Netflix (NASDAQ:NFLX) Shares Down 2.9% After Insider Selling

Key Points

• Netflix shares fell 2.9% after insider selling, with the stock trading around $83.36 after touching an intraday low of $85.32.
• Director Reed Hastings sold 386,700 shares worth about $33.2 million in a pre-arranged Rule 10b5-1 plan, reducing his ownership by about 99%.
• Despite the pullback, analysts remain generally upbeat: Netflix has a Moderate Buy consensus, with an average price target of $114.82, and the company recently beat earnings and revenue estimates.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares traded down 2.9% during trading on Tuesday following insider selling activity. The company traded as low as $85.32 and last traded at $83.3560. 32,656,061 shares were traded during trading, an increase of 3% from the average session volume of 31,739,898 shares. The stock had previously closed at $85.85.

Specifically, Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction that occurred on 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 transaction, the director owned 3,940 shares of the company's stock, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. Moffett Nathanson lifted their price target on shares of Netflix from $115.00 to $120.00 and gave the company a "buy" rating in a report on Tuesday, April 14th. Needham & Company LLC reaffirmed a "buy" rating on shares of Netflix in a report on Friday, April 17th. Pivotal Research set a $96.00 price target on shares of Netflix and gave the company a "hold" rating in a report on Friday, April 17th. Rosenblatt Securities lowered their price target on shares of Netflix from $96.00 to $95.00 and set a "neutral" rating on the stock in a report on Friday, April 17th. Finally, Seaport Research Partners lifted their price target on shares of Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have given a Hold rating to the stock. According to data from MarketBeat.com, Netflix has an average rating of "Moderate Buy" and an average price target of $114.82.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is being highlighted as potentially undervalued after a steep decline, with some analysts and commentators suggesting the stock may now look more like a value opportunity than a pure growth story. Down 28%, Netflix Stock Is Suddenly a Bargain
• Positive Sentiment: Recent coverage points to improving fundamentals, including raised free cash flow guidance and faster ad-tier growth, which could support future earnings and sentiment. Netflix Nearing 52-Week Low: Buy, Sell or Hold?
• Positive Sentiment: Netflix continues broadening its business model through live content and consumer product partnerships, which could open new revenue streams beyond subscriptions. A Look At Netflix (NFLX) Valuation As Live Content And Franchise Deals Broaden Its Business Model
• Neutral Sentiment: Media coverage about what to stream on Netflix in June may help keep the brand visible, but it is unlikely to materially move the stock on its own. Here’s what’s worth streaming in June on Netflix, Hulu, HBO Max and more
• Negative Sentiment: Director Reed Hastings sold 386,700 shares worth about $33.2 million, a large insider disposal that can weigh on investor sentiment even though it was made under a pre-arranged trading plan. SEC Form 4 filing

Netflix Stock Performance

The stock has a market cap of $351.00 billion, a P/E ratio of 26.92, a PEG ratio of 1.09 and a beta of 1.50. 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's 50-day moving average price is $93.00 and its 200-day moving average price is $93.09.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion for the quarter, compared to analysts' expectations of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company's revenue for the quarter was up 16.2% compared to the same quarter last year. During the same quarter last year, the business posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Sell-side analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Netflix

Several large investors have recently bought and sold shares of NFLX. Vanguard Group Inc. increased its position in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock worth $36,567,805,000 after purchasing an additional 351,493,659 shares during the last quarter. State Street Corp increased its position in Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC increased its position in Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors increased its position in Netflix by 859.1% during the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley increased its position in Netflix by 903.0% during the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock valued at $8,002,414,000 after acquiring an additional 76,840,318 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

Netflix Company Profile

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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