Netflix Chairman Reed Hastings Offloads Over 20k Shares

On February 1st, 2024, Reed Hastings, the Chairman of Netflix, Inc. (NASDAQ:NFLX), engaged in a notable sale of company stock. Hastings parted ways with a total of 20,734 shares, each fetching an average price of $567.16, culminating in a substantial transaction valued at $11,759,495.44. This market activity has been officially disclosed through a filing with the SEC, accessible via a specified hyperlink.

Previous Transactions by Reed Hastings

Prior to this transaction, Hastings had engaged in other sales of Netflix stock. Specifically, on January 2nd, he sold 25,998 shares at an average price of $470.51, resulting in a total of $12,232,318.98. Furthermore, on November 7th, he sold 81,347 shares at an average price of $435.33, totalling $35,412,789.51.

Netflix's Financial Performance

The trading price for Netflix shares began at $564.64 on the Friday following the sale. Detailed financial ratios indicate a current ratio of 1.12, a quick ratio of 1.29, and a debt-to-equity ratio standing at 0.69. Netflix's market capitalization is a robust $244.35 billion, with additional metrics such as a price-to-earnings ratio of 47.01, a P/E/G ratio of 1.55, and a beta of 1.22. The lowest and highest price points of Netflix shares over the preceding year were $285.33 and $579.64, respectively. Average prices were noted as $491.87 over 50 days and $443.51 over 200 days.

Netflix's quarterly earnings report was released on January 23rd, revealing an EPS of $2.11, slightly below analyst expectations by $0.09. Meanwhile, the reported revenue was $8.83 billion, exceeding the forecasted $8.72 billion. Compared to the same quarter the previous year, where earnings were $0.12 per share, the latest revenue demonstrates a 12.5% increase. Projections for Netflix's earnings per share for the current fiscal year are set at 16.93.

Analysts' Perspectives on Netflix Stock

A range of analysts have recently weighed in on Netflix shares, with Deutsche Bank adjusting their stance from 'buy' to 'hold' while raising their price target from $460.00 to $525.00. Pivotal Research, on the other hand, boosted their target from $600.00 to $700.00 and maintained a 'buy' rating. Barclays shifted their price target from $375.00 to $475.00, opting for an 'equal weight' rating. Goldman Sachs increased their target price to $565.00 with a 'neutral' rating, and KeyCorp set their objective at $580.00, suggesting an 'overweight' position. A single analyst has recommended selling, twelve advise holding, and twenty-three endorse buying Netflix stock. The consensus steers towards a 'Moderate Buy' with an average price target of $553.33.

Significant Investments in Netflix

In recent months, several high-profile investment entities have adjusted their holdings in Netflix. BlackRock Inc. increased their shares by 4.3%, owning a total of 29,911,686 shares valued at approximately $13.17 billion. State Street Corp's stake grew by 3.1%, holding 16,699,906 shares worth about $7.36 billion. Capital World Investors now owns 11,431,257 shares following a 2.5% increase, valued around $5.04 billion. Additionally, Geode Capital Management LLC and Morgan Stanley both increased their holdings by 2.2% and 11.1%, respectively. Institutional investors and hedge funds collectively hold 79.95% of Netflix's stock.

An Overview of Netflix

Netflix, Inc. is synonymous with modern entertainment, offering a diverse range of TV series, documentaries, feature films, and mobile games in many languages. The company is acclaimed for its ability to deliver streaming content through numerous internet-connected devices such as TVs, digital players, set-top boxes, and mobile devices.

Netflix, StockSale, Hastings