Netflix (NASDAQ:NFLX) Director Sells $33,244,599.00 in Stock

Key Points

• Netflix director Reed Hastings sold 386,700 shares on June 1 for about $33.2 million, leaving him with just 3,940 shares. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
• Hastings has been steadily reducing his stake, also selling 407,550 shares in May and 420,550 shares in April for roughly $38.0 million and $40.2 million, respectively.
• Netflix reported solid quarterly results, including earnings of $1.23 per share versus $0.76 expected and revenue of $12.25 billion, up 16.2% year over year. Despite this, the stock traded lower and analysts currently rate it a Moderate Buy with an average target price of $114.82.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the completion of the transaction, the director directly owned 3,940 shares in the company, valued at $338,721.80. This represents a 98.99% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Friday, May 1st, Reed Hastings sold 407,550 shares of Netflix stock. The stock was sold at an average price of $93.13, for a total transaction of $37,955,131.50.
• On Wednesday, April 1st, Reed Hastings sold 420,550 shares of Netflix stock. The shares were sold at an average price of $95.49, for a total transaction of $40,158,319.50.

Netflix Stock Performance

Shares of NASDAQ:NFLX traded down $2.49 during trading hours on Tuesday, hitting $83.36. The stock had a trading volume of 32,656,061 shares, compared to its average volume of 31,739,898. The stock's fifty day simple moving average is $93.00 and its 200 day simple moving average is $93.09. Netflix, Inc. has a 1-year low of $75.01 and a 1-year high of $134.12. The firm has a market capitalization of $351.00 billion, a price-to-earnings ratio of 26.92, a PEG ratio of 1.09 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating the consensus estimate of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. During the same quarter last year, the business earned $6.61 earnings per share. Netflix's revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Sell-side analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

NFLX has been the subject of a number of research reports. Bank of America reaffirmed a "buy" rating and issued a $125.00 price objective on shares of Netflix in a research note on Monday, May 18th. KeyCorp reaffirmed an "overweight" rating and issued a $115.00 price objective (up from $108.00) on shares of Netflix in a research note on Tuesday, April 14th. New Street Research raised their price objective on shares of Netflix from $96.00 to $102.00 in a research note on Friday, April 17th. Piper Sandler reaffirmed an "overweight" rating and issued a $115.00 price objective (up from $103.00) on shares of Netflix in a research note on Friday, April 17th. Finally, Wolfe Research reaffirmed an "outperform" rating and issued a $107.00 price objective on shares of Netflix in a research note on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have assigned a Hold rating to the stock. Based on data from MarketBeat, Netflix presently has an average rating of "Moderate Buy" and an average target price of $114.82.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Netflix by 0.4% in the third quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network's stock valued at $46,183,983,000 after buying an additional 142,238 shares in the last quarter. Checchi Capital Advisers LLC boosted its position in Netflix by 875.7% in the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network's stock valued at $2,920,000 after buying an additional 27,951 shares in the last quarter. Contravisory Investment Management Inc. boosted its position in Netflix by 837.2% in the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network's stock valued at $10,443,000 after buying an additional 99,496 shares in the last quarter. BNC Wealth Management LLC boosted its position in Netflix by 991.3% in the fourth quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network's stock valued at $3,866,000 after buying an additional 37,451 shares in the last quarter. Finally, Crew Capital Management Ltd boosted its position in Netflix by 1,021.9% in the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network's stock valued at $847,000 after buying an additional 8,226 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

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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