Netflix (NASDAQ:NFLX) Shares Down 2.1% - Here's Why

Key Points

• Netflix shares fell 2.1% in mid-day trading, with the stock touching $75.71 and trading below its prior close of $77.65 on lighter-than-average volume.
• Despite the weakness, recent commentary has been broadly constructive, with bullish coverage pointing to value after the pullback and potential catalysts such as ad growth, live sports, and the upcoming July 16 earnings report.
• Analyst sentiment remains favorable overall: Netflix has a Moderate Buy consensus rating and a consensus price target of $114.26, even as some analysts trimmed targets and a bearish note warned about an engagement problem from shows losing viewers after early seasons.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares were down 2.1% during mid-day trading on Monday . The company traded as low as $75.71 and last traded at $76.02. 40,668,938 shares were traded during mid-day trading, a decline of 10% from the average session volume of 45,387,129 shares. The stock had previously closed at $77.65.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several bullish commentary pieces argue Netflix is attractively valued after its pullback and could rebound after its July 16 earnings report, with investors focusing on ad growth, live sports, and other new revenue drivers. 3 Reasons to Load Up on Netflix Stock Before July 16
• Positive Sentiment: Netflix was also highlighted on CNBC’s “Final Trades,” suggesting some market participants still see the stock as a favorable idea near term. Netflix, Alphabet, Nike And A Consumer Defensive Stock On CNBC’s ‘Final Trades’
• Positive Sentiment: Some recent coverage says Netflix has benefited from multiple tailwinds, reinforcing the view that its underlying business remains supported despite the share-price weakness. Netflix (NFLX) Gained From Multiple Tailwinds
• Neutral Sentiment: Netflix is drawing attention for a new “Little House on the Prairie” adaptation, which adds to its content pipeline but is not a clear near-term stock catalyst on its own. Netflix nods to nostalgia with new 'Little House on the Prairie' TV series
• Negative Sentiment: A bearish note says Netflix is facing an engagement problem because some of its biggest shows are losing viewers after early seasons, raising concerns about content retention and longer-term growth. Netflix (NFLX) Has a Second-Season Problem as Big Shows Lose Viewers, Shares Fall

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Rosenblatt Securities cut their price target on Netflix from $96.00 to $95.00 and set a "neutral" rating for the company in a report on Friday, April 17th. President Capital upped their price target on shares of Netflix from $133.00 to $134.00 and gave the company a "buy" rating in a research note on Tuesday, March 31st. JPMorgan Chase & Co. reissued a "buy" rating on shares of Netflix in a report on Wednesday, April 22nd. Piper Sandler restated an "overweight" rating and set a $115.00 price objective (up from $103.00) on shares of Netflix in a report on Friday, April 17th. Finally, TD Cowen reiterated a "buy" rating on shares of Netflix in a research note on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $114.26.

Netflix Price Performance

The company has a fifty day simple moving average of $83.46 and a two-hundred day simple moving average of $88.25. The stock has a market capitalization of $320.11 billion, a price-to-earnings ratio of 24.55, a PEG ratio of 0.99 and a beta of 1.52. 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 issued its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping 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 for the quarter, compared to analysts' expectations of $12.17 billion. During the same quarter last year, the business earned $6.61 earnings per share. Netflix'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. As a group, equities research analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the sale, the chief executive officer directly owned 120,931 shares of the company's stock, valued at approximately $10,725,370.39. This trade represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Reed Hastings sold 386,700 shares of Netflix stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director directly owned 3,940 shares in the company, valued at $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 899,839 shares of company stock worth $80,141,661 over the last 90 days. 1.24% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Checchi Capital Advisers LLC lifted its holdings in shares of Netflix by 875.7% in the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network's stock worth $2,920,000 after buying an additional 27,951 shares in the last quarter. Contravisory Investment Management Inc. raised its position in shares of Netflix by 837.2% in the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network's stock worth $10,443,000 after buying an additional 99,496 shares in the last quarter. BNC Wealth Management LLC boosted its stake in Netflix by 991.3% during the fourth quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network's stock valued at $3,866,000 after buying an additional 37,451 shares during the period. Crew Capital Management Ltd grew its position in Netflix by 1,021.9% during the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network's stock worth $847,000 after buying an additional 8,226 shares in the last quarter. Finally, Family Capital Trust Co grew its position in Netflix by 20,869.5% during the fourth quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network's stock worth $2,576,000 after buying an additional 27,339 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.