Last month, shares of Netflix (NASDAQ: NFLX) experienced a notable rise, rising over 20%. This impressive rally was fueled by the company’s impressive Q3 2023 report, which marked its return to growth mode.

Exuberance from the broader market, with the S&P 500 index rising around 7% in just two weeks, also fueled Netflix’s upward trend.

But amid this surge, Netflix’s CEO surprisingly decided to sell the company’s stock, adding even more complexity to the otherwise optimistic narrative.

Why did Netflix’s CEO sell NFLX shares?

Notably, Reed Hastings, co-founder and CEO of Netflix, dumped more than $35 million in the company’s stock on November 7, amid the rally in NFLX and the S&P 500.

This is particularly interesting because when top executives start selling their companies’ stock, it’s certainly not a sign that they believe the stock is undervalued.

While the specific strategic reasons for Reed Hastings’ decision are not disclosed, one plausible explanation is his belief that Netflix stock may have temporarily peaked. He therefore decided to take profits from the current high valuation by selling.

The sale came just a week after he sold $6.7 million worth of Netflix shares.

Insider trading in Netflix shares. Source: MarketBeat

Other notable NFLX sales include recent sales by the streaming giant’s board member Richard Barton, who has sold over $620,000 worth of shares since early September.

NFLX stock price analysis

At the time of writing on November 14th, shares of Netflix were at $444.62, down 0.6% in the last 24 hours.

The stock rose about 2% in the last five days and more than 23.2% for the month, pushing its market cap to $194.6 billion.

NFLX 1 month price chart. Source: Finbold

Since the beginning of the year, the streaming company’s share price has risen over 50%, outperforming the S&P 500’s gain of 15.3%.

From a technical analysis (TA) perspective, NFLX is facing a resistance zone between $448.6 and $456.6. Clearing this barrier would allow the stock to attack the next major resistance at $485, a level last reached in July 2023.

On the other hand, the stock is supported by a support zone between $411.1 and $416.2 – where the 100-day moving average (MA) is located.

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Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.

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