Netflix, Inc. (NFLX) Bucks Earnings Trend, Flies High On Back Of Strong Membership Growth

Now let’s take a closer look at the insider activity encompassing Netflix, Inc. (NASDAQ:NFLX). Tracking insider activity can be beneficial for investors as it helps to understand the view of the company’s management as far as the future outlook of the business is concerned. Hence, we keep a close eye on these transactions. While no insider purchases have been detected in Netflix, Inc. (NASDAQ:NFLX) so far this year, prominent insider sales include those by Director Leslie Kilgore to the tune of 17,000 shares in several transactions, and by CEO Reed Hastings, who has sold about 215,000 shares so far this year. However, it must be noted that unlike insider purchases, insider sales are not a strong indicator of a stock’s future performance as they can occur due to a wide variety of reasons with profit taking being one of them.

Coming back to the rising hedge fund interest in Netflix, Inc. (NASDAQ:NFLX), Philippe Laffont‘s Coatue Management and Karthik Sarma‘s SRS Investment Management are two of the largest stockholders among the funds that we track, with respective holdings amounting to 1.76 million shares valued at $734.69 million and 1.41 million shares valued at $588.34 million as of the latest 13F filings. Carl Icahn’s Icahn Capital LP used to rank between these firms, but the renowned activist recently sold his entire stake in the company, making more than $1.6 billion in three years according to some analysts. He has since stated that he believes Apple Inc. (NASDAQ:AAPL) is now the better investment of the two, with similar growth potential.

Considering the fact that Netflix has been delivering on its promises, we believe that the growth story is far from over and that hedge funds are right in their relatively bullish outlook towards the company. Consequently, we believe the stock is a good option to buy at the present time.

Disclosure: None