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

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the transaction, the chief executive officer directly owned 206,266 shares in the company, valued at approximately $15,063,605.98. This trade represents a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 Stock Up 0.9%

Shares of NASDAQ:NFLX opened at $74.20 on Thursday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The company has a market cap of $308.96 billion, a PE ratio of 23.36, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71. The firm has a 50 day simple moving average of $75.81 and a 200 day simple moving average of $85.05.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter last year, the business posted $0.72 EPS. The company’s revenue was up 13.4% on a year-over-year basis. As a group, research analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.

Institutional Trading of Netflix

A number of institutional investors have recently bought and sold shares of NFLX. Pacific Sun Financial Corp raised its holdings in shares of Netflix by 1.6% during the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock worth $688,000 after acquiring an additional 9 shares in the last quarter. Beaird Harris Wealth Management LLC grew its stake in Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after purchasing an additional 10 shares in the last quarter. Monograph Wealth Advisors LLC grew its stake in Netflix by 1.8% in the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock valued at $913,000 after purchasing an additional 12 shares in the last quarter. Resources Management Corp CT ADV increased its position in Netflix by 2.0% in the 2nd quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock worth $1,110,000 after purchasing an additional 16 shares during the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its stake in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock worth $2,009,000 after purchasing an additional 20 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s cloud-gaming initiative is gaining traction, with monthly players reportedly increasing 11-fold since October. Investors may view this as a potential new engagement and growth engine beyond streaming and mobile games. Can NFLX Stock Compound Its Way Higher?
• Positive Sentiment: Some analysis argues that NFLX remains undervalued after its recent decline, citing Netflix’s scale, brand, content library and competitive moat. The company’s buybacks, strong profitability and lower valuation multiple could provide additional support. Netflix Faces Tougher Streaming Competition
• Neutral Sentiment: Options commentary recommends a calendar spread for investors expecting NFLX shares to remain relatively flat. This reflects a neutral near-term outlook rather than a clear directional catalyst. Netflix Calendar Spread: A Smart Play for a Neutral Outlook
• Neutral Sentiment: CEO Theodore Sarandos sold approximately $9.7 million of shares across two transactions, while insider David Hyman sold about $417,000. The sales were conducted under pre-arranged Rule 10b5-1 plans and were made to cover tax withholding on vested equity awards, reducing their signaling value. Netflix Insider Buying and Selling
• Negative Sentiment: Wall Street is increasingly concerned about Netflix’s engagement trends and the company’s decision to release less viewing data. Lower transparency may make it more difficult for investors to gauge content performance and user momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: YouTube Premium’s planned inclusion of Peacock and NBCUniversal sports content raises the competitive threat to Netflix by combining streaming entertainment and live sports in a broader bundle. This could pressure subscriber growth, viewing time and valuation. Is YouTube Going After Netflix?

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on NFLX shares. HSBC lifted their price target on Netflix from $106.00 to $114.00 and gave the company a “buy” rating in a report on Friday, April 10th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. UBS Group decreased their price objective on Netflix from $130.00 to $115.00 and set a “buy” rating for the company in a research report on Friday, July 17th. CLSA initiated coverage on Netflix in a report on Monday, July 20th. They issued an “outperform” rating on the stock. Finally, Deutsche Bank Aktiengesellschaft set a $110.00 target price on Netflix in a report on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $103.48.

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.