Insider Selling: Netflix (NASDAQ:NFLX) CEO Sells 27,312 Shares of Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Theodore Sarandos sold 27,312 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total value of $2,402,636.64. Following the completion of the transaction, the chief executive officer owned 284,804 shares of the company’s stock, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Stock Down 3.4%

NASDAQ:NFLX traded down $3.13 during trading hours on Tuesday, hitting $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 current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. Netflix, Inc. has a 1-year low of $75.01 and a 1-year high of $134.12. The business has a 50 day simple moving average of $94.81 and a two-hundred day simple moving average of $96.77. The company has a market cap 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 (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (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 during the quarter, compared to the consensus estimate of $12.17 billion. During the same quarter last year, the company earned $6.61 earnings per share. Netflix’s revenue for the quarter was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts predict that Netflix, Inc. will post 3.56 EPS for the current year.

Netflix News Summary

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?

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake 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 valued at $36,567,805,000 after acquiring an additional 351,493,659 shares during the period. State Street Corp boosted its stake in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the period. Geode Capital Management LLC boosted its stake in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the period. Capital World Investors boosted its stake in Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Finally, Price T Rowe Associates Inc. MD boosted its stake in Netflix by 685.8% in the fourth 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 acquiring an additional 75,107,069 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on NFLX shares. Citizens Jmp restated a “market perform” rating on shares of Netflix in a research note on Wednesday, April 15th. Guggenheim set a $120.00 target price on Netflix and gave the company a “buy” rating in a research note on Friday, April 17th. Royal Bank Of Canada restated a “hold” rating on shares of Netflix in a research note on Wednesday, January 21st. The Goldman Sachs Group upgraded Netflix from a “neutral” rating to a “buy” rating in a research note on Monday, April 13th. Finally, Weiss Ratings upgraded Netflix from a “hold (c)” rating to a “hold (c+)” rating in a research note on Monday. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and fifteen have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average 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.