Netflix (NASDAQ:NFLX) Hits New 12-Month Low Following Insider Selling

Key Points

• Netflix shares hit a new 52-week low of $76.80 intraday (last at $77.29) after heavy insider selling — CEO Gregory K. Peters sold 27,312 shares at about $83.24 (≈$2.27M), reducing his stake ~18%, and other executives also disposed of shares.
• The stock is down roughly 3.8% amid elevated deal and regulatory risk — Paramount’s enhanced hostile bid for Warner and activist pressure (Ancora) are increasing execution uncertainty and near-term volatility for NFLX.
• Despite the pullback, Netflix beat quarterly revenue and EPS estimates (revenue $12.05B; EPS $0.56) and carries a consensus analyst rating of Moderate Buy with an average target of $116.08, though negative narratives and insider sales could cap a recovery.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday following insider selling activity. The stock traded as low as $76.80 and last traded at $77.2860, with a volume of 15893653 shares. The stock had previously closed at $79.62.

Specifically, insider Cletus R. Willems sold 3,136 shares of the stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $82.67, for a total transaction of $259,253.12. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $83.24, for a total transaction of $2,273,450.88. Following the transaction, the chief executive officer directly owned 122,140 shares in the company, valued at approximately $10,166,933.60. The trade was a 18.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other news, insider David A. Hyman sold 5,727 shares of the business's stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $81.06, for a total transaction of $464,230.62. Following the completion of the sale, the insider owned 316,100 shares of the company's stock, valued at $25,623,066. The trade was a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Wall Street Analyst Weigh In

NFLX has been the topic of a number of research reports. Huber Research lowered shares of Netflix to a "buy" rating in a research note on Friday, December 5th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $98.00 price target (up from $95.00) on shares of Netflix in a research note on Wednesday, January 21st. Susquehanna raised Netflix to a "positive" rating and set a $112.00 price objective for the company in a research note on Wednesday, January 21st. Weiss Ratings lowered Netflix from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, January 22nd. Finally, President Capital raised shares of Netflix from a "neutral" rating to a "buy" rating and set a $130.00 target price on the stock in a research note on Monday, November 3rd. One analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and seventeen have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $116.08.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Company fundamentals and buy‑the‑dip cases remain: Netflix beat January quarterly expectations (revenue and EPS growth) and several analyst pieces argue the pullback creates a longer‑term buying opportunity. Read More.
• Positive Sentiment: Heavy institutional positioning and recent reported buying have left the stock with sizable ownership from large funds — that can amplify any rebound if deal noise fades. Read More.
• Neutral Sentiment: Management and some coverage are attempting to calm markets by framing regulatory scrutiny as routine, but that doesn’t remove approval risk; watch DOJ/regulatory developments for clarity. Read More.
• Neutral Sentiment: Broader industry/legal headlines (trial testimony, sector commentary) keep volatility elevated but are not direct catalysts for NFLX fundamentals. Read More.
• Negative Sentiment: Paramount’s enhanced hostile bid materially raises deal execution risk for Netflix — Paramount added ticking fees and offered to pay Warner’s $2.8B termination fee, making a switch away from Netflix more plausible and pressuring NFLX. Read More.
• Negative Sentiment: Activist investor Ancora has built a sizable WBD stake and is urging Warner to engage with Paramount, increasing the odds of a contested outcome and near‑term volatility for Netflix. Read More.
• Negative Sentiment: Recent insider selling (CEO Gregory Peters, CFO Spencer Neumann and others, plus the Cletus Willems sale) is adding to negative sentiment — large executive sales can be seen as liquidity-taking or signal concerns about valuation / deal timing. Read More. Read More.
• Negative Sentiment: Analyst caution and negative media narratives about the deal payoff and valuation are keeping selling pressure and could limit a recovery until deal clarity emerges. Read More.

Netflix Stock Down 3.8%

The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19. The firm's 50 day moving average price is $89.68 and its two-hundred day moving average price is $107.56. The firm has a market cap of $323.37 billion, a price-to-earnings ratio of 30.58, a P/E/G ratio of 1.46 and a beta of 1.71.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01. Netflix had a return on equity of 43.26% and a net margin of 24.30%.The firm had revenue of $12.05 billion during the quarter, compared to the consensus estimate of $11.97 billion. During the same period in the prior year, the business earned $0.43 EPS. The firm's revenue was up 17.6% compared to the same quarter last year. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, sell-side analysts forecast that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Netflix

A number of large investors have recently bought and sold shares of NFLX. Marsico Capital Management LLC increased its stake in shares of Netflix by 810.8% during the fourth quarter. Marsico Capital Management LLC now owns 1,268,446 shares of the Internet television network's stock worth $118,929,000 after acquiring an additional 1,129,181 shares during the period. Andina Capital Management LLC lifted its position in Netflix by 855.9% in the fourth quarter. Andina Capital Management LLC now owns 7,074 shares of the Internet television network's stock valued at $663,000 after purchasing an additional 6,334 shares during the period. Barings LLC boosted its holdings in Netflix by 698.2% in the 4th quarter. Barings LLC now owns 2,267 shares of the Internet television network's stock valued at $213,000 after purchasing an additional 1,983 shares in the last quarter. Andra AP fonden increased its position in Netflix by 2,138.1% during the 4th quarter. Andra AP fonden now owns 664,710 shares of the Internet television network's stock worth $62,323,000 after purchasing an additional 635,010 shares during the period. Finally, Cutler Investment Counsel LLC increased its position in Netflix by 1,158.4% during the 4th quarter. Cutler Investment Counsel LLC now owns 4,870 shares of the Internet television network's stock worth $457,000 after purchasing an additional 4,483 shares during the period. Hedge funds and other institutional investors own 80.93% of the company's stock.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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