Netflix (NASDAQ:NFLX) Stock Price Down 3.5% - What's Next?

Key Points

• Netflix shares fell 3.5% to about $96.74 on Monday (intraday low $95.30) on heavy volume of ~99.6 million shares, roughly 146% above the average session volume.
• Analysts maintain a consensus rating of "Moderate Buy" with a consensus target price of $131.70, amid mixed broker actions including several buy/outperform ratings and some recent target adjustments.
• Netflix reported a major EPS beat—$5.87 vs. estimates of $0.69—but revenue of $11.32B was slightly below estimates; the company set Q4 2025 guidance at 5.450 EPS.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) traded down 3.5% on Monday . The stock traded as low as $95.30 and last traded at $96.7440. 99,579,334 shares changed hands during trading, an increase of 146% from the average session volume of 40,549,848 shares. The stock had previously closed at $100.24.

Analysts Set New Price Targets

Several brokerages have recently commented on NFLX. DZ Bank restated a "buy" rating on shares of Netflix in a research note on Friday. TD Cowen cut their price target on Netflix from $145.00 to $142.50 and set a "buy" rating on the stock in a report on Tuesday, October 7th. Citigroup restated a "neutral" rating and set a $129.50 price objective (up previously from $128.00) on shares of Netflix in a report on Friday, October 3rd. Itau BBA Securities assumed coverage on Netflix in a research report on Tuesday, October 7th. They set an "outperform" rating and a $151.40 target price on the stock. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Netflix in a report on Monday. Two analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $131.70.

Netflix Stock Performance

The company's 50 day moving average price is $112.86 and its 200-day moving average price is $119.12. The stock has a market cap of $409.94 billion, a P/E ratio of 40.41, a price-to-earnings-growth ratio of 1.48 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33.

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

Insider Transactions at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 26,000 shares of the business's stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $117.25, for a total value of $3,048,526.00. Following the transaction, the chief financial officer owned 36,910 shares of the company's stock, valued at approximately $4,327,734.41. The trade was a 41.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Reed Hastings sold 421,760 shares of the company's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $117.19, for a total value of $49,426,897.92. Following the completion of the transaction, the director owned 3,940 shares of the company's stock, valued at $461,736.48. This trade represents a 99.07% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,619,840 shares of company stock worth $181,648,613. 1.37% of the stock is owned by insiders.

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Imprint Wealth LLC purchased a new stake in shares of Netflix during the 3rd quarter worth approximately $25,000. Retirement Wealth Solutions LLC bought a new position in Netflix during the third quarter valued at $28,000. Legacy Investment Solutions LLC purchased a new stake in Netflix in the second quarter worth $31,000. Steph & Co. raised its stake in shares of Netflix by 188.9% in the third quarter. Steph & Co. now owns 26 shares of the Internet television network's stock valued at $31,000 after buying an additional 17 shares during the period. Finally, Stephens Consulting LLC lifted its position 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 valued at $33,000 after buying an additional 15 shares during 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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