HASTINGS REED 4

What Happened
Reed Hastings, a director of Netflix (NFLX), exercised 386,700 option-based shares and immediately sold all 386,700 shares on June 1, 2026. The exercise cost reported was $3,968,702 (386,700 @ $10.26). The sales were executed in two blocks: 332,917 shares sold at a weighted average price of $85.85 for $28,579,559, and 53,783 shares sold at a weighted average price of $86.73 for $4,664,476 — total sale proceeds $33,244,035. Net of the exercise cost, the transaction realized roughly $29.28 million. The filing also shows a 386,700-share derivative disposition entry (reflecting the exercised derivative) and a separate grant of 728 shares (no cash price reported).

Key Details

• Transaction date: June 1, 2026 (reported in Form 4 filed 2026-06-02).
• Exercise: 386,700 shares exercised (code M) at $10.26; reported cost $3,968,702.
• Sales: 332,917 shares sold at weighted avg $85.85 (range $85.33–$86.32 per footnote F2); 53,783 shares sold at weighted avg $86.73 (range $86.33–$87.2203 per F3). Total proceeds $33,244,035.
• Additional: 728 shares acquired as a grant/award (A) at $0.00; derivative disposal line shows 386,700 @ $0.00 reflecting the exercised options.
• Plan/notes: Trades were made pursuant to a Rule 10b5-1 trading plan adopted 8/8/2023 (F1). Some trades executed in multiple fills — weighted averages and price ranges disclosed (F2, F3). Transaction noted “As Trustee of the Hastings-Quillin Family Trust” (F4).
• Shares owned after transaction: not disclosed in the excerpt of the filing.
• Timeliness: filing date 2026-06-02 for transactions on 2026-06-01; no late-filing flag indicated.

Context
This was effectively a same-day exercise-and-sell (cashless-style) transaction: options were exercised and the resulting shares were sold the same day, which is common for covering exercise cost and tax obligations. The use of a pre-established 10b5-1 plan means trades were pre-arranged and are generally considered routine execution under that plan rather than opportunistic timing based on inside information. The small grant of 728 shares is minimal relative to the exercised/sold block and does not materially change the picture.