Netflix (NASDAQ:NFLX) CEO Sells $1,808,054.40 in Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 27,312 shares of Netflix stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $66.20, for a total transaction of $1,808,054.40. Following the sale, the chief executive officer directly owned 178,954 shares in the company, valued at $11,846,754.80. The trade was a 13.24% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Price Performance

Shares of NASDAQ NFLX opened at $63.41 on Friday. Netflix, Inc. has a 1 year low of $61.39 and a 1 year high of $116.73. The stock has a market capitalization of $260.38 billion, a P/E ratio of 18.33, a P/E/G ratio of 0.93 and a beta of 1.62. The company’s 50-day moving average is $71.03 and its 200 day moving average is $80.97. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.07 and a quick ratio of 1.07.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, topping the consensus estimate of $0.82 by $0.05. The business had revenue of $12.87 billion during the quarter, compared to analyst estimates of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. Netflix’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period last year, the business posted $0.59 earnings per share. On average, sell-side analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in NFLX. Clal Insurance Enterprises Holdings Ltd bought a new position in Netflix in the 2nd quarter valued at approximately $26,000. Pathway Financial Advisers LLC bought a new stake in shares of Netflix in the 3rd quarter worth $26,000. Sawyer & Company Inc bought a new stake in shares of Netflix in the 3rd quarter worth $27,000. Compound Global Advisors LLC bought a new stake in shares of Netflix in the 2nd quarter worth $29,000. Finally, Burnham & Co LLC purchased a new position in shares of Netflix in the second quarter worth $29,000. Institutional investors own 80.93% of the company’s stock.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered Other Worlds: A Stranger Things Adventure, a live-action prequel series. Extending a popular franchise could support viewer engagement, though the financial impact and timing are not yet clear. Article: Stranger Things prequel series
• Positive Sentiment: A valuation analysis argues NFLX could be undervalued, estimating about 23% upside to fair value. This offers a counterpoint to recent weakness, but is an analyst view rather than a company announcement. Article: Netflix stock fair-value analysis
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales, but the transactions were made to cover tax withholding on vested equity awards. That stated purpose makes them a less clear signal about management’s view of the stock. Article: Netflix insider share sales
• Negative Sentiment: Coverage noted NFLX slipping even with the new Stranger Things plans, suggesting the content announcement has not eased near-term selling pressure. The shares are also near their 52-week low and far below their 52-week high, reflecting a weak recent trend. Article: Netflix stock slips despite new Stranger Things plans

Analyst Upgrades and Downgrades

A number of research firms have recently commented on NFLX. Bank of America lowered their target price on Netflix from $105.00 to $90.00 and set a “buy” rating for the company in a research note on Wednesday, October 21st. Citizens Jmp reaffirmed a “market perform” rating on shares of Netflix in a research note on Wednesday, October 21st. JPMorgan Chase & Co. decreased their price objective on Netflix from $85.00 to $81.00 and set an “overweight” rating for the company in a report on Wednesday, October 21st. Oppenheimer reissued an “outperform” rating and set a $80.00 price objective (down from $85.00) on shares of Netflix in a research report on Wednesday, October 21st. Finally, Barclays set a $65.00 price objective on Netflix and gave the company an “equal weight” rating in a research report on Wednesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $89.14.

About Netflix

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.