Netflix (NASDAQ:NFLX) Shares Down 2.9% - Time to Sell?

Key Points

• Netflix shares fell 2.9% to about $100.24 on Friday, with volume of ~132.4 million shares, which was roughly 229% above the average daily volume.
• The company reported a big EPS beat of $5.87 vs. $0.69 expected and revenue up 17.2% year‑over‑year to $11.32 billion (slightly below the $11.52B estimate), and set Q4 2025 guidance of 5.45 EPS.
• Wall Street sentiment is a consensus "Moderate Buy" with an average target of $134.54, while insiders have sold roughly 1.62 million shares (~$181.6M) over the last 90 days, leaving insider ownership at 1.37%.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price was down 2.9% during trading on Friday . The stock traded as low as $97.74 and last traded at $100.24. Approximately 132,430,985 shares traded hands during trading, an increase of 229% from the average daily volume of 40,292,453 shares. The stock had previously closed at $103.22.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on NFLX. KGI Securities raised shares of Netflix from a "neutral" rating to an "outperform" rating and set a $135.00 price target for the company in a research report on Monday, November 3rd. Evercore ISI reissued an "outperform" rating and issued a $138.00 target price on shares of Netflix in a report on Friday. Benchmark reissued a "hold" rating on shares of Netflix in a research report on Wednesday, October 22nd. Citigroup reaffirmed a "neutral" rating and set a $129.50 price target (up previously from $128.00) on shares of Netflix in a research report on Friday, October 3rd. Finally, UBS Group reissued a "buy" rating on shares of Netflix in a report on Wednesday, November 12th. Two research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $134.54.

Netflix Stock Down 2.9%

The company has a market capitalization of $424.75 billion, a PE ratio of 41.87, a P/E/G ratio of 1.54 and a beta of 1.71. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56. The firm has a 50 day simple moving average of $113.27 and a two-hundred day simple moving average of $119.25.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, topping the consensus estimate of $0.69 by $5.18. The firm had revenue of $11.32 billion during the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The company's revenue for the quarter was up 17.2% on a year-over-year basis. During the same period last year, the company earned $0.54 earnings per share. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Research analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Activity

In related news, CEO Theodore A. Sarandos sold 20,270 shares of the firm's stock in a transaction dated Tuesday, November 4th. The shares were sold at an average price of $109.21, for a total value of $2,213,646.16. Following the completion of the sale, the chief executive officer owned 151,680 shares in the company, valued at $16,564,669.44. This trade represents a 11.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Reed Hastings sold 421,760 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $117.19, for a total value of $49,426,897.92. Following the transaction, the director directly owned 3,940 shares of the company's stock, valued at approximately $461,736.48. This trade represents a 99.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,619,840 shares of company stock valued at $181,648,613 over the last ninety days. 1.37% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Netflix

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in Netflix by 0.4% during the third quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network's stock worth $46,183,983,000 after buying an additional 142,238 shares during the period. State Street Corp lifted its position in shares of Netflix by 2.1% during the 2nd quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock valued at $23,359,801,000 after acquiring an additional 360,604 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of Netflix by 2.7% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock worth $10,940,505,000 after acquiring an additional 304,399 shares in the last quarter. Geode Capital Management LLC grew its holdings in shares of Netflix by 2.4% in the 2nd quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network's stock worth $13,234,278,000 after acquiring an additional 229,182 shares during the period. Finally, Norges Bank purchased a new position in Netflix in the 2nd quarter valued at approximately $7,929,645,000. Institutional investors and hedge funds 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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