Gregory K. Peters, Co-CEO of Netflix Inc. (NASDAQ:NFLX), recently sold shares in the company, according to a filing with the Securities and Exchange Commission. On November 5, Peters sold 1,278 shares of Netflix common stock at an average price of $766.19 each, amounting to a total transaction value of approximately $979,190.
In a related transaction on November 4, Peters acquired 2,592 shares through the vesting of restricted stock units (RSUs), which converted to common stock on a one-for-one basis. Additionally, 1,314 shares were withheld to cover tax obligations at a price of $755.51 per share, totaling $992,740.
Following these transactions, Peters now directly owns 12,950 shares of Netflix common stock.
In other recent news, Netflix has been the subject of significant events. The company's offices in Paris and Amsterdam were recently searched by tax fraud investigators from the PNF, France's financial crime unit. This operation is part of an ongoing preliminary investigation into allegations of tax fraud laundering, with the specific reasons not yet disclosed.
In another development, Netflix announced that executives Dean Garfield and Rachel Whetstone will be leaving as the company seeks a new chief global affairs officer. This role will encompass responsibilities for both public policy and communications, marking a strategic move by Netflix to consolidate these efforts under a single leadership position.
On the financial front, Guggenheim maintained a positive stance on Netflix, raising its price target to $825 and keeping a Buy rating on the shares. The firm's revised outlook reflects an optimistic view of Netflix's operating income and the expected growth of its ad-supported and gaming segments.
In addition, Jefferies, a global investment banking firm, increased its price target for Netflix to $800, anticipating a surge in subscribers driven by a strong content lineup. Meanwhile, Verizon Communications (NYSE:VZ) reported an increase in wireless subscribers for the third quarter, exceeding analyst predictions due to flexible 5G plans and bundled streaming services, including Netflix.
These recent developments underscore the ongoing shifts in Netflix's business strategy and market positioning.
InvestingPro Insights
The recent stock sale by Netflix Co-CEO Gregory K. Peters comes at a time when the company's shares are trading near their 52-week high, as indicated by InvestingPro data. With a market capitalization of $333.44 billion, Netflix continues to be a dominant force in the entertainment industry.
InvestingPro Tips highlight that Netflix is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.55. This suggests that despite the stock's high valuation, there may still be room for growth relative to its earnings potential. The company's strong financial position is further underscored by its ability to cover interest payments with cash flows and maintain a moderate level of debt.
Netflix's recent performance has been impressive, with a one-year price total return of 79.52% and a year-to-date return of 60.25%. The company's revenue growth remains solid at 14.8% over the last twelve months, with an operating income margin of 25.65%, indicating efficient operations.
For investors seeking more comprehensive analysis, InvestingPro offers 19 additional tips for Netflix, providing a deeper understanding of the company's financial health and market position.
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