HASTINGS REED 4
4 · NETFLIX INC · Filed May 4, 2026
Research Summary
AI-generated summary of this filing
Netflix (NFLX) Director Reed Hastings Sells Shares After Exercising Options
What Happened
Reed Hastings, a director of Netflix, exercised options for 407,550 shares at $9.74 per share (cost ~$3.97M) on 2026-05-01 and then sold large blocks of Netflix stock in open-market transactions the same day, generating total gross proceeds of approximately $37.96M. The filing also reports a small award/acquisition of 679 shares. Overall, this sequence reads as an option exercise followed by immediate sales (a cashless-like outcome), so the dominant market signal here is a large sale.
Key Details
- Transaction date: 2026-05-01; Form filed 2026-05-04 (no late filing noted in the provided data).
- Option exercise: 407,550 shares exercised at $9.74 each; aggregate exercise cost reported $3,968,722.
- Open-market sales (same day):
- 188,425 shares at a weighted avg $92.28 — proceeds $17,388,424 (prices ranged $91.91–$92.9049).
- 105,791 shares at a weighted avg $93.54 — proceeds $9,895,976 (prices ranged $92.9077–$93.9036).
- 113,334 shares at a weighted avg $94.17 — proceeds $10,672,538 (prices ranged $93.9052–$94.70).
- Total gross sale proceeds ≈ $37,956,938.
- Additional items: 407,550 shares are also shown as disposed as a derivative conversion (reported at $0.00) and 679 shares were acquired as an award (reported at $0.00).
- Plan and capacity: Sales executed pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on 08/08/2023. Filing shows transactions reported in the capacity of Trustee of the Hastings-Quillin Family Trust.
- Shares owned after transaction: not specified in the provided excerpt.
Context
- Derivative explanation: The filing reflects an option exercise (code M) for 407,550 shares followed by open-market sales of stock; this is commonly a cashless exercise pattern (exercise + immediate sale) rather than a buy-and-hold purchase.
- 10b5-1 plan: Because trades were made under a pre-established 10b5-1 plan, the timing was likely pre-authorized and may not reflect contemporaneous changes in the insider’s view of the company.
- For retail investors: purchases (buys) tend to be more informative about insider conviction; this filing is primarily a large, planned sale after option exercise.
Insider Transaction Report
Form 4
NETFLIX INCNFLX
HASTINGS REED
Director
Transactions
- Exercise/Conversion
Common Stock
[F1]2026-05-01$9.74/sh+407,550$3,968,722→ 411,490 total - Sale
Common Stock
[F1][F2]2026-05-01$92.28/sh−188,425$17,388,424→ 223,065 total - Sale
Common Stock
[F1][F3]2026-05-01$93.54/sh−105,791$9,895,976→ 117,274 total - Sale
Common Stock
[F1][F4]2026-05-01$94.17/sh−113,334$10,672,538→ 3,940 total - Exercise/Conversion
Non-Qualified Stock Option (right to buy)
[F1]2026-05-01−407,550→ 0 totalExercise: $9.74From: 2016-09-01Exp: 2026-09-01→ Common Stock (407,550 underlying) - Award
Non-Qualfied Stock Option (right to buy)
2026-05-01+679→ 679 totalExercise: $92.06From: 2026-05-01Exp: 2036-05-01→ Common Stock (679 underlying)
Holdings
- 21,159,576(indirect: By Trust)
Common Stock
[F5]
Footnotes (5)
- [F1]Transaction made pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on 8/8/2023.
- [F2]This transaction was executed in multiple trades at prices ranging from $91.91 to $92.9049. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- [F3]This transaction was executed in multiple trades at prices ranging from $92.9077 to $93.9036. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- [F4]This transaction was executed in multiple trades at prices ranging from $93.9052 to $94.70. The price reported above reflects the weighted average sale price. The reporting person hereby undertakes to provide upon request to the SEC staff, the issuer or a security holder of the issuer full information regarding the number of shares and prices at which the transaction was effected.
- [F5]As Trustee of the Hastings-Quillin Family Trust.
Signature
Veronique Bourdeau, Authorized Signatory For: Reed Hastings|2026-05-04