LOS GATOS, Calif.—Reed Hastings, Executive Chairman of Netflix Inc. (NASDAQ:NFLX), sold a significant portion of his holdings in the company, according to a recent SEC filing. On December 2, Hastings sold shares worth approximately $43.36 million, with transaction prices ranging from $885.66 to $901.54 per share. The sale comes as Netflix stock trades near its 52-week high of $908, having delivered an impressive 98% return over the past year. According to InvestingPro analysis, the stock appears overvalued at current levels, with technical indicators suggesting overbought conditions.
The transactions were part of a pre-established trading plan under Rule 10b5-1, adopted by Hastings earlier this year. Following these sales, Hastings retains direct ownership of 631 shares of Netflix stock. Additionally, he holds a substantial number of shares indirectly through the Hastings-Quillin Family Trust.
This move comes after Hastings exercised non-qualified stock options, acquiring 48,363 shares at a price of $59.02 per share, totaling about $2.85 million. The exercise of these options and subsequent sales are part of routine financial management for executives, often aimed at diversifying personal portfolios while maintaining compliance with SEC regulations.
In other recent news, Netflix has seen significant developments. The company reported a remarkable year, with third-quarter results showing subscriber additions surpassing estimates, and revenue and operating income exceeding expectations. Netflix's revenue growth reached 14.8% over the last twelve months, totaling $37.6 billion. A new ad-supported tier accounted for half of the new sign-ups in the third quarter, bringing total monthly active users for this tier to over 70 million.
Netflix's live streaming of the Jake Paul vs. Mike Tyson boxing match attracted over 108 million viewers, demonstrating the platform's potential for hosting live events. Canaccord Genuity maintained a Hold rating for Netflix, adjusting its price target to $940 from the previous $760. Evercore ISI reiterated an Outperform rating, citing potential catalysts for Netflix's performance, including the streaming of NFL games, the anticipated release of "Squid Games II", and pending price increases.
Pivotal Research and BofA Securities both increased their price targets for Netflix, positive about the company's earnings momentum and opportunities in advertising and live content. Amid these developments, Netflix announced the departure of executives Dean Garfield and Rachel Whetstone. These are the recent developments for Netflix.
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