There is no greater way to show confidence in a company than when senior management buys shares. Likewise, it is great when shares are not sold.
But when the CEO of Netflix sells another 348,000 shares between December 10 and December 21, in conjunction with all of his other sales, the only conclusion is that Hastings doesn’t believe in Netflix’s future.
The list of sales is endless. The list of buys…does not exist.
According to Yahoo Finance, he now only holds about 583,000 shares, which is a bit over 0.1% of the company. Don’t tell me that management’s interests are aligned with shareholders’.
This is exactly the kind of thing that NFLX stock bulls should be concerned about. NFLX stock keeps rising amidst tons of bad news, like Disney making a deal with Alibaba to stream in China, the fact that Europeans go out to be with friends and don’t stay in to watch Netflix, and that international expansion is a money-loser.
Yet NFLX stock bulls just keep singing the same tune.
Instead, you should sell NFLX stock right away. It cannot maintain its momentum, and the continuous sale of NFLX stock shares by Reed Hastings cannot be ignored. If you do so, you are a fool.