Redbox Stock on Wild Run Day After Going Public

Redbox, the venerable kiosk disc rental company transitioning to digital entertainment distribution, Oct. 26 saw its shares up more than 96% at $23.39 per share in early trading — the day after going public on the Nasdaq exchange. Shares fell minutes later to around $19 and then $17 after opening at $11.75 per share, with trading volume above 7.6 million shares and climbing.

Redbox Entertainment Inc. is the new corporate identity following the company’s previously-announced merger with Seaport Global Acquisition Corp., a special purpose acquisition company, or SPAC.

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At launch, Redbox had more than 45 million shares outstanding, including a majority held by former owner Apollo Capital Management, which acquired the disc vendor from Outerwall in 2016 for $1.6 billion.

SEC, Wash. State File Insider Trading Complaints Against Three Former Netflix Employees

The U.S. Securities and Exchange Commission and U.S. District Attorney for the state of Washington have filed separate criminal complaints against three former Netflix engineers who allegedly used non-public information on the streamer’s subscriber growth to generate $3 million in personal stock market gains.

Netflix’s subscriber growth has been a key driver in the SVOD pioneer’s skyrocketing market valuation and enrichment of shareholders. The service ended the most recent fiscal period with more than 209 million subscribers.

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The complaints, filed in federal court in Seattle, allege Sung Mo Jun, an engineer at Netflix from 2016 to 2017, tipped his brother, Joon Mo Jun, and accomplice Junwoo Chon in advance of quarterly earnings reports.

The complaint alleges that after Sung Mo Jun left Netflix, he continued to receive confidential sub growth data from Netflix employees Ayden Lee and Jae Hyeon Bae. The Jun brothers and Chon allegedly tried to cover their actions through cash kickbacks and encrypted messaging.

The SEC reportedly discovered the illegal actions after its internal software tracked the ongoing “improbably successful” stock trades.

Chon has pleaded guilty to the charges and is cooperating with officials. He awaits sentencing Dec. 3, according to Tess Gorman, Acting U.S. Attorney for the Western District of Washington. An insider trading conviction can bring up to 20 years in prison and $5 million fine.

“Insider trading is not a victimless crime,” Gorman said in a statement. “When someone on one side of the trade has non-public information, they have an advantage over the person on the other side — the person who ultimately loses money on their securities trade. The integrity of our financial markets demands a fair and level playing field.”

MoviePass Parent Selling More Shares, Stock Price Declines in Response

As expected, Helios and Matheson Analytics, the fiscally-challenged owner of MoviePass, July 10 announced an intent to sell shares of common stock, in addition to warrants to purchase shares of common stock.

HMNY didn’t say when the stock sale would be completed, but said any net proceeds from the offering would be used for general corporate purposes and its subsidiaries (i.e. MoviePass and related businesses).

The market responded by dropping HMNY’s stock value more than 9% (below 19 cents-per-share) in after-market trading.

The company’s stock has fallen more than 97% in the past 12 months as investors grow wary of MoviePass’ cash-deficit business model offering subscribers daily access to theatrical screenings for $9.95 monthly fee.

Earlier this month, HMNY issued a regulatory filing about the intent to raise $1.2 billion over the next three years. The company has proposed a reverse stock split to be voted upon July 23 at the shareholder meeting.

Netflix Stock Tops $400 For First Time

NEWS ANALYSIS — When Netflix recently announced an original content deal with former President Barack Obama and his wife Michelle, some conservative subscribers turned to social media calling for a boycott of the SVOD pioneer.

Apparently, Wall Street wasn’t paying attention.

Netflix’s stock June 19 closed up nearly 4% at a record $404.98 per share – the first time the service topped $400. Shares are up more than 110% this year with a market capitalization above $176 billion.

The result has some analysts revising Netflix’s stock price target ceiling to $500. GBH Insights, citing internal research, found that Netflix subscribers stream twice as much (10 hours) per week compared to Amazon Prime Video and Hulu (5 hours), according to MarketWatch.

PiperJaffray upped Netflix’s price target to $420 per share based on projections international subs will increase nearly 50% in the second quarter.

“Netflix is the leader in a [OTT video] category that contains massive multiyear growth potential,” analyst Michael Olson wrote in a note.

Research firm Monness, Crespi, Hardt & Co. increased Netflix’s stock price target to $460 from $375, despite the fact Disney is readying a branded SVOD service for 2019 launch.

“Given Netflix’s leadership position in the market, growing scale, rapid growth and subscription-based model, we believe investors will continue to pay a premium for the stock,” wrote analyst Brian White.

 

Netflix Stock Tops Record $300 Per Share

March 2 was a good day for Netflix shareholders. The SVOD pioneer’s stock reached an all-time high of $301.62 per share – after teasing the benchmark earlier in the week.

The 3.7% stock gain on the day resulted in $130.6 billion market capitalization – up 50% from $87.01 billion on Jan. 2.

Market capitalization is based on share price and number of shares outstanding. It generally represents the market’s view of a company’s stock value and is a determining factor in stock valuation.

In other words, Netflix is on fire. It is outspending all other media and streaming companies on original content, including feature-length movies.

Pay-TV operators that once shunned Netflix, believing TV Everywhere could neutralize the SVOD threat, now embrace the behemoth offering their subscribers direct access.

Indeed, Britain’s satellite operator Sky went one step further this week: offering Netflix as a quasi-channel, including side-by-side content selections.