Leslie J. Kilgore, a director at Netflix Inc. (NASDAQ:NFLX), executed a sale of company shares valued at approximately $274,400, according to a recent SEC filing. The transaction, which took place on November 11, 2024, involved the sale of 343 shares at a price of $800 per share.
In addition to the sale, Kilgore exercised options to acquire 343 shares at a price of $182.03 each, with the transaction being part of a pre-established Rule 10b5-1 trading plan adopted earlier this year. Following these transactions, Kilgore now holds 35,262 shares of Netflix.
In other recent news, Netflix has been maintaining a strong performance with its advertising-supported plan reaching 70 million Monthly Active Users (MAUs), according to a report by Evercore ISI. This growth, marking the second anniversary of the initiative, is expected to help the company double its advertising revenue by 2025. Meanwhile, Netflix is also under investigation by France's elite financial crime unit, PNF, over allegations of tax fraud, with its offices in Paris and Amsterdam recently raided. The company also announced the departure of two top executives, Dean Garfield and Rachel Whetstone, as it seeks a new chief global affairs officer.
In financial developments, Guggenheim maintained a positive stance on Netflix, raising its price target and keeping a Buy rating on the shares. The firm's analysis suggests that Netflix's core streaming business will sustain, while its newer ad-supported and gaming segments will grow. Jefferies, a global investment banking firm, also updated its outlook on Netflix, increasing the price target and maintaining a Buy rating. The firm anticipates that Netflix will gain over 10 million subscribers in the fourth quarter, driven by a strong content lineup.
In the telecom sector, Verizon Communications Inc (NYSE:VZ). reported an increase in wireless subscribers for the third quarter, exceeding analyst expectations. The company's growth is attributed to its flexible 5G plans and bundled streaming service offers, including Netflix. However, the company's total revenue for the quarter slightly missed analyst expectations. These are some of the recent developments in the streaming and telecom sectors.
InvestingPro Insights
As Leslie J. Kilgore's recent stock transaction unfolds, it's worth examining Netflix's current market position through the lens of InvestingPro data. The company's market capitalization stands at an impressive $350.3 billion, reflecting its dominant position in the streaming industry. This aligns with the InvestingPro Tip that Netflix is a "Prominent player in the Entertainment industry."
Netflix's financial health appears robust, with a revenue of $37.59 billion over the last twelve months as of Q3 2024, showing a solid growth of 14.8%. This growth trajectory is further emphasized by the company's strong performance in the stock market, with a remarkable 84.31% price total return over the past year.
The company's valuation metrics present an interesting picture. While Netflix is trading at a relatively high P/E ratio of 45.42, an InvestingPro Tip suggests it's "Trading at a low P/E ratio relative to near-term earnings growth." This is supported by the PEG ratio of 0.58, indicating that the stock might be undervalued when considering its growth prospects.
For investors seeking more comprehensive analysis, InvestingPro offers 21 additional tips for Netflix, providing a deeper understanding of the company's financial position and market outlook.
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