HASTINGS REED 4

What Happened

• Reed Hastings, a director of Netflix (NFLX), exercised 420,550 derivative securities on April 1, 2026 at an exercise price of $9.44 (cost ≈ $3.97M) and the same day sold the resulting shares in open-market trades for aggregate proceeds of about $40.16M. The filings show three blocks sold: 152,047 shares at a weighted avg $95.02 ($14.45M), 247,923 shares at $95.68 ($23.72M), and 20,580 shares at $96.66 ($1.99M). The net cash (sale proceeds minus exercise cost) is roughly $36.19M. The Form 4 also reports the disposition of 420,550 shares labeled as derivative and a separate award of 654 derivative shares at $0.

Key Details

• Transaction date: April 1, 2026; Form 4 filed April 2, 2026 (timely).
• Exercise: 420,550 shares at $9.44 (total reported cost $3,968,730).
• Sales: 420,550 shares sold in multiple trades for total proceeds $40,156,465 (weighted averages shown above).
• Price ranges (per footnotes): sales executed across ranges $94.30–$97.17 (weighted averages reported).
• Additional: 654 shares reported as a grant/award at $0 (derivative).
• Reporting capacity: transaction noted “As Trustee of the Hastings-Quillin Family Trust” (F5).
• Plan: sales made under a pre-established Rule 10b5-1 trading plan adopted 8/8/2023 (F1).
• Shares owned after transaction: not disclosed in the excerpt; see the full Form 4 for post-transaction holdings.

Context

• This was an option exercise followed by same-day open-market sales (a common cashless exercise/sell-to-cover pattern). Because the sales were executed under a 10b5-1 plan, they were pre-arranged; the footnotes provide price ranges and the filer’s offer to furnish exact trade-by-trade details on request. The activity appears routine for converting vested derivatives to cash rather than an open-market purchase (which is typically seen as a bullish signal).