The SEC says the software engineers were part of a ring that made $3.1 million in illicit profits based on tips about Netflix subscriber growth.
The streaming giant's shares jumped 12% after it indicated it would return any excess cash to shareholders through buybacks.
As "consumers get through the initial shock of COVID and social restrictions," Netflix sees subscriber growth slowing to 2.5 million in the third quarter.
The cloud service company's stock topped the IPO price of $21 per share for the first time since September.
Netflix's "operations abroad look as promising as ever ... while clouds are beginning to gather in the company's home market."
The quarter also beat the company's expectations for subscriber growth, gross margins and operating profit.
“Netflix's continued subscription price hikes might finally have reached the end of some customers' patience in the U.S."
The company's shares fell 3.8% on its earnings report but it is now "approaching 50% penetration of U.S. TV households."
The streaming giant's strong Q3 “serves as a comeback after it failed to meet its own performance predictions in Q2."
The company suggests the lower-than-expected subscriber growth in Q2 was a temporary blip but analysts fear the quality of its programming has declined.
