Skip to content

Insider trading alert: Netflix chairman dumps $35 million of NFLX stock

Insider trading alert: Netflix chairman dumps $35 million of NFLX stock

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. 

Yet, amidst this surge, Netflix’s executive chairman intriguingly opted to sell the company’s stock, adding a layer of complexity to an otherwise bullish narrative.

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. 

Netflix stock insider trading activity. Source: MarketBeat

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.

NFLX 1-month price chart. Source: Finbold

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.

Buy stocks now with Interactive Brokers – the most advanced investment platform


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Read Next:

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts