Netflix, Inc. (NFLX)’s Reed Hastings Resumes Stock Sales

Netflix 7 How to Hacks

While headlines are often designed to provoke interest, the above does not suggest problems at Netflix, Inc. (NASDAQ:NFLX) but rather the industry standard for executives to compensate themselves for a job well done. And there is little question that Netflix has enjoyed tremendous gains over the last year. Granted, it was also Reed Hastings that nearly took down the company with an ill-contrived change in the company’s pricing structure.

Netflix, Inc. (NFLX)'s Reed Hastings Resumes Stock Sales

It was, after all, Hastings’ misstep that saw Icahn come into Netflix, Inc. (NASDAQ:NFLX) with a large position and the intention of forcing Hastings out. Clearly, both men are quite pleased that these “best laid plans” failed to materialize, and Hastings must also be quite pleased that the stock is enjoying the rise it ahs seen as his options come fast and furious now that he has been at the company for ten years.

It should also be noted that this is not a surprise stock sale, but rather, something that the company announced early in the year when they noted in a letter to shareholders that….

Starting in July, Reed [Hastings] has some 10-year employee options expiring every month, and he plans to sell upon forced-exercise. He has no other sales planned.

Selling Spree Welcomed by Some Investors

The use of the word some is a touch comical given that some in this case is 15,238 shares underlying options for the transaction completed this week.

Hastings famously went on a selling spree prior to making his last sale in May of last year. Others, however, have not gone the same prudent route. This includes Netflix’s content guru, Theodore “Hollywood” Sarandos.

Reed Hastings Ten Years at Netflix

Hastings’ ten years at Netflix, Inc. (NASDAQ:NFLX) couldn’t have come at a better time for the hot/cold CEO. The Street continues to smile on Netflix despite suggestions that the stock is horribly overpriced. One can’t blame CEO’s for exercising options that were built into their compensation package.

Many, including myself, have been quite high on Netflix, Inc. (NASDAQ:NFLX) in the last few months although its quite possible that we still view the company through rose-colored glasses on occasion. While this might be excusable for journalists, we hope that Netflix, Inc. (NASDAQ:NFLX)’s executives aren’t recklessly making decisions as they read their own favorable press in a quest to become the next HBO.

 

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)






About the Author

Brendan Byrne
While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala. To contact Brendan or give him an exclusive, please contact him at [email protected]

Be the first to comment on "Netflix, Inc. (NFLX)’s Reed Hastings Resumes Stock Sales"

Leave a comment