Netflix (NASDAQ:NFLX) Director Reed Hastings Sells 407,550 Shares

Key Points

• Reed Hastings sold 407,550 Netflix shares on May 1 at an average price of $93.13 under a Rule 10b5-1 plan, raising about $37.96 million and leaving him with 3,940 shares (a 99.04% reduction in his holdings).
• The May sale follows two other large dispositions this quarter — ~420,550 shares on April 1 (avg $95.49, ~$40.16M) and ~410,550 on March 2 (avg $97.01, ~$39.83M) — indicating repeated insider selling.
• Netflix shares traded down about 1.1% to $91.05 as the company reported Q1 results that beat estimates (EPS $1.23 vs. $0.76; revenue $12.25B), set Q2 EPS guidance of $0.78, and carries a consensus analyst target of $114.82 ("Moderate Buy").

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) Director Reed Hastings sold 407,550 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director directly owned 3,940 shares of the company's stock, valued at approximately $366,932.20. This represents a 99.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Reed Hastings also recently made the following trade(s):

• On Wednesday, April 1st, Reed Hastings sold 420,550 shares of Netflix stock. The stock was sold at an average price of $95.49, for a total value of $40,158,319.50.
• On Monday, March 2nd, Reed Hastings sold 410,550 shares of Netflix stock. The stock was sold at an average price of $97.01, for a total value of $39,827,455.50.

Netflix Stock Down 1.1%

NASDAQ NFLX traded down $1.01 during trading on Monday, hitting $91.05. The company's stock had a trading volume of 25,510,960 shares, compared to its average volume of 47,226,531. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The company has a market cap of $383.38 billion, a PE ratio of 29.41, a P/E/G ratio of 1.18 and a beta of 1.55. The business's 50 day simple moving average is $94.81 and its 200-day simple moving average is $96.77. Netflix, Inc. has a fifty-two week low of $75.01 and a fifty-two week high of $134.12.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company's quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter last year, the company earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.56 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on NFLX shares. William Blair reaffirmed an "outperform" rating on shares of Netflix in a report on Wednesday, January 21st. Argus decreased their target price on Netflix from $141.00 to $110.00 and set a "buy" rating for the company in a report on Thursday, January 22nd. Phillip Securities lifted their target price on Netflix from $100.00 to $110.00 in a report on Monday, April 20th. UBS Group set a $104.00 target price on Netflix in a report on Tuesday, January 27th. Finally, Loop Capital set a $104.00 target price on Netflix in a report on Tuesday, January 27th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat.com, Netflix has an average rating of "Moderate Buy" and a consensus target price of $114.82.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. First Financial Corp IN raised its position in Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. raised its position in Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 239 shares in the last quarter. 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 valued at $25,000 after acquiring an additional 268 shares in the last quarter. Imprint Wealth LLC purchased a new position in Netflix during the third quarter valued at approximately $25,000. Finally, Cornerstone Financial Management LLC purchased a new position in Netflix during the fourth quarter valued at approximately $26,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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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