On September 11, 2023, Richard Barton, a director at Netflix Inc (NFLX, Financial), sold 500 shares of the company. This move is part of a broader trend of insider selling at Netflix, which we will explore in more detail in this article.
Who is Richard Barton?
Richard Barton is a prominent figure in the tech industry, known for his role as a director at Netflix Inc. He has a long history of involvement in various tech companies, contributing to their growth and development. His decision to sell shares in Netflix is noteworthy and may signal important trends in the company's stock performance.
About Netflix Inc
Netflix Inc is a leading entertainment service provider, offering a wide range of TV series, documentaries, and feature films across a wide variety of genres and languages. The company has over 200 million paid memberships in more than 190 countries, making it a global leader in the streaming entertainment industry.
Insider Sell Analysis
Over the past year, Richard Barton has sold a total of 2,500 shares and has not purchased any shares. This recent sale of 500 shares is part of this larger trend.
The insider transaction history for Netflix Inc shows that there have been no insider buys over the past year. Meanwhile, there have been 19 insider sells over the same timeframe. This trend of insider selling could be a signal to investors about the company's future stock performance.
Netflix Inc's Valuation
On the day of the insider's recent sell, shares of Netflix Inc were trading for $443.07 apiece. This gives the stock a market cap of $182.68 billion.
The price-earnings ratio is 43.90, which is higher than the industry median of 17.12 and lower than the company’s historical median price-earnings ratio. This suggests that the stock is currently trading at a premium compared to its peers, but is still within its historical range.
With a price of $443.07 and a GuruFocus Value of $451.66, Netflix Inc has a price-to-GF-Value ratio of 0.98. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell, along with the broader trend of insider selling at Netflix Inc, could be a signal to investors about the company's future stock performance. However, with a price-to-GF-Value ratio of 0.98, the stock appears to be fairly valued at the moment.
