Insider Selling: Netflix (NASDAQ:NFLX) Insider Sells 5,723 Shares of Stock

Key Points

• Netflix insider David Hyman sold 5,723 shares for approximately $416,921 at an average price of $72.85, reducing his ownership by 1.78%. The sale was made to cover tax withholding obligations tied to vested equity awards.
• Netflix shares rose 0.3% to $73.57, but remained well below their 52-week high of $126.71. The stock has a market capitalization of about $306 billion and trades at a P/E ratio of 23.16.
• Netflix’s latest quarter slightly beat earnings expectations, with EPS of $0.80 versus $0.79 expected, while revenue reached $12.56 billion and grew 13.4% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $103.48.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) insider David Hyman sold 5,723 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Stock Up 0.3%

NASDAQ:NFLX traded up $0.24 during trading hours on Tuesday, reaching $73.57. The company's stock had a trading volume of 42,771,388 shares, compared to its average volume of 45,836,363. The company has a market capitalization of $306.34 billion, a P/E ratio of 23.16, a price-to-earnings-growth ratio of 0.90 and a beta of 1.52. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a 50 day moving average price of $76.36 and a two-hundred day moving average price of $85.26.

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

Key Netflix News

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?

Institutional Investors Weigh In On Netflix

Institutional investors and hedge funds have recently made changes to their positions in the stock. Pacific Sun Financial Corp increased its stake in shares of Netflix by 1.6% in the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network's stock worth $688,000 after acquiring an additional 9 shares during the last quarter. Beaird Harris Wealth Management LLC boosted its position in Netflix by 9.6% during the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network's stock valued at $137,000 after purchasing an additional 10 shares during the last quarter. Monograph Wealth Advisors LLC boosted its position in Netflix by 1.8% during the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network's stock valued at $913,000 after purchasing an additional 12 shares during the last quarter. Resources Management Corp CT ADV grew its stake in Netflix by 2.0% in the second 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 in the last quarter. Finally, Sompo Asset Management Co. Ltd. increased its position 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 during the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities analysts have issued reports on NFLX shares. Citic Securities lifted their target price on Netflix from $95.00 to $107.00 and gave the company a "hold" rating in a research note on Monday, April 27th. Oppenheimer set a $85.00 price target on shares of Netflix and gave the company an "outperform" rating in a research report on Friday, July 17th. Pivotal Research lowered their price target on shares of Netflix from $96.00 to $70.00 and set a "hold" rating on the stock in a report on Friday, July 17th. Guggenheim set a $75.00 price objective on shares of Netflix and gave the stock a "buy" rating in a research note on Friday, July 17th. Finally, China Intl Cap raised shares of Netflix to a "strong-buy" rating in a research report on Tuesday, July 21st. 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average 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.

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