Should You Sell Netflix Inc (NASDAQ:NFLX) After Icahn’s Exit?

Posted by Lynn Eisler October 23, 2013 0 Comment 915 views

Carl Icahn, the billionaire activist investor has made a pretty penny by cashing-in on the 457% gain that Netflix, Inc (NASDAQ:NFLX) shares have made since the time he acquired a 9% stake in the company, which was barely 14-months ago. Icahn had purchased the shares at the average-price of $58/share and has raked in profits in the range of $700-$800 million on the 3M shares that he sold-off over a period of 10 days, since 10 Oct, as per an SEC filing.

Big profits

The larger chunk of the sale took place when Icahn sold 2.4M shares at a price of $341.44 for a total amount of $819 million. This particular sale was made on Tuesday, and it alone brought in a profit of approximately $645M. The billionaire still has a 4.5% stake in Netflix, Inc (NASDAQ:NFLX) which has dropped by 9.4% since June. That was when he had made information about his holdings, publicly known.

Luck takes Icahn a long way

Icahn Enterprises, which is Icahn’s company has around $29B in assets. He said that he was lucky enough to make a sizeable 457% total return in a matter if 14 months and that it was the perfect time to pull back a little , in terms of his holdings. In a tweet that he posted after the Sec filing, he said that he wanted to thank Ted Sarandos and Reed Hastings as well as the entire Netflix, Inc (NASDAQ:NFLX) team for the great job that they had done and he thanked Kevin Spacey as well.

Tuesday’s trading

In Tuesday’s trading, Netflix, Inc (NASDAQ:NFLX) dropped by 9.15%. The opening price of the shares was $387.84, which climbed to an intraday high of $389.16 and dipped to a close of $322.52. Approximately 25.87 million shares were traded on Tuesday while an average volume of 3.50 million shares were traded over a 30 day period. The 52-week low of Netflix, Inc (NASDAQ:NFLX) shares is $57.40 and its 52-week high is $389.16.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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