Netflix (NASDAQ:NFLX) provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally.
Insider selling during the last 30 days
Here is a table of Netflix's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Option Exercise & Sale||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|David Hyman||GC||May 23-June 18||6,801||Yes||Yes||5,230
shares + 27,328 options
|Richard Barton||Director||May 23-June 18||10,000||Yes||Yes||6,343 shares + 40,183 options||17.7%|
|Ted Sarandos||CCO||June 18||36,701||Yes||Yes||0 shares + 32,574 options||53.0%|
|Neil Hunt||CPO||June 2||5,000||Yes||Yes||80,786
shares + 129,645 options
|Ann Mather||Director||May 27||6,127||Yes||Yes||0 shares + 5,789 options||51.4%|
|Reed Hastings||CEO||May 27||15,238||Yes||Yes||952,215
shares + 1,422,206
There have been 79,867 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Netflix's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 1,864,942 shares sold and there have been zero shares purchased by insiders since January 2013.
Netflix reported the first-quarter financial results on April 21 with the following highlights:
|Net income||$53.1 million|
The six insiders sold their shares after these results.
Netflix's second-quarter guidance is as follows:
|Total streaming members||49.81 million|
|Net income||$69 million|
(Source: Earnings letter)
|Qtrly Rev Growth (yoy):||0.24||0.23|
|PEG (5 yr expected):||3.01||7.01|
Netflix has a higher P/S ratio than Amazon. In Amazon, there have been 1,060,995 shares sold and there have been zero shares purchased by insiders this year. Only Netflix has seen intensive insider selling during the last 30 days.
There have been six different insiders selling Netflix and there have not been any insiders buying Netflix during the last 30 days. Four of these six insiders decreased their holdings by more than 10%. Netflix has an insider ownership of 2.21%.
Before going short Netflix, I would like to get a bearish confirmation from the Point & Figure chart. The three main reasons for the proposed short entry are a relatively high P/S ratio, high P/E ratio, and the intensive insider-selling activity.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.