• Reed Hastings sold 407,550 shares worth $37.96 million, an SEC filing shows.
• The shares were sold in three transactions at average prices of $92.283, $93.5427, and $94.1689 per share.
• The stock has fallen by more than 15% since reporting first-quarter earnings last month.

Shares of Netflix (NFLX) are on track to close down for a third consecutive trading session on Tuesday after the streaming giant disclosed a share sale by its co-founder, Reed Hastings.

On Monday, after markets closed, the company filed a Form 4 with the Securities and Exchange Commission, showing that Hastings sold 407,550 shares worth $37.96 million, pursuant to a trading plan he adopted in August 2023.

The shares were sold in three transactions at average prices of $92.283, $93.5427, and $94.1689 per share.

NFLX Share Buyback

Last month, in a regulatory filing, Netflix said it would buy back an additional $25 billion in stock, on top of the $6.8 billion remaining under its 2024 repurchase program.

The shares have taken a beating since the company reported first-quarter (Q1) results, in which its profit missed estimates. That, coupled with a tepid forecast, dampened investor sentiment and triggered a selloff. Since reporting earnings on April 16, NFLX stock has fallen by over 15%.

In Q1, revenue came in at $12.25 billion, ahead of the Fiscal AI estimate of $12.17 billion, and earnings per share of $1.23 were below the $1.32 estimate.

For the full year, the company’s revenue forecast range of $50.7 billion to $51.7 billion was unchanged. The midpoint remains below the $51.41B estimate.

Netflix also warned in its shareholder letter that the second quarter (Q2) will have the highest year-over-year content amortization growth rate in 2026, before decelerating to mid- to high-single-digit growth in the second half of the year. That led it to forecast a lower Q2 operating margin of 32.6%, compared with 34.1% last year.

What Retail Traders Think About NFLX

On Stocktwits, retail sentiment about NFLX turned ‘neutral’ from ‘bullish’ while message volumes rose nearly sixfold over the last 24 hours.

One user on the platform sees the current dip as a buying opportunity.

One bearish user thinks the stock could touch $82 during a second wave of selloff.

NFLX stock is down 6% so far this year and has lost more than 22% over the past 12 months.

On Wall Street, only one out of 50 analysts covering the stock has rated it a ‘Sell.’ Twelve analysts have rated it a ‘Hold,’ and 37 have a ‘Buy’ or higher rating, as per Koyfin.

At the time of writing, over 26.40 million NFLX shares changed hands on the Nasdaq, below its three-month average trading volume of 45.62 million shares.

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