Netflix (NASDAQ:NFLX) Stock Price Down 1.2% - Here's What Happened

Key Points

• Netflix's stock price dropped by 1.2% on Wednesday, trading as low as $1,194.10 and closing at $1,199.69, with trading volume down 78% compared to average levels.
• Analysts have provided mixed ratings for Netflix, with a consensus rating of "Moderate Buy" and a target price of $1,297.66, while institutions own 80.93% of the stock.
• Netflix's recent quarterly earnings showed an EPS of $7.19, exceeding expectations, with a year-over-year revenue increase of 15.9% to $11.08 billion.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) was down 1.2% on Wednesday . The stock traded as low as $1,194.10 and last traded at $1,199.69. Approximately 906,393 shares traded hands during trading, a decline of 78% from the average daily volume of 4,144,217 shares. The stock had previously closed at $1,214.15.

Analyst Ratings Changes

Several equities research analysts recently weighed in on NFLX shares. Sanford C. Bernstein increased their price target on Netflix from $1,200.00 to $1,390.00 and gave the stock an "outperform" rating in a report on Thursday, July 17th. KeyCorp increased their price target on Netflix from $1,070.00 to $1,390.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Canaccord Genuity Group reaffirmed a "buy" rating on shares of Netflix in a report on Thursday, July 10th. Evercore ISI reaffirmed an "outperform" rating on shares of Netflix in a report on Thursday, May 15th. Finally, Piper Sandler raised their target price on Netflix from $1,400.00 to $1,500.00 and gave the company an "overweight" rating in a report on Friday, July 18th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $1,297.66.

Netflix Trading Down 0.1%

The firm has a market cap of $511.89 billion, a PE ratio of 51.33, a PEG ratio of 2.03 and a beta of 1.59. The business has a 50-day moving average price of $1,231.41 and a two-hundred day moving average price of $1,110.98. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, beating analysts' consensus estimates of $7.07 by $0.12. The business had revenue of $11.08 billion during the quarter, compared to analysts' expectations 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 last year, the business posted $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. Analysts forecast that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Activity

In related news, insider David A. Hyman sold 424 shares of Netflix stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $1,158.67, for a total transaction of $491,276.08. Following the completion of the sale, the insider owned 31,610 shares in the company, valued at approximately $36,625,558.70. This trade represents a 1.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Theodore A. Sarandos sold 2,026 shares of Netflix stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $1,160.62, for a total value of $2,351,416.12. Following the sale, the chief executive officer owned 15,168 shares of the company's stock, valued at approximately $17,604,284.16. This represents a 11.78% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 146,307 shares of company stock worth $179,443,809 in the last quarter. Corporate insiders own 1.37% of the company's stock.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Stance Capital LLC purchased a new stake in Netflix in the 2nd quarter valued at about $4,165,000. Cim Investment Management Inc. grew its holdings in Netflix by 93.3% in the 2nd quarter. Cim Investment Management Inc. now owns 6,453 shares of the Internet television network's stock valued at $8,641,000 after buying an additional 3,115 shares during the period. Clarion Wealth Managment Partners LLC purchased a new stake in Netflix in the 2nd quarter valued at about $465,000. Coppell Advisory Solutions LLC purchased a new stake in Netflix in the 2nd quarter valued at about $10,891,000. Finally, B. Riley Wealth Advisors Inc. purchased a new stake in Netflix in the 2nd quarter valued at about $15,785,000. Hedge funds and other institutional investors 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.