Insider Selling: Netflix (NASDAQ:NFLX) Director Sells 2,160 Shares of Stock

Key Points

• Netflix director Richard Barton sold 2,160 shares at an average price of $75.10, generating $162,216 and reducing his direct holdings by 89.78%. The transaction was conducted under a pre-arranged Rule 10b5-1 trading plan.
• Netflix shares traded at $73.69, below their 50-day and 200-day moving averages, while remaining within a $65.08–$126.71 one-year range. The company’s latest quarter slightly beat EPS estimates, but revenue narrowly missed forecasts despite growing 13.4% year over year.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $103.48, while institutional investors own 80.93% of the stock. Recent coverage includes both higher price targets and more cautious ratings, reflecting recalibrated expectations.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) Director Richard Barton sold 2,160 shares of Netflix stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the sale, the director directly owned 246 shares in the company, valued at $18,474.60. This trade represents a 89.78% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Netflix Stock Performance

Netflix stock traded down $0.51 during trading on Thursday, hitting $73.69. The stock had a trading volume of 28,786,076 shares, compared to its average volume of 45,609,168. The stock's 50 day moving average is $75.81 and its two-hundred day moving average is $85.05. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71. The stock has a market cap of $306.84 billion, a price-to-earnings ratio of 23.19, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping 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 during the quarter, compared to the consensus estimate of $12.58 billion. During the same period last year, the business posted $0.72 earnings per share. The business's revenue for the quarter was up 13.4% on a year-over-year basis. As a group, analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently bought and sold shares of NFLX. Imprint Wealth LLC bought a new position in shares of Netflix in the third quarter worth $25,000. Wealth Watch Advisors INC purchased a new position in Netflix during the third quarter worth about $103,000. Strategic Wealth Investment Group LLC bought a new position in Netflix in the 2nd quarter worth about $121,000. Wiser Advisor Group LLC purchased a new stake in shares of Netflix in the 3rd quarter valued at about $114,000. Finally, Beaird Harris Wealth Management LLC boosted its position in shares of Netflix by 9.6% during the 3rd 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 during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is reportedly considering launching always-on, linear-style TV channels. The move could increase viewing time, improve content discovery and create additional advertising opportunities by combining the familiarity of cable with streaming distribution. Netflix Killed Cable TV. Now the Streaming Giant Wants to Bring It Back
• Positive Sentiment: A Grand Theft Auto VI extended gameplay trailer is scheduled to premiere on Netflix on August 27, potentially attracting substantial attention and new engagement to the platform. The direct financial benefit is uncertain, but the partnership could strengthen Netflix’s position in interactive entertainment. Take-Two Stock Slips Despite News of a GTA VI Trailer Coming to Netflix
• Neutral Sentiment: Netflix’s latest quarter modestly exceeded EPS expectations, while revenue narrowly missed forecasts. Revenue nevertheless increased 13.4% year over year, suggesting the business is still expanding but at a pace that may not satisfy investors accustomed to faster growth.
• Neutral Sentiment: Analyst opinion remains generally constructive, with a consensus “Moderate Buy” rating and an average price target above the current trading level. However, recent target-price reductions and downgrades indicate that Wall Street is recalibrating expectations.
• Negative Sentiment: Netflix shares slipped after CEO Ted Sarandos and Chief Product Officer David Hyman disclosed planned sales under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards. Because the sales were scheduled and tax-related, they are not necessarily a signal of deteriorating fundamentals, but the filings can weigh on sentiment. Netflix Insider Plans Stock Sale as NFLX Shares Slip
• Negative Sentiment: Investors are concerned that Netflix is disclosing less engagement data, making it harder to assess viewing trends, content performance and subscriber momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: Competition is intensifying as YouTube Premium plans to bundle Peacock and NBCUniversal sports, potentially increasing pressure on Netflix’s share of viewers, subscriptions and entertainment spending. Netflix and MercadoLibre Are Underperforming the S&P 500

Analysts Set New Price Targets

NFLX has been the topic of several recent research reports. CLSA began coverage on shares of Netflix in a report on Monday, July 20th. They set an "outperform" rating on the stock. Robert W. Baird set a $90.00 target price on shares of Netflix and gave the stock an "outperform" rating in a research note on Wednesday, July 22nd. Needham & Company LLC reissued a "buy" rating on shares of Netflix in a research report on Friday, April 17th. New Street Research upped their price target on shares of Netflix from $96.00 to $102.00 in a research note on Friday, April 17th. Finally, Weiss Ratings lowered shares of Netflix from a "hold (c+)" rating to a "hold (c)" rating in a research note on Friday, June 26th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and a consensus target price 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.

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