Netflix (NASDAQ:NFLX) Insider David Hyman Sells 5,722 Shares

Key Points

• David Hyman sold 5,722 Netflix shares on May 5 at an average price of $88.08 for about $503,994 to cover tax withholding, reducing his holdings to 316,100 shares (a 1.78% decrease), per an SEC filing.
• Netflix shares fell roughly 3.4% intraday to $87.89 on elevated volume; the company recently posted an earnings beat (EPS $1.23 vs. $0.76 est.) and set Q2 guidance of $0.78 EPS, supporting strong margins but not preventing short-term weakness.
• The backdrop is mixed: heavy institutional ownership and a consensus “Moderate Buy” rating with a $114.82 price target contrast with large insider selling (Reed Hastings sold 407,550 shares) and technical resistance pressure on the stock.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) insider David Hyman sold 5,722 shares of Netflix stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the sale, the insider owned 316,100 shares in the company, valued at approximately $27,842,088. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Stock Down 3.4%

Netflix stock traded down $3.13 during mid-day trading on Tuesday, reaching $87.89. The stock had a trading volume of 51,663,411 shares, compared to its average volume of 47,283,949. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The stock's 50-day simple moving average is $94.81 and its 200-day simple moving average is $96.77. The firm has a market capitalization of $370.09 billion, a PE ratio of 28.39, a price-to-earnings-growth ratio of 1.18 and a beta of 1.55. 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 (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.47. The company had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. Netflix's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the business posted $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, sell-side analysts forecast that Netflix, Inc. will post 3.56 EPS for the current fiscal year.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently modified their holdings of NFLX. Vanguard Group Inc. raised its position in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp lifted its position in Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC grew its position in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors raised its stake in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after buying an additional 80,025,890 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of Netflix by 685.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock valued at $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Company and sector buyback talk — Netflix is listed among consumer-discretionary names adding buyback capacity, which could provide support to the share price over time. Netflix, Pulte, and Mobileye Are Buying Their Own Dips—Should You?
• Positive Sentiment: Partnership news with theaters (mentioned in coverage of AMC) is attracting investor interest and signals distribution/collaboration opportunities that may boost content reach. Why Is AMC Entertainment Stock Surging On Tuesday?
• Neutral Sentiment: Market commentary argues some post-earnings reactions are “unfair” and that longer-term fundamentals remain strong, which tempers short-term pessimism but may not stop volatility. Microsoft and 11 More Stocks That Were Unfairly Punished After Earnings
• Neutral Sentiment: Analysis pieces suggest Netflix may be technically positioned for another leg higher, but the commentary coexists with today’s weakness — signalling mixed near-term momentum. Streaming Stock Looks Positioned for Next Leg Higher
• Neutral Sentiment: Feature write-ups about Netflix’s strategic choices (what it learned from an almost-acquisition) provide useful context on capital allocation and strategy but are unlikely to move the stock immediately. What Did Netflix Learn From the Almost-Acquisition of a Major Rival?
• Negative Sentiment: Large insider selling — co-founder/director Reed Hastings sold 407,550 shares under a 10b5-1 plan (average price ~$93), a high-value transaction that can be read as supply pressure even though it was pre‑arranged. Reed Hastings Sells 407,550 Shares of Netflix Stock
• Negative Sentiment: Analyst/technical pressure — coverage notes price targets clustered below earlier highs and a key resistance near $100; that, combined with shorts/positioning, helps explain the intraday drop. Benzinga’s market note cites the $114 target but emphasizes resistance and the current decline. What's Going On With Netflix Stock Tuesday?

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on NFLX. Huber Research upgraded shares of Netflix from a "strong sell" rating to a "strong-buy" rating in a report on Friday, February 27th. DZ Bank reissued a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Daiwa Securities Group lifted their price target on Netflix from $97.00 to $102.00 and gave the company an "outperform" rating in a research report on Thursday, April 23rd. Wedbush reiterated an "outperform" rating and set a $118.00 price objective on shares of Netflix in a research note on Thursday, April 16th. Finally, Rothschild & Co Redburn set a $120.00 price target on Netflix in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and fifteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $114.82.

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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