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

Key Points

• Netflix's shares fell 1.7%, trading at $1,094.69 during mid-day on Friday, with trading volume up 50% from average levels.
• Several analysts have different target prices for Netflix, with Jefferies maintaining a buy rating at $1,500, while JPMorgan reduced its target from $1,300 to $1,275.
• The company's recent earnings report showed EPS of $5.87, missing the consensus estimate of $6.88, with quarterly revenue growth of 17.2% year-over-year.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price fell 1.7% during mid-day trading on Friday . The stock traded as low as $1,094.41 and last traded at $1,094.69. 5,983,720 shares traded hands during mid-day trading, an increase of 50% from the average session volume of 3,990,718 shares. The stock had previously closed at $1,113.59.

Analyst Ratings Changes

Several research firms have recently issued reports on NFLX. Jefferies Financial Group restated a "buy" rating and issued a $1,500.00 target price on shares of Netflix in a report on Wednesday. JPMorgan Chase & Co. lowered their target price on shares of Netflix from $1,300.00 to $1,275.00 and set a "neutral" rating for the company in a report on Wednesday. Citigroup restated a "neutral" rating and issued a $1,295.00 target price (up previously from $1,280.00) on shares of Netflix in a report on Friday, October 3rd. Loop Capital raised shares of Netflix from a "hold" rating to a "buy" rating and raised their price target for the stock from $1,150.00 to $1,350.00 in a research note on Wednesday, September 17th. Finally, Guggenheim reaffirmed a "buy" rating and issued a $1,450.00 price target on shares of Netflix in a research note on Wednesday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, Netflix currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,352.78.

Netflix Stock Down 1.7%

The company has a market cap of $465.16 billion, a PE ratio of 45.73, a P/E/G ratio of 1.89 and a beta of 1.59. The company's 50 day moving average is $1,210.10 and its 200 day moving average is $1,183.73. The company has a current ratio of 1.33, a quick ratio of 1.34 and a debt-to-equity ratio of 0.56.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 EPS for the quarter, missing the consensus estimate of $6.88 by ($1.01). The company had revenue of $11.51 billion during the quarter, compared to analysts' expectations of $11.52 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The company's quarterly revenue was up 17.2% on a year-over-year basis. During the same period in the prior year, the business earned $5.40 EPS. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS. As a group, analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 2,601 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $1,162.40, for a total transaction of $3,023,402.40. Following the transaction, the chief financial officer owned 3,691 shares of the company's stock, valued at approximately $4,290,418.40. This trade represents a 41.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 2,026 shares of the firm's stock in a transaction dated Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the transaction, the chief executive officer directly owned 12,781 shares in the company, valued at $14,793,240.64. This trade represents a 13.68% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 104,100 shares of company stock worth $122,710,980. 1.37% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Legacy Investment Solutions LLC purchased a new position in Netflix during the 2nd quarter valued at about $31,000. Retirement Wealth Solutions LLC purchased a new position in shares of Netflix in the 3rd quarter worth approximately $28,000. Stephens Consulting LLC grew its position in shares of Netflix by 150.0% in the 2nd quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock worth $33,000 after buying an additional 15 shares during the last quarter. Rossby Financial LCC purchased a new position in shares of Netflix in the 2nd quarter worth approximately $35,000. Finally, Steph & Co. grew its position in shares of Netflix by 188.9% in the 3rd quarter. Steph & Co. now owns 26 shares of the Internet television network's stock worth $31,000 after buying an additional 17 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

About Netflix

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.

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