Netflix Inc's (NASDAQ:NFLX) Co-CEO Gregory K. Peters has recently engaged in transactions involving the company's stock, according to a new filing with the Securities and Exchange Commission. On May 3, Peters sold 1,278 shares of Netflix common stock, netting a total of $758,889, with the shares priced at $593.81 each.
In addition to the sale, Peters also acquired 2,593 shares through the vesting of restricted stock units (RSUs). These shares were acquired at no cost as they settled on a one-for-one basis upon vesting. However, to satisfy tax withholding obligations due to the vesting of these RSUs, 1,315 shares were withheld, valued at $579.34 each, amounting to a total of $761,832.
The transactions have adjusted Peters' holdings in Netflix, with the post-transaction amount of common stock directly owned by Peters now standing at 13,090 shares. It's important to note that the RSUs represent a contingent right to receive Netflix common stock, and are part of a grant where 1/12th of the RSUs vest quarterly, beginning from February 3, 2024.
These financial moves by Netflix's Co-CEO come as part of the regular financial disclosures required by company insiders. Investors often monitor such transactions for insights into executives' perspectives on their company's stock value and prospects.
InvestingPro Insights
Netflix Inc (NASDAQ:NFLX) has been a topic of interest among investors, not just for its executive transactions but also for its financial performance. Recent data from InvestingPro shows that Netflix has a market capitalization of 257.24 billion USD, reflecting its substantial presence in the market. The company's P/E ratio stands at 40.49, which is considered low relative to its near-term earnings growth. This suggests that the stock may be undervalued given its growth prospects, a point of note for investors looking for growth at a reasonable price.
InvestingPro Tips indicate that Netflix is trading at a high earnings multiple, with a P/E ratio (adjusted) for the last twelve months as of Q1 2024 at 39.97. Despite this high multiple, the company's EBITDA growth over the same period was an impressive 43.61%, signaling strong operational performance. Additionally, Netflix has had a notable one-year price total return of 84.96% as of the date provided, highlighting the significant appreciation in its stock value over the past year.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available. For instance, 25 analysts have revised their earnings upwards for the upcoming period, reflecting a positive outlook on the company's financial future. Furthermore, Netflix is recognized as a prominent player in the entertainment industry, with cash flows that can sufficiently cover interest payments, operating with a moderate level of debt, and not paying a dividend to shareholders, which can be indicative of a company reinvesting in growth.
To explore these insights further and to access a comprehensive list of InvestingPro Tips, investors can visit https://www.investing.com/pro/NFLX. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the financial landscape for Netflix evolves, these metrics and InvestingPro Tips provide a valuable context for investors considering the company's stock, especially in light of recent insider transactions.
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