Theodore Sarandos Sells 27,312 Shares of Netflix (NASDAQ:NFLX) Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 27,312 shares of the stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at approximately $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 Price Performance

Shares of NASDAQ:NFLX opened at $74.20 on Thursday. The firm has a market capitalization of $308.96 billion, a price-to-earnings ratio of 23.36, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The business’s 50 day simple moving average is $75.81 and its 200-day simple moving average is $85.05. Netflix, Inc. has a 12 month low of $65.08 and a 12 month high of $126.71.

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

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Turning Point Benefit Group Inc. boosted its stake in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC acquired a new position in shares of Netflix in the third quarter valued at approximately $25,000. Cornerstone Financial Management LLC acquired a new position in shares of Netflix in the fourth quarter valued at approximately $26,000. Atlas Capital Advisors Inc. purchased a new position in shares of Netflix during the fourth quarter valued at approximately $26,000. Finally, Jessup Wealth Management Inc purchased a new position in shares of Netflix during the fourth quarter valued at approximately $27,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Morgan Stanley reiterated an “overweight” rating and issued a $90.00 price objective (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. JPMorgan Chase & Co. dropped their target price on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Guggenheim set a $75.00 target price on shares of Netflix and gave the stock a “buy” rating in a research report on Friday, July 17th. DZ Bank reaffirmed a “buy” rating on shares of Netflix in a report on Friday, April 17th. Finally, Piper Sandler reiterated an “overweight” rating and issued a $85.00 price target (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

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?

Netflix Company Profile

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.