LOS GATOS, Calif.—Leslie J. Kilgore, a director at Netflix Inc. (NASDAQ:NFLX), recently executed a series of stock transactions involving the company's common stock. According to a recent SEC filing, Kilgore sold 334 shares of Netflix stock on November 12, 2024, at a price of $820 per share. This transaction resulted in a total sale value of approximately $273,880.
In addition to the sale, Kilgore exercised stock options to acquire 334 shares at a price of $186.82 per share, a transaction valued at $62,397. These transactions were conducted under a Rule 10b5-1 trading plan that Kilgore adopted on January 29, 2024. Following these transactions, Kilgore's direct ownership of Netflix shares stands at 35,262 shares.
In other recent news, Netflix continues to expand its advertising-supported user base, as reported by Evercore ISI, with a significant increase from 40 million Monthly Active Users (MAUs) in May to 70 million. This growth is projected to help Netflix double its advertising revenue by 2025. Meanwhile, Netflix's Paris and Amsterdam offices are under investigation by France's elite financial crime unit, PNF, over allegations of tax fraud. In executive changes, Netflix announced the departure of Vice President of Global Public Policy Dean Garfield and Chief Communications Officer Rachel Whetstone, as the company seeks a new chief global affairs officer.
In financial developments, Guggenheim maintained a positive stance on Netflix, raising its price target and keeping a Buy rating on the shares. The firm's analysis suggests that Netflix's core streaming business will sustain, while its newer ad-supported and gaming segments will grow. Jefferies, another global investment banking firm, anticipates that Netflix will gain over 10 million subscribers in the fourth quarter, driven by a strong content lineup.
In related news, Verizon Communications Inc (NYSE:VZ). reported an increase in wireless subscribers for the third quarter, exceeding analyst expectations. This growth is attributed to the company's flexible 5G plans and bundled streaming service offers, including Netflix. However, the company's total revenue for the quarter slightly missed analyst expectations. These recent developments provide investors with a snapshot of the ongoing shifts in Netflix's business strategies and market position.
InvestingPro Insights
Leslie J. Kilgore's recent stock transactions at Netflix Inc. (NASDAQ:NFLX) reflect the company's strong market position and impressive performance. According to InvestingPro data, Netflix's stock is trading near its 52-week high, with a price that's 99.22% of its peak. This aligns with the company's robust financial performance, as evidenced by its 14.8% revenue growth over the last twelve months and a substantial 56.58% EBITDA growth in the same period.
InvestingPro Tips highlight that Netflix is a prominent player in the Entertainment industry, with 28 analysts revising their earnings upwards for the upcoming period. This positive sentiment is supported by the company's strong financial metrics, including a high return over the last year and a strong return over the last three months.
However, investors should note that the stock's RSI suggests it may be in overbought territory. This could explain Kilgore's decision to sell some shares while also exercising options to maintain a significant stake in the company.
For those seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for Netflix, providing deeper insights into the company's financial health and market position.
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