Netflix (NASDAQ:NFLX) Stock Price Down 2.3% After Analyst Downgrade

Key Points

• Netflix shares declined by 2.3% following a downgrade by Goldman Sachs, which lowered the price target from $1,310 to $1,300.
• Despite the recent downgrade, Netflix maintains a consensus rating of "Moderate Buy", with an average target price of $1,334.03 from various analysts.
• Netflix's CFO recently sold 2,600 shares of the company stock, representing a 41.33% decrease in their holdings.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares fell 2.3% during mid-day trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $1,310.00 to $1,300.00. The Goldman Sachs Group currently has a neutral rating on the stock. Netflix traded as low as $1,163.21 and last traded at $1,170.90. 4,093,437 shares traded hands during trading, an increase of 4% from the average session volume of 3,950,870 shares. The stock had previously closed at $1,198.92.

Several other equities research analysts have also issued reports on NFLX. Needham & Company LLC restated a "buy" rating and set a $1,500.00 price target on shares of Netflix in a research note on Wednesday, September 10th. Wedbush reiterated an "outperform" rating and set a $1,500.00 price target (up previously from $1,400.00) on shares of Netflix in a research note on Monday, July 14th. Phillip Securities cut Netflix from a "hold" rating to a "strong sell" rating in a research note on Monday, July 21st. Seaport Res Ptn lowered shares of Netflix from a "strong-buy" rating to a "hold" rating in a research report on Sunday, July 6th. Finally, Jefferies Financial Group reissued a "buy" rating on shares of Netflix in a report on Thursday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Netflix currently has a consensus rating of "Moderate Buy" and an average target price of $1,334.03.

Insiders Place Their Bets

In other Netflix news, CFO Spencer Adam Neumann sold 2,600 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $1,207.76, for a total transaction of $3,140,176.00. Following the sale, the chief financial officer owned 3,691 shares in the company, valued at approximately $4,457,842.16. This trade represents a 41.33% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Cletus R. Willems sold 238 shares of the business's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $1,153.52, for a total transaction of $274,537.76. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 59,324 shares of company stock valued at $70,235,556. 1.37% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently modified their holdings of NFLX. Roxbury Financial LLC raised its stake in shares of Netflix by 6.3% in the third quarter. Roxbury Financial LLC now owns 185 shares of the Internet television network's stock worth $222,000 after purchasing an additional 11 shares during the last quarter. First Financial Bank Trust Division boosted its holdings in Netflix by 2.9% during the third quarter. First Financial Bank Trust Division now owns 354 shares of the Internet television network's stock worth $424,000 after buying an additional 10 shares in the last quarter. Vigilare Wealth Management grew its position in Netflix by 10.4% during the third quarter. Vigilare Wealth Management now owns 889 shares of the Internet television network's stock valued at $1,066,000 after buying an additional 84 shares during the period. Neville Rodie & Shaw Inc. increased its holdings in Netflix by 71.6% in the third quarter. Neville Rodie & Shaw Inc. now owns 3,769 shares of the Internet television network's stock valued at $4,519,000 after buying an additional 1,572 shares in the last quarter. Finally, Praxis Investment Management Inc. raised its position in shares of Netflix by 1.9% in the third quarter. Praxis Investment Management Inc. now owns 11,742 shares of the Internet television network's stock worth $14,078,000 after acquiring an additional 222 shares during the period. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Stock Performance

The firm has a market capitalization of $497.55 billion, a PE ratio of 49.89, a price-to-earnings-growth ratio of 2.03 and a beta of 1.60. The firm's 50 day moving average price is $1,208.39 and its 200-day moving average price is $1,155.85. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.34 and a current ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, July 17th. The Internet television network reported $7.19 EPS for the quarter, beating analysts' consensus estimates of $7.07 by $0.12. The company had revenue of $11.08 billion for the quarter, compared to analysts' expectations of $11.04 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. Netflix's revenue for the quarter was up 15.9% compared to the same quarter last year. During the same quarter in the prior year, the company posted $4.88 earnings per share. 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 year.

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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