Netflix (NASDAQ:NFLX) Sets New 52-Week Low - Time to Sell?

Key Points

• Netflix hit a new 52-week low, falling to as low as $74.32 and trading down about 5.3% amid elevated volume. The move comes as the stock sits well below its 50-day and 200-day moving averages.
• Despite the weak share price, recent fundamentals were solid: Netflix beat quarterly EPS and revenue estimates, posted 16.2% year-over-year revenue growth, and maintained strong profitability. Analysts still see upside potential, with a consensus rating of Moderate Buy.
• Investor concerns remain because Netflix has missed out on multiple media deals and some believe the stock still looks expensive relative to future growth. Insider selling has also been notable, including sales by a director and the CFO over the past few months.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) reached a new 52-week low on Monday . The stock traded as low as $74.32 and last traded at $74.2890, with a volume of 18849830 shares. The stock had previously closed at $77.38.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix expanded its exclusive video podcast partnership with iHeartMedia, adding more iHeartPodcasts as video shows on the platform, which could support engagement and content growth. Netflix Expands Video Podcast Partnership with iHeartMedia
• Positive Sentiment: Wall Street analysts continue to present a constructive view on Netflix, helping offset weakness by suggesting the stock may still have recovery potential despite the recent selloff. Brokers Suggest Investing in Netflix (NFLX)
• Positive Sentiment: Netflix’s recent quarterly results were strong, with earnings and revenue beating expectations, which supports the case that the underlying business remains healthy even as the share price weakens.
• Positive Sentiment: Some commentary highlights that Netflix is making a disciplined, potentially value-accretive acquisition by buying the Radford Studio Center, which could improve its long-term content-production capabilities. Netflix Finally Makes an Acquisition That Wall Street Actually Likes
• Neutral Sentiment: Articles discussing Ted Sarandos’ reading habits are more of a leadership profile than a stock-moving development, so they are unlikely to materially affect NFLX shares. Netflix Co-CEO Ted Sarandos Doesn’t Bother With Management Books
• Negative Sentiment: Recent reports say Netflix has lost out on multiple media deals, fueling concern that competition is intensifying and that the company may be missing opportunities to expand beyond its core streaming business. Down 17%, Is Netflix a Buy After Walking Away From Warner Bros. and Roku?
• Negative Sentiment: Investor concern is also being driven by the view that Netflix’s stock remains expensive relative to slower future growth, especially after its valuation has compressed from prior highs. Is Netflix Stock Cheap or Overvalued? Here's What Investors Need to Know.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on NFLX. Bank of America reaffirmed a "buy" rating and issued a $125.00 target price on shares of Netflix in a research report on Monday, May 18th. Cfra raised Netflix from a "hold" rating to a "buy" rating and set a $115.00 price objective for the company in a research note on Friday, March 6th. Wells Fargo & Company began coverage on Netflix in a research report on Monday, March 9th. They set an "equal weight" rating and a $105.00 price objective for the company. China Renaissance upped their target price on Netflix from $90.00 to $100.00 and gave the company a "hold" rating in a report on Friday, April 17th. Finally, Jefferies Financial Group decreased their price target on shares of Netflix from $128.00 to $110.00 and set a "buy" rating for the company in a report on Wednesday, June 10th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $114.26.

Netflix Trading Down 5.3%

The company has a market cap of $308.61 billion, a price-to-earnings ratio of 23.68, a price-to-earnings-growth ratio of 0.98 and a beta of 1.50. The company's 50 day moving average price is $88.88 and its 200 day moving average price is $90.01. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. Netflix's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Research analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Buying and Selling

In other news, Director Bradford L. Smith sold 35,990 shares of the company's stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the sale, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. This represents a 31.11% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $6,563,353.65. This represents a 11.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 1,349,019 shares of company stock valued at $123,105,721. 1.24% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Institutional investors and hedge funds have recently modified their holdings of the company. First Financial Corp IN boosted its holdings in Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 243 shares during the period. DiNuzzo Private Wealth Inc. increased its stake in shares of Netflix by 885.2% in the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock worth $25,000 after purchasing an additional 239 shares during the period. Turning Point Benefit Group Inc. lifted its position in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock worth $25,000 after purchasing an additional 268 shares during the last quarter. Imprint Wealth LLC bought a new stake in Netflix during the 3rd quarter valued at approximately $25,000. Finally, Cornerstone Financial Management LLC bought a new stake in Netflix during the 4th quarter valued at approximately $26,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Company Profile

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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