HASTINGS REED 4

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.