Netflix co-founder and co-CEO Reed Hastings just made his first purchase of the company’s shares on the open market.
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Netflix ‘s stock has slumped in 2022, and co-founder and co-CEO Reed Hastings disclosed that he bought $20 million of shares of the streaming giant this past week.
Netflix stock (ticker: NFLX) has tumbled 36% so far this year, while the S&P 500 index has slipped 7%. Investors were disheartened to see new subscriptions come up short when the company reported fourth-quarter earnings on Jan. 20, throwing into question Netflix’s ability to grow. Bill Ackman’s Pershing Square on late Wednesday, Jan. 26, disclosed that it purchased 3.1 million shares.
“We believed the opportunity to invest in Netflix at current prices offered a more compelling risk/reward and likely greater, long-term profits for the funds,” wrote Ackman in a letter to investors.
Hastings paid $20 million over Jan. 27 and 28 for 51,440 shares, a per-share average price of $388.83, according to a form he filed with the Securities and Exchange Commission. Hastings made the purchase through a trust that now owns 5.2 million shares.
Netflix didn’t immediately respond to a request to make Hastings available for comment. This is his first open-market purchase of Netflix stock since the shares went public in 2002.
Inside Scoop is a regular Barron’s feature covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.
