Key insights
- Netflix co-CEO Sarandos sold $2.4M in stock after RSU vesting, while shares trade down 22.5% YoY. Despite the sale, a $25B buyback program is authorized, and Freedom Broker raised its price target to $110 after strong Q1 results. InvestingPro analysis suggests the stock is undervalued. Overall, the news presents mixed signals, with insider selling offset by buybacks and positive analyst outlook.
Theodore A. Sarandos, Co-CEO of Netflix Inc. (NASDAQ:NFLX), sold 27,312 shares of the company’s common stock on May 5, 2026, for a total value of approximately $2,402,626. The shares were sold at prices ranging from $87.895 to $88.0136 per share.
These sales followed the vesting of restricted stock units (RSUs) on May 4, 2026, which resulted in Mr. Sarandos acquiring 54,388 shares of Netflix common stock. Concurrently, 27,076 shares were withheld to satisfy tax withholding obligations arising from the RSU vesting, totaling approximately $2,492,616, at a price of $92.06 per share. Each RSU represents a contingent right to receive one share of Netflix common stock.
The RSUs that vested were part of grants made to Mr. Sarandos on various dates, including January 25, 2024, January 23, 2025, and January 22, 2026. These awards vest on a quarterly basis according to the terms and conditions of the underlying agreements.
Following these transactions, Mr. Sarandos directly owns 284,804 shares of Netflix common stock.The sale comes as Netflix shares trade at $87.89, down 22.5% over the past year. According to InvestingPro analysis, the stock appears undervalued based on Fair Value metrics. With a P/E ratio of 28.38 and PEG ratio of 0.59, InvestingPro Tips suggest the streaming giant is trading at a low P/E relative to near-term earnings growth—one of 14 exclusive tips available to subscribers, alongside comprehensive Pro Research Reports.
In other recent news, Netflix Inc announced that its board of directors has authorized an additional $25 billion stock buyback program. As of March 31, the company had approximately $6.8 billion available for repurchase under its existing authorization. Meanwhile, Freedom Broker has raised its price target on Netflix stock to $110, maintaining a Buy rating, following strong first-quarter 2026 results that surpassed consensus estimates. These results were attributed to subscriber growth, increased advertising revenue, and improved retention rates. Wolfe Research reiterated an Outperform rating for Netflix, highlighting positive engagement trends despite competition from platforms like YouTube, Meta, and TikTok.
In other developments, Warner Bros Discovery shareholders approved a proposed $110 billion merger with Paramount Skydance. However, executive compensation plans tied to the deal were rejected in an advisory vote, with proxy advisor ISS labeling CEO David Zaslav’s potential payout as "extremely large." Additionally, Peloton Interactive announced a licensing agreement with Spotify for 1,400 workouts, although financial details of the deal were limited. Needham maintained a Hold rating on Peloton shares following the announcement.
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