Netflix (NASDAQ:NFLX) Shares Down 1.1% on Insider Selling

Key Points

• Director Reed Hastings sold 407,550 shares under a pre-arranged Rule 10b5-1 plan for about $37.96 million, cutting his ownership by 99.04%, and the stock dipped ~1.1% to roughly $91 on the news.
• Netflix posted a strong quarter, reporting $1.23 EPS versus $0.76 expected and $12.25 billion in revenue (up 16.2% YoY), with Q2 guidance of $0.78 EPS.
• Analyst sentiment remains mostly positive: MarketBeat shows a "Moderate Buy" consensus with an average price target of $114.82 and the majority of analysts assigning Buy ratings.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) fell 1.1% during trading on Monday following insider selling activity. The stock traded as low as $90.89 and last traded at $91.0470. 25,502,407 shares were traded during trading, a decline of 46% from the average session volume of 47,225,813 shares. The stock had previously closed at $92.06.

Specifically, Director Reed Hastings sold 407,550 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the transaction, the director owned 3,940 shares in the company, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

NFLX has been the subject of several research analyst reports. Loop Capital set a $104.00 price objective on Netflix in a report on Tuesday, January 27th. Guggenheim set a $120.00 target price on shares of Netflix and gave the company a "buy" rating in a research note on Friday, April 17th. Canaccord Genuity Group set a $125.00 price target on shares of Netflix and gave the stock a "buy" rating in a research note on Wednesday, January 21st. HSBC boosted their price objective on shares of Netflix from $106.00 to $114.00 and gave the company a "buy" rating in a report on Friday, April 10th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on shares of Netflix from $98.00 to $100.00 and gave the company a "hold" rating in a research report on Tuesday, April 14th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and fifteen have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $114.82.

Netflix Stock Performance

The business has a 50-day simple moving average of $94.81 and a 200 day simple moving average of $96.77. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The firm has a market cap of $383.38 billion, a PE ratio of 29.41, a PEG ratio of 1.18 and a beta of 1.55.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company had revenue of $12.25 billion during the quarter, compared to the consensus estimate of $12.17 billion. During the same period in the previous year, the company posted $6.61 EPS. The firm's revenue was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities research analysts forecast that Netflix, Inc. will post 3.56 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of NFLX. V2 Financial group LLC raised its stake in Netflix by 40.4% during the 1st quarter. V2 Financial group LLC now owns 8,623 shares of the Internet television network's stock valued at $829,000 after purchasing an additional 2,483 shares during the period. WJ Financial Advisors LLC grew its holdings in Netflix by 13.9% during the 1st quarter. WJ Financial Advisors LLC now owns 7,999 shares of the Internet television network's stock valued at $769,000 after buying an additional 979 shares in the last quarter. Center for Financial Planning Inc. raised its position in shares of Netflix by 14.4% during the first quarter. Center for Financial Planning Inc. now owns 5,550 shares of the Internet television network's stock valued at $534,000 after buying an additional 700 shares during the last quarter. HBW Advisory Services LLC lifted its holdings in shares of Netflix by 9.6% in the first quarter. HBW Advisory Services LLC now owns 25,386 shares of the Internet television network's stock worth $2,441,000 after buying an additional 2,230 shares in the last quarter. Finally, Nadler Financial Group Inc. lifted its holdings in shares of Netflix by 3.2% in the first quarter. Nadler Financial Group Inc. now owns 13,963 shares of the Internet television network's stock worth $1,343,000 after buying an additional 433 shares in the last quarter. 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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