Netflix (NASDAQ:NFLX) Stock Price Down 1.7% - What's Next?

Key Points

• Netflix shares decreased by 1.7%, trading around $1,207.78 with a volume decline of 22% compared to average trading volumes.
• Analysts have set new price targets for Netflix, with a consensus price target of $1,328.87 and a general rating of "Moderate Buy".
• Recent insider trading activity includes significant stock sales by CEO and director, with insiders having sold 89,348 shares valued at over $109 million in the last quarter.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price dropped 1.7% during trading on Thursday . The stock traded as low as $1,205.50 and last traded at $1,207.78. Approximately 3,123,733 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 3,998,066 shares. The stock had previously closed at $1,228.50.

Analysts Set New Price Targets

NFLX has been the subject of several recent research reports. Barclays restated a "sell" rating and set a $1,100.00 target price (up previously from $1,000.00) on shares of Netflix in a report on Wednesday, July 9th. Citigroup restated a "neutral" rating and issued a $1,250.00 price target (up from $1,020.00) on shares of Netflix in a research note on Thursday, May 29th. Jefferies Financial Group reiterated a "buy" rating on shares of Netflix in a research report on Thursday, September 11th. Morgan Stanley restated an "equal weight" rating on shares of Netflix in a report on Monday, July 21st. Finally, KeyCorp raised their price target on shares of Netflix from $1,070.00 to $1,390.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $1,328.87.

Netflix Stock Performance

The firm has a market capitalization of $521.98 billion, a PE ratio of 52.34, a P/E/G ratio of 2.07 and a beta of 1.60. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34. The company's fifty day simple moving average is $1,212.85 and its 200 day simple moving average is $1,137.88.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. The firm had revenue of $11.08 billion for the quarter, compared to the consensus estimate of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The company's revenue for the quarter was up 15.9% on a year-over-year basis. During the same period in the prior year, the firm posted $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. As a group, equities research analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider David A. Hyman sold 424 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $1,158.67, for a total value of $491,276.08. Following the completion of the sale, the insider owned 31,610 shares of the company's stock, valued at $36,625,558.70. This trade represents a 1.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Cletus R. Willems sold 238 shares of the firm's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $1,153.52, for a total value of $274,537.76. The disclosure for this sale can be found here. Insiders have sold a total of 89,348 shares of company stock valued at $109,498,489 over the last three months. Insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Netflix

A number of large investors have recently made changes to their positions in NFLX. Optima Capital LLC lifted its position in shares of Netflix by 3.5% during the 2nd quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock valued at $320,000 after buying an additional 8 shares in the last quarter. Unified Investment Management grew its position in Netflix by 1.7% in the 2nd quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock valued at $635,000 after acquiring an additional 8 shares during the last quarter. Plancorp LLC lifted its holdings in shares of Netflix by 0.6% in the 2nd quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock worth $1,711,000 after buying an additional 8 shares during the period. Five Oceans Advisors lifted its holdings in shares of Netflix by 1.1% in the 2nd quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock worth $1,006,000 after buying an additional 8 shares during the period. Finally, Old Port Advisors lifted its stake in shares of Netflix by 1.3% during the 2nd quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock worth $836,000 after purchasing an additional 8 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.