Netflix (NASDAQ:NFLX) CEO Theodore Sarandos Sells 105,850 Shares

Key Points

• Netflix CEO Theodore Sarandos sold 105,850 shares for approximately $7.73 million, reducing his direct ownership by 33.91%. The transaction was made under a pre-arranged Rule 10b5-1 plan to cover tax 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 company’s latest quarterly earnings slightly exceeded expectations, while revenue increased 13.4% year over year to $12.56 billion, narrowly missing forecasts.
• Analyst sentiment remains broadly positive, with Netflix holding a “Moderate Buy” consensus rating and an average price target of $103.48, although several firms recently lowered their targets and one downgraded the stock to neutral.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) CEO Theodore Sarandos sold 105,850 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total value of $7,730,225.50. Following the sale, the chief executive officer directly owned 206,266 shares of the company's stock, valued at approximately $15,063,605.98. The trade was a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 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 Stock Up 0.3%

NFLX traded up $0.24 during trading on Tuesday, reaching $73.57. The company had a trading volume of 42,771,388 shares, compared to its average volume of 45,836,363. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71. The business's fifty day moving average price is $76.36 and its 200 day moving average price is $85.26. The company has a market cap of $306.34 billion, a P/E ratio of 23.16, a PEG ratio of 0.90 and a beta of 1.52.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion during the quarter, compared to analysts' expectations of $12.58 billion. During the same quarter in the prior year, the company earned $0.72 earnings per share. The business's quarterly revenue was up 13.4% compared to the same quarter last year. Equities analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Institutional Trading of Netflix

Several institutional investors and hedge funds have recently bought and sold shares of NFLX. Turning Point Benefit Group Inc. raised its position in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock worth $25,000 after acquiring an additional 268 shares in the last quarter. Imprint Wealth LLC acquired a new position in shares of Netflix during the 3rd quarter worth about $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Netflix during the 4th quarter worth about $26,000. Atlas Capital Advisors Inc. bought a new stake in shares of Netflix in the 4th quarter valued at about $26,000. Finally, Jessup Wealth Management Inc bought a new stake in shares of Netflix in the 4th quarter valued at about $27,000. Institutional investors own 80.93% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently commented on NFLX. Guggenheim set a $75.00 price target on Netflix and gave the company a "buy" rating in a report on Friday, July 17th. Wedbush decreased their price objective on Netflix from $118.00 to $105.00 and set an "outperform" rating for the company in a report on Friday, July 17th. Weiss Ratings lowered Netflix from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, June 26th. Seaport Research Partners cut Netflix from a "buy" rating to a "neutral" rating in a research note on Monday, July 20th. Finally, UBS Group reduced their price target on Netflix from $130.00 to $115.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Netflix currently has an average rating of "Moderate Buy" and an average target price of $103.48.

More 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?

About Netflix

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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