David A. Hyman, Netflix Inc (BVMF:NFLX34).'s (NASDAQ:NFLX) Chief Legal Officer, recently sold shares of the company, according to a Form 4 filing with the Securities and Exchange Commission. On November 5, Hyman sold 267 shares of Netflix common stock at an average price of $765.67 per share, totaling approximately $204,434.
Additionally, the filing revealed that on November 4, Hyman acquired 543 shares through the vesting of restricted stock units (RSUs), which were settled in shares of Netflix common stock on a one-for-one basis. On the same day, 276 shares were withheld to cover tax obligations related to the RSU vesting, valued at $755.51 per share, amounting to $208,520.
Following these transactions, Hyman holds 31,610 shares of Netflix common stock.
In other recent news, Netflix has been under investigation by France's elite financial crime unit, the PNF, over allegations of tax fraud. The company's offices in Paris and Amsterdam were raided as part of the preliminary investigation, with the specific reasons for the probe remaining undisclosed. Simultaneously, Netflix announced the departure of two top executives, Vice President of Global Public Policy Dean Garfield and Chief Communications Officer Rachel Whetstone, as it looks to fill a newly created position of Chief Global Affairs Officer.
In terms of financial analysis, Guggenheim has maintained a positive outlook on Netflix, raising its price target to $825 and keeping a Buy rating. The firm expects Netflix to continue seeing robust revenue per member growth, despite a slight reduction in projected revenue due to a shift towards the ad-supported tier. Furthermore, Jefferies, another investment banking firm, increased its price target to $800 for Netflix, anticipating the company to gain over 10 million subscribers in the fourth quarter, driven by a strong content lineup.
Meanwhile, Verizon Communications (NYSE:VZ) reported an increase in wireless subscribers for the third quarter, surpassing analyst expectations due to the company's flexible 5G plans and bundled streaming services. However, the company's total revenue for the quarter slightly missed the expected $33.43 billion, primarily due to a decline in wireless equipment revenue. These are some of the recent developments impacting both Netflix and Verizon.
InvestingPro Insights
Netflix's recent stock performance aligns with the insider transaction reported. According to InvestingPro data, Netflix's stock is trading near its 52-week high, with a 79.52% total return over the past year and a strong 27.59% return in the last three months. This robust performance may have influenced the timing of David A. Hyman's stock sale.
The company's financial health appears strong, with InvestingPro Tips highlighting that Netflix operates with a moderate level of debt and has liquid assets exceeding short-term obligations. This solid financial footing is further supported by the company's impressive revenue growth of 14.8% in the last twelve months, reaching $37.59 billion.
Netflix's valuation metrics present an interesting picture. While the company is trading at a high P/E ratio of 43.21, an InvestingPro Tip suggests it's trading at a low P/E ratio relative to near-term earnings growth, with a PEG ratio of 0.55. This could indicate potential undervaluation despite the recent stock price surge.
For investors seeking more comprehensive analysis, InvestingPro offers 19 additional tips for Netflix, providing a deeper understanding of the company's financial position and market performance.
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