Why These Insider Sales Shouldn't Worry Netflix Investors

Netflix (NASDAQ: NFLX  ) insiders are selling more shares than they used to. Some investors, like Foolish consumer goods specialist Blake Bos, worry that it might be a sign of rough waters ahead.

On the other hand, Fool contributor Anders Bylund is not particularly concerned about Netflix insider sales, even though he owns shares in the company. For one, insiders are investors too and perfectly entitled to take the occasional profit. For another, CEO Reed Hastings is basically forced to convert some old options contracts these days. Third, Hastings' compensation structure has been set up to align his interests with long-term shareholders, and these sales are an extension of that popular strategy.

There's nothing wrong with revisiting your investment assumptions, but this particular event turns out to be a non-event. Get all the juicy detail in this video, then share your own views in the comments box below.

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Comments from our Foolish Readers

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  • Report this Comment On May 11, 2013, at 2:08 AM, MoneyandPolitics wrote:

    Is this what The Motley Fool considers analysis? If so, contact me directly because this is terrible and you deserve to be presenting better information.

    This article is an awful form of analysis at best, and completely irresponsible at worst.

    I could have had the same conversation with the utterly unqualified Anders back in 11/12 and would have been killed if I were operating on a short duration and taking his advice.

  • Report this Comment On May 11, 2013, at 2:33 PM, yankegil wrote:

    WHEN TOP OFFICERS UNLOAD LIKE

    SARANDOS 80,000 SH

    HYMAN

    THEY DISTROY THEIR DOUBLE TALK OF HOW

    GREAT THE FUTURE OF NFLX IS.... WHY SELL

    NOW IF THE FUTURE LOOKS SO GREAT AFTER

    ALL 80000 SHARES IS A LOT OF FUTURE BUCKS

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