Why These Insider Sales Shouldn't Worry Netflix Investors

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Netflix 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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The article Why These Insider Sales Shouldn't Worry Netflix Investors originally appeared on Fool.com.

Fool contributor Anders Bylund owns shares of Google and Netflix, but he holds no other position in any company mentioned. Check out Anders' bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Apple, Oracle, Google, and Netflix. Motley Fool newsletter services have recommended buying shares of Google, Apple, and Netflix. The Motley Fool has a disclosure policyWe Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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