Netflix (NASDAQ:NFLX) Stock Price Down 1.2% - What's Next?

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)'s stock price was down 1.2% on Wednesday . The company traded as low as $1,194.10 and last traded at $1,199.69. Approximately 906,393 shares changed hands during mid-day 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 Upgrades and Downgrades

Several research analysts have weighed in on the stock. Citigroup reiterated a "neutral" rating and issued a $1,250.00 price objective (up previously from $1,020.00) on shares of Netflix in a research note on Thursday, May 29th. Needham & Company LLC reiterated a "buy" rating and issued a $1,500.00 target price on shares of Netflix in a report on Friday, July 18th. UBS Group reissued a "market underperform" rating on shares of Netflix in a research report on Saturday, July 19th. KeyCorp lifted their price objective on Netflix from $1,070.00 to $1,390.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Finally, Barclays reissued a "sell" rating and issued a $1,100.00 price target (up from $1,000.00) on shares of Netflix in a report on Wednesday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $1,297.66.

Netflix Stock Down 0.5%

The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58. The firm's 50 day moving average is $1,231.86 and its two-hundred day moving average is $1,106.54. The firm has a market cap of $513.52 billion, a P/E ratio of 51.42, a price-to-earnings-growth ratio of 2.10 and a beta of 1.59.

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

Insider Buying and Selling at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 2,601 shares of the stock in a transaction that occurred on Tuesday, July 1st. The shares were sold at an average price of $1,307.22, for a total transaction of $3,400,079.22. Following the completion of the sale, the chief financial officer owned 3,691 shares of the company's stock, valued at approximately $4,824,949.02. This represents a 41.34% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Gregory K. Peters sold 2,026 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the sale, the chief executive officer directly owned 12,781 shares of the company's stock, valued at $14,793,240.64. This represents a 13.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 146,307 shares of company stock worth $179,443,809 in the last 90 days. Corporate insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Netflix

Several large investors have recently bought and sold shares of NFLX. Halbert Hargrove Global Advisors LLC lifted its stake in Netflix by 100.0% during the 1st quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock valued at $25,000 after acquiring an additional 13 shares in the last quarter. Brown Shipley& Co Ltd bought a new position in Netflix during the 4th quarter valued at $27,000. Legacy Investment Solutions LLC bought a new position in Netflix during the 2nd quarter valued at $31,000. Transce3nd LLC bought a new stake in shares of Netflix during the 4th quarter worth $32,000. Finally, Stephens Consulting LLC raised its stake in shares of Netflix by 150.0% during the 2nd quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock worth $33,000 after purchasing an additional 15 shares during the period. 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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