Netflix (NASDAQ:NFLX) CEO Theodore Sarandos Sells 27,312 Shares of Stock

Key Points

• Netflix CEO Theodore Sarandos sold 27,312 shares at an average price of $73.35, generating approximately $2.0 million. The sale was conducted under a pre-arranged Rule 10b5-1 plan to cover tax withholding tied to vested equity awards, reducing his ownership by 13.24%.
• Netflix shares traded near $73.57, well below their 52-week high of $126.71. The company recently reported quarterly EPS of $0.80, slightly above estimates, while revenue rose 13.4% year over year to $12.56 billion but narrowly missed expectations.
• Analyst sentiment remains broadly favorable, with a “Moderate Buy” consensus and an average price target of $103.48, though some firms have lowered targets. Investors remain focused on moderating growth, engagement transparency and intensifying streaming competition.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) CEO Theodore Sarandos sold 27,312 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the transaction, the chief executive officer owned 178,954 shares in the company, valued at $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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 Price Performance

NFLX stock traded up $0.24 during mid-day trading 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 stock has a market cap of $306.34 billion, a PE ratio of 23.16, a P/E/G ratio of 0.90 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a fifty-two week low of $65.08 and a fifty-two week high of $126.71. The company's 50 day moving average is $76.36 and its two-hundred day moving average is $85.26.

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

Netflix News Summary

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?

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Stephens initiated coverage on shares of Netflix in a research report on Friday, July 17th. They set an "overweight" rating on the stock. Needham & Company LLC restated a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Barclays lowered their price target on Netflix from $85.00 to $80.00 and set an "equal weight" rating for the company in a report on Friday, July 17th. Citic Securities raised their price objective on Netflix from $95.00 to $107.00 and gave the stock a "hold" rating in a research report on Monday, April 27th. Finally, Weiss Ratings lowered shares of Netflix from a "hold (c+)" rating to a "hold (c)" rating in a report on Friday, June 26th. Four investment 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 assigned 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 target price of $103.48.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Turning Point Benefit Group Inc. raised its holdings in shares of Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares during the period. Imprint Wealth LLC acquired a new position in Netflix during the 3rd quarter worth about $25,000. Cornerstone Financial Management LLC purchased a new position in Netflix during the 4th quarter valued at about $26,000. Atlas Capital Advisors Inc. acquired a new position in Netflix in the 4th quarter valued at about $26,000. Finally, Jessup Wealth Management Inc acquired a new position in Netflix in the 4th quarter valued at about $27,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source