In the past month, Netflix (NASDAQ: NFLX) shares have experienced a remarkable ascent, surging over 20%. This impressive rally was propelled by the company’s impressive Q3 2023 report, marking its return to growth mode.
Also, the broader market’s exuberance, with the S&P 500 index soaring approximately 7% in just two weeks, further fueled Netflix’s upward trajectory.
Why has Netflix’s chairman sold NFLX shares?
Notably, Netflix co-founder and executive chairman Reed Hastings ditched more than $35 million worth of the company’s shares on November 7 – in the midst of the NFLX’s and S&P 500’s rallies.
This is particularly interesting because when top corporate executives begin to sell their companies’ shares, it is certainly not a sign that they believe the stock is undervalued.
While the specific strategic reasoning behind Reed Hastings’ decision remains undisclosed, one plausible explanation is his perception that Netflix’s shares might have peaked temporarily. Consequently, he chose to take profits on the current high valuation by selling.
The sale came just a week after he sold $6.7 million of Netflix’s stock.
Other notable NFLX sales recently include the ones by the streaming giant’s board member, Richard Barton, who sold over $620,000 worth of the stock since early September.
NFLX stock price analysis
At the time of writing on November 14, shares of Netflix were sitting at $444.62, down 0.6% in the past 24 hours.
The stock rose around 2% in the past five days and more than 23.2% across the month, lifting its market capitalization to $194.6 billion.
Year-to-date, the streaming company’s stock price surged over 50%, outperforming the S&P 500’s 15.3%.
From a technical analysis (TA) viewpoint, NFLX faces a resistance zone between $448.6 and $456.6. Clearing this barrier would allow the stock to attack the next major resistance at $485, a level last touched in July 2023.
On the downside, the stock is underpinned by a support zone between $411.1 and $416.2 – where the 100-day moving average (MA) is located.
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