Netflix (NASDAQ:NFLX) Shares Down 4.9% Following Insider Selling

Key Points

• Shares of Netflix were trading down 4.9% mid-day after the market reacted to an insider sale, with volume up ~33% and the stock falling to as low as $102.03 (last $103.96 vs. prior close $109.35).
• Reed Hastings sold 375,470 shares at an average price of $108.43 for about $40.7 million, reducing his stake by 98.96% to 3,940 shares, according to an SEC filing.
• Analysts maintain a consensus rating of "Moderate Buy" on NFLX with an average price target of $133.90.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares traded down 4.9% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $102.03 and last traded at $103.96. 52,997,449 shares were traded during mid-day trading, an increase of 33% from the average session volume of 39,839,184 shares. The stock had previously closed at $109.35.

Specifically, Director Reed Hastings sold 375,470 shares of the company's stock in a transaction on Monday, December 1st. The shares were sold at an average price of $108.43, for a total value of $40,712,212.10. Following the completion of the sale, the director owned 3,940 shares in the company, valued at $427,214.20. This represents a 98.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Analyst Ratings Changes

Several analysts recently weighed in on NFLX shares. Benchmark restated a "hold" rating on shares of Netflix in a research report on Wednesday, October 22nd. Jefferies Financial Group reaffirmed a "buy" rating and issued a $150.00 price objective on shares of Netflix in a research note on Wednesday, October 22nd. Zacks Research downgraded Netflix from a "strong-buy" rating to a "hold" rating in a report on Monday, September 1st. Sanford C. Bernstein reiterated a "buy" rating on shares of Netflix in a research report on Wednesday, November 19th. Finally, Itau BBA Securities began coverage on Netflix in a research note on Tuesday, October 7th. They set an "outperform" rating and a $151.40 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and an average price target of $133.90.

Netflix Trading Down 4.9%

The firm has a market cap of $440.51 billion, a P/E ratio of 43.43, a PEG ratio of 1.62 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The stock has a 50 day moving average of $113.95 and a 200 day moving average of $119.46.

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Brighton Jones LLC increased its position in Netflix by 5.0% in the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock worth $4,804,000 after purchasing an additional 257 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in shares of Netflix by 16.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock worth $912,000 after buying an additional 144 shares during the last quarter. Intrust Bank NA raised its position in shares of Netflix by 4.2% during the 1st quarter. Intrust Bank NA now owns 3,361 shares of the Internet television network's stock valued at $3,134,000 after buying an additional 136 shares in the last quarter. Thoroughbred Financial Services LLC lifted its holdings in shares of Netflix by 48.3% in the 1st quarter. Thoroughbred Financial Services LLC now owns 6,091 shares of the Internet television network's stock valued at $5,680,000 after acquiring an additional 1,984 shares during the last quarter. Finally, Advyzon Investment Management LLC grew its position in Netflix by 33.6% in the first quarter. Advyzon Investment Management LLC now owns 760 shares of the Internet television network's stock worth $709,000 after acquiring an additional 191 shares in the last quarter. 80.93% of the stock is currently owned by 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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