Richard N. Barton, a director at Netflix Inc. (NASDAQ:), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Barton sold 5,698 shares of Netflix common stock on October 25, 2024. The shares were sold at a price of $756 each, amounting to a total transaction value of approximately $4.3 million.
In addition to the sale, Barton also exercised stock options to acquire 5,498 shares. These acquisitions were made at prices ranging from $93.11 to $109.96 per share, resulting in a total value of $562,565. Barton’s transactions were conducted under a pre-established trading plan, adopted on July 26, 2024.
Following these transactions, Barton holds 246 shares directly and an additional 80 shares indirectly through Barton Ventures II, LLC.
In other recent news, Verizon Communications Inc (NYSE:). reported a surge in wireless subscribers for the third quarter, exceeding analyst expectations due to its strategic 5G plans and bundled streaming services. Despite this growth, the company’s total revenue for the quarter slightly missed analyst expectations, coming in at $33.3 billion. Additionally, the company’s net income declined to $3.4 billion from $4.9 billion a year earlier, impacted by severance charges of $1.7 billion from a voluntary separation program.
Meanwhile, Netflix Inc. has been the subject of several analyst upgrades and price target increases following robust third-quarter earnings. Jefferies, a global investment banking firm, increased its price target for Netflix to $800 from the previous $780, maintaining a Buy rating. The firm anticipates that Netflix will gain over 10 million subscribers in the fourth quarter, driven by a strong content lineup. However, Barclays maintained its Underweight rating on Netflix shares, cautioning about the possible non-linear growth in the upcoming year.
KeyBanc has maintained an Overweight rating on Netflix and increased the price target to $785 from $760. The firm’s analysis followed Netflix’s third-quarter earnings report, which showed the number of paid subscribers added was in line with both KeyBanc’s and Wall Street’s predictions. TD Cowen raised the stock’s price target to $835 from $820, while reiterating a Buy rating, following the company’s higher-than-expected number of new subscribers in the third quarter. These are some of the recent developments for both companies.
InvestingPro Insights
As Netflix continues to make headlines with insider transactions, it’s worth noting some key financial metrics and insights from InvestingPro that shed light on the company’s current position.
Netflix’s market capitalization stands at an impressive $320.45 billion, reflecting its dominant position in the streaming industry. This aligns with the InvestingPro Tip highlighting Netflix as a “Prominent player in the Entertainment industry.”
The company’s P/E ratio of 41.54 indicates that investors are willing to pay a premium for Netflix’s earnings, which is consistent with the InvestingPro Tip stating that Netflix is “Trading at a high earnings multiple.” However, it’s interesting to note that another InvestingPro Tip suggests Netflix is “Trading at a low P/E ratio relative to near-term earnings growth,” with a PEG ratio of 0.54, implying that the stock might still be undervalued relative to its growth prospects.
Netflix’s revenue growth remains strong, with a 14.8% increase over the last twelve months, reaching $37.59 billion. This robust growth, coupled with an operating income margin of 25.65%, demonstrates the company’s ability to scale efficiently and maintain profitability.
The stock’s performance has been particularly noteworthy, with a one-year price total return of 88.28% as of the latest data. This exceptional return is reflected in the InvestingPro Tip mentioning a “High return over the last year.” Additionally, Netflix is currently trading at 96.91% of its 52-week high, which corroborates another InvestingPro Tip stating that the stock is “Trading near 52-week high.”
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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