Netflix Insider Selling Highlights Amid Strong GF ScoreTM and Sig

GuruFocus News 11/07/2026 10:56 On November 07, 2026, notable insider transactions at Netflix Inc (NASDAQ: NFLX) drew attention as Co-CEO Theodore Sarandos, CFO Spencer Neumann, and Chief Legal Officer David Hyman sold substantial shares. This insider selling activity comes alongside a compelling valuation signal from GuruFocus proprietary metrics.

GF ValueTM indicates Netflix is significantly undervalued by approximately 39.5%, with an intrinsic value estimate of $104.87 versus the current price of $63.41. GF ScoreTM stands at a robust 87 out of 100, reflecting strong overall company quality, particularly in profitability and growth.

Insider activity shows no insider buying over the past 12 months, with insiders selling shares valued at $318.2 million, while 21 premium gurus hold NFLX, with a nearly balanced split between those adding and trimming positions recently. What's Behind the News? This week’s insider transactions at Netflix include Co-CEO Theodore Sarandos selling 27,312 shares at $66.20 each, totaling approximately $1.81 million, reducing his stake by 13.24%.

CFO Spencer Neumann and Chief Legal Officer David Hyman also sold shares worth $612,109 and $369,678 respectively. Insider selling at this scale often raises questions about management’s outlook or liquidity needs, but it is important to contextualize these moves within broader market and company fundamentals.

Netflix Inc is a global leader in entertainment streaming, offering an extensive library of TV series, films, games, and live programming to over 190 countries. Operating primarily on subscription revenue, Netflix’s business model focuses on continuous content investment and user experience enhancement to maintain competitive advantage in the diversified media sector.

The company’s market capitalization stands at $260.38 billion, placing it among the largest players in Communication Services. Is NFLX Overvalued or Undervalued? According to GuruFocus’ GF ValueTM, Netflix is trading significantly below its intrinsic value estimate.

With a GF ValueTM of $104.87 compared to the current market price of $63.41, the stock shows a margin of safety of nearly 40%. This sizable undervaluation suggests that the market may be discounting Netflix’s future growth potential or profitability more than warranted by its fundamentals.

Supporting this valuation perspective, Netflix’s trailing twelve months (TTM) price-to-earnings (P/E) ratio is 18.32x, which is substantially lower than its 5-year median P/E of 40.19x. This compression in valuation multiples could reflect market skepticism or sector rotation but also indicates a potentially attractive entry point for investors focused on long-term growth.

For more details, see GF ValueTM . What Does NFLX's GF ScoreTM Tell Us? The GF ScoreTM is a composite measure that evaluates a company’s overall quality by integrating financial strength, profitability, growth, valuation, and momentum metrics.

Netflix’s GF ScoreTM of 87/100 signals a high-quality business with strong fundamentals. The company scores a perfect 10/10 in both profitability and growth, underscoring its efficient operations and consistent expansion. Financial strength is solid at 7/10, reflecting a healthy balance sheet and liquidity position.

However, valuation ranks lower at 4/10, consistent with the current discounted price relative to intrinsic value. Momentum is the weakest sub-rank at 2/10, indicating recent stock price trends have been subdued. Metric Rating GF ScoreTM 87/100 Financial Strength 7/10 Profitability 10/10 Growth 10/10 Valuation 4/10 Momentum 2/10 This profile suggests Netflix is a fundamentally strong company with excellent profitability and growth prospects, but recent market sentiment has pressured its momentum and valuation.

Investors may view this as an opportunity or a caution depending on their risk tolerance. For further insights, visit the NFLX stock page . What Are Gurus and Insiders Doing with NFLX?

GuruFocus tracks 21 premium gurus holding Netflix shares, with a nearly even split between those adding (11) and trimming (12) their positions in recent quarters. This balanced guru activity suggests a cautious but generally positive institutional stance on the stock’s prospects. In contrast, insider activity over the past 12 months shows no insider buying and significant selling totaling $318.2 million, including recent sales by top executives such as Co-CEO Theodore Sarandos.

This divergence between guru accumulation and insider selling may reflect differing time horizons or liquidity needs, but it remains a critical signal for investors to monitor. What This Means for Investors The combination of a strong GF ScoreTM and a GF ValueTM indicating nearly 40% undervaluation positions Netflix as an intriguing candidate for investors focused on quality growth at a discount.

While insider selling might raise caution, the balanced guru ownership and robust profitability metrics suggest confidence among sophisticated investors. The compressed P/E ratio relative to historical norms further supports the notion of a margin of safety. Investors should weigh these factors carefully in the context of their portfolio strategy and risk appetite.

For a deeper dive into Netflix’s fundamentals and valuation, explore the NFLX stock page and consider screening other opportunities with the GuruFocus Stock Screener . Frequently Asked Questions What is NFLX's GF ScoreTM? NFLX’s GF ScoreTM is 87 out of 100, indicating a high-quality company with strong profitability and growth, solid financial strength, but weaker momentum and valuation scores.

Is NFLX overvalued or undervalued? Based on GF ValueTM, Netflix is significantly undervalued by about 39.5%, with an intrinsic value estimate of $104.87 compared to the current price of $63.41. What is NFLX's P/E ratio compared to historical?

The trailing twelve months P/E ratio of 18.32x is well below its 5-year median P/E of 40.19x, suggesting the stock is trading at a discount relative to its historical earnings multiple. CEO Buys , CFO Buys : Stocks that are bought by their CEO/CFOs. Insider Cluster Buys : Stocks that multiple company officers and directors have bought.

Double Buys : Companies that both Gurus and Insiders are buying Triple Buys : Companies that both Gurus and Insiders are buying, and Company is buying back. This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting.

This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected] . Disclosures I/We may personally own shares in some of the companies mentioned above.

However, those positions are not material to either the company or to my/our portfolios.