adtech executive, signaling continued investment in its advertising platform. The move could support future ad growth, but the article provides no details on near-term financial impact. Netflix just hired an adtech operator who knows how to solve 'gnarly problems'
• Negative Sentiment: Investor concerns include slowing revenue growth, uninspiring guidance, and a reported decline in viewing hours tied to changes in Netflix’s content mix. These issues could limit a recovery if engagement and growth do not improve. Netflix Trades at a Discount to the S&P 500's Valuation. Is It Deserved?

Analysts Set New Price Targets

NFLX has been the topic of a number of research analyst reports. Canaccord Genuity Group set a $110.00 target price on shares of Netflix in a research note on Wednesday, October 21st. Evercore reissued an "outperform" rating and set a $90.00 price target on shares of Netflix in a research report on Wednesday, October 21st. Wells Fargo & Company lowered Netflix from a "neutral" rating to an "underweight" rating and decreased their price objective for the company from $80.00 to $57.00 in a report on Friday, September 18th. Wolfe Research cut shares of Netflix from an "outperform" rating to a "peer perform" rating in a research note on Thursday, October 22nd. Finally, Rothschild & Co Redburn lowered their price target on Netflix from $120.00 to $93.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Netflix has an average rating of "Moderate Buy" and a consensus target price of $89.14.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.

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