5 Overvalued Stocks Insiders are Dumping Now

3. Netflix Inc (NASDAQ:NFLX)

Number of Hedge Fund Investors: 89

Netflix Inc (NASDAQ:NFLX) co-founder and Chairman of the board of directors Reed Hastings on April 1 sold 20,566 shares of the streaming company at $610.42 per share. Since then the stock price is almost flat. Over the past one year Netflix Inc (NASDAQ:NFLX) shares have gained about 76%, with the stock’s PE ratio now touching 51. Wedbush Securities recently removed Netflix Inc (NASDAQ:NFLX) from its Best Ideas list, citing high expectations which would make it difficult for Netflix Inc (NASDAQ:NFLX) to impress investors. Wedbush said some growth drivers of Netflix Inc (NASDAQ:NFLX) are already priced in. However, the investment firm maintained its Outperform rating on the stock.

Sequoia Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its fourth quarter 2023 investor letter:

“Exits last year included Netflix, Inc. (NASDAQ:NFLX), Bank of America and Micron. We opportunistically added to our Netflix position in late 2022, near what turned out to be the lows. We sold our shares in stages over the course of last year as the stock price recovered and the valuation of the business rose dramatically.”