Netflix (NASDAQ:NFLX) Shares Down 1.8% - Here's Why

Key Points

• Netflix shares fell 1.8%, trading as low as $1,204.45 amidst a significant decline in trading volume, down 77% from average levels.
• Analysts maintain a consensus rating of "Moderate Buy" for Netflix, with target prices ranging from $1,140.00 to $1,500.00.
• Recent earnings showed Netflix outperforming expectations with $7.19 EPS and revenue of $11.08 billion, reflecting a year-over-year revenue growth of 15.9%.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) fell 1.8% during mid-day trading on Friday . The company traded as low as $1,204.45 and last traded at $1,209.25. 940,062 shares traded hands during trading, a decline of 77% from the average session volume of 4,065,603 shares. The stock had previously closed at $1,231.45.

Analyst Ratings Changes

Several research firms have weighed in on NFLX. Jefferies Financial Group reissued a "buy" rating on shares of Netflix in a research report on Tuesday, August 12th. Wolfe Research set a $1,340.00 target price on Netflix and gave the stock an "outperform" rating in a research report on Friday, May 16th. BMO Capital Markets reaffirmed an "outperform" rating and set a $1,425.00 target price (up from $1,200.00) on shares of Netflix in a research report on Tuesday, July 15th. Wedbush reaffirmed an "outperform" rating and set a $1,500.00 target price (up from $1,400.00) on shares of Netflix in a research report on Monday, July 14th. Finally, The Goldman Sachs Group boosted their price objective on Netflix from $1,000.00 to $1,140.00 and gave the company a "neutral" rating in a report on Wednesday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,297.66.

Netflix Price Performance

The stock has a market capitalization of $513.33 billion, a P/E ratio of 51.45, a PEG ratio of 2.06 and a beta of 1.59. The stock's fifty day moving average is $1,231.58 and its 200-day moving average is $1,116.03. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, beating the consensus estimate of $7.07 by $0.12. The business had revenue of $11.08 billion during the quarter, compared to analysts' expectations of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The firm's revenue was up 15.9% on a year-over-year basis. During the same quarter last year, the company earned $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current year.

Insider Activity

In other Netflix news, insider David A. Hyman sold 424 shares of the company's stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,158.67, for a total value of $491,276.08. Following the completion of the transaction, the insider directly owned 31,610 shares in the company, valued at approximately $36,625,558.70. This represents a 1.32% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Spencer Adam Neumann sold 685 shares of the stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $1,161.21, for a total transaction of $795,428.85. Following the transaction, the chief financial officer directly owned 3,691 shares in the company, valued at approximately $4,286,026.11. This represents a 15.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 123,163 shares of company stock valued at $151,917,174. Corporate insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Netflix

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Halbert Hargrove Global Advisors LLC increased its stake in shares of Netflix by 100.0% in the 1st quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock worth $25,000 after acquiring an additional 13 shares in the last quarter. Brown Shipley& Co Ltd bought a new stake in shares of Netflix in the fourth quarter worth approximately $27,000. Legacy Investment Solutions LLC bought a new stake in shares of Netflix in the second quarter worth approximately $31,000. Stephens Consulting LLC grew its stake in shares of Netflix by 150.0% in the second quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock worth $33,000 after acquiring an additional 15 shares during the period. Finally, Rossby Financial LCC bought a new stake in Netflix during the second quarter valued at approximately $35,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

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.

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