Netflix (NASDAQ:NFLX) Shares Down 4% - What's Next?

Key Points

• Netflix shares have experienced a 4% drop in mid-day trading, reaching a price of $1,197.79 compared to a previous close of $1,247.71.
• Analysts' recommendations for Netflix include a range of ratings, with one Strong Buy, twenty-two Buy, ten Hold, and three Sell; the average target price is $1,317.58.
• Netflix reported a 15.9% year-over-year revenue increase with earnings per share of $7.19, surpassing estimates and solidifying its positive outlook for FY 2025.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price dropped 4% during mid-day trading on Thursday . The stock traded as low as $1,193.39 and last traded at $1,197.79. Approximately 3,409,092 shares were traded during mid-day trading, a decline of 15% from the average daily volume of 4,007,053 shares. The stock had previously closed at $1,247.71.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. JPMorgan Chase & Co. increased their price objective on Netflix from $1,230.00 to $1,300.00 and gave the company a "neutral" rating in a report on Friday, July 18th. Canaccord Genuity Group restated a "buy" rating on shares of Netflix in a research note on Thursday, July 10th. Piper Sandler lifted their price objective on shares of Netflix from $1,400.00 to $1,500.00 and gave the company an "overweight" rating in a report on Friday, July 18th. Wolfe Research set a $1,340.00 target price on Netflix and gave the company an "outperform" rating in a research report on Friday, May 16th. Finally, Zacks Research downgraded Netflix from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 1st. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $1,317.58.

Netflix Price Performance

The stock has a market cap of $511.40 billion, a PE ratio of 51.28, a PEG ratio of 2.13 and a beta of 1.60. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.58. The business's 50-day simple moving average is $1,222.12 and its 200-day simple moving average is $1,128.51.

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

Insider Buying and Selling

In related news, Director Reed Hastings sold 25,959 shares of Netflix stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $1,207.71, for a total transaction of $31,350,943.89. Following the transaction, the director owned 394 shares in the company, valued at approximately $475,837.74. The trade was a 98.50% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Spencer Adam Neumann sold 2,601 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $1,162.40, for a total value of $3,023,402.40. Following the completion of the transaction, the chief financial officer directly owned 3,691 shares in the company, valued at approximately $4,290,418.40. This represents a 41.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 89,348 shares of company stock valued at $109,498,489 in the last 90 days. Corporate insiders own 1.37% of the company's stock.

Institutional Trading of Netflix

Large investors have recently made changes to their positions in the business. Brighton Jones LLC lifted its holdings in Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after purchasing an additional 257 shares in the last quarter. Revolve Wealth Partners LLC lifted its holdings in Netflix by 16.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after acquiring an additional 144 shares during the last quarter. NorthRock Partners LLC lifted its position in Netflix by 169.2% in the fourth quarter. NorthRock Partners LLC now owns 8,713 shares of the Internet television network's stock valued at $7,766,000 after buying an additional 5,476 shares during the last quarter. Night Owl Capital Management LLC lifted its holdings in shares of Netflix by 3.2% in the 4th quarter. Night Owl Capital Management LLC now owns 34,468 shares of the Internet television network's stock worth $30,722,000 after acquiring an additional 1,072 shares during the last quarter. Finally, Nan Shan Life Insurance Co. Ltd. lifted its stake in Netflix by 21.1% during the fourth quarter. Nan Shan Life Insurance Co. Ltd. now owns 50,037 shares of the Internet television network's stock worth $44,599,000 after purchasing an additional 8,734 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

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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