On August 20, 2024, David Hyman, Chief Legal Officer of Netflix Inc (NASDAQ:NFLX), completed a sale of 13,791 shares of the company’s stock. The transaction was filed with the SEC on the same day. Following this transaction, the insider now owns 31,610 shares of Netflix Inc.
Netflix Inc. is a streaming entertainment service provider offering television series, documentaries and feature films in a variety of genres and languages. The company offers its members the opportunity to receive streaming content via a variety of internet-enabled devices.
The shares were sold at a price of $700 apiece, representing a transaction value of approximately $9,653,700. This sale fits into a broader pattern observed over the past year, when the insider sold a total of 113,226 shares and made no purchase transactions.
Last year, Netflix Inc. had a total of 48 insider sales and no insider purchases. This trend in insider transactions can be visualized in the following insider trend image:
At the time of the transaction, Netflix Inc. had a market capitalization of approximately $299.18 billion. The stock’s price-earnings ratio was 43.57, above the industry average of 17.72.
The current share price of $700 makes Netflix Inc. appear significantly overvalued according to the GF Value, which is set at $500.97. This results in a price-GF-Value ratio of 1.4. The GF Value is calculated based on historical trading multiples, an adjustment factor from GuruFocus and future business development estimates from analysts.
This sale by the insider could be of interest to current and potential investors as it provides insight into how insiders react to the company’s current valuation and stock performance.
This article created by GuruFocus is intended to provide general insights and does not constitute tailored financial advice. Our commentary is based on historical data and analyst forecasts, uses an unbiased methodology and is not intended to serve as specific investment advice. It does not contain a recommendation to buy or sell any stock and does not take into account any individual investment objectives or financial circumstances. Our goal is to provide long-term, fundamental, data-driven analysis. Note that our analysis may not include the most recent, price-sensitive company announcements or qualitative information. GuruFocus does not hold a position in any stocks mentioned here.
This article first appeared on GuruFocus.
