Netflix (NASDAQ:NFLX) Stock Price Down 3.6% - Should You Sell?

Key Points

• Shares fell 3.6% intraday to about $1,112 with volume up ~18%, and the stock is set for a 10-for-1 split (shares distributed after market close Nov. 14, split effective Nov. 17).
• Q3 earnings missed estimates — $5.87 EPS vs. $6.88 expected and $11.32B revenue vs. $11.52B consensus — signaling slower-than-expected near-term results.
• Analysts hold a "Moderate Buy" consensus with an average price target of $1,340.22 amid mixed upgrades/downgrades, while significant insider selling (including CEO and a director) has occurred recently.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) dropped 3.6% during mid-day trading on Friday . The company traded as low as $1,107.21 and last traded at $1,112.17. Approximately 4,720,857 shares changed hands during trading, an increase of 18% from the average daily volume of 4,008,531 shares. The stock had previously closed at $1,154.23.

Analysts Set New Price Targets

Several analysts have issued reports on NFLX shares. KGI Securities upgraded shares of Netflix from a "neutral" rating to an "outperform" rating and set a $1,350.00 price target on the stock in a research report on Monday, November 3rd. Robert W. Baird increased their price objective on Netflix from $1,300.00 to $1,500.00 and gave the stock an "outperform" rating in a research note on Monday, July 21st. Wall Street Zen lowered shares of Netflix from a "buy" rating to a "hold" rating in a report on Saturday, October 4th. Canaccord Genuity Group reaffirmed a "buy" rating and set a $1,525.00 price objective on shares of Netflix in a report on Wednesday, October 22nd. Finally, Piper Sandler reaffirmed an "overweight" rating and set a $1,400.00 price target (down from $1,500.00) on shares of Netflix in a report on Wednesday, October 22nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, Netflix has a consensus rating of "Moderate Buy" and an average price target of $1,340.22.

Netflix Trading Down 3.6%

The business has a 50 day moving average price of $1,176.58 and a 200 day moving average price of $1,199.57. The company has a market capitalization of $471.26 billion, a P/E ratio of 46.46, a PEG ratio of 1.91 and a beta of 1.58. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.56.

Netflix's stock is set to split before the market opens on Monday, November 17th. The 10-1 split was announced on Thursday, October 30th. The newly minted shares will be distributed to shareholders after the market closes on Friday, November 14th.

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 for the quarter, missing analysts' consensus estimates of $6.88 by ($1.01). The company had revenue of $11.32 billion during the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. The business's quarterly revenue was up 17.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $5.40 EPS. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS. Analysts anticipate that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 2,027 shares of the company's stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $1,095.68, for a total transaction of $2,220,943.36. Following the sale, the chief executive officer owned 12,781 shares in the company, valued at $14,003,886.08. This represents a 13.69% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Reed Hastings sold 42,176 shares of the firm's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $1,171.92, for a total transaction of $49,426,897.92. Following the completion of the transaction, the director directly owned 394 shares of the company's stock, valued at $461,736.48. This represents a 99.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 152,996 shares of company stock valued at $175,427,521 in the last three months. 1.37% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of NFLX. Norges Bank bought a new position in shares of Netflix in the second quarter valued at about $7,929,645,000. Laurel Wealth Advisors LLC increased its stake in Netflix by 128,553.9% in the second quarter. Laurel Wealth Advisors LLC now owns 4,881,129 shares of the Internet television network's stock valued at $6,536,466,000 after acquiring an additional 4,877,335 shares during the last quarter. Nuveen LLC bought a new position in shares of Netflix in the first quarter worth about $2,385,585,000. Kingstone Capital Partners Texas LLC lifted its stake in shares of Netflix by 343,058.2% in the 2nd quarter. Kingstone Capital Partners Texas LLC now owns 2,463,876 shares of the Internet television network's stock valued at $3,299,450,000 after acquiring an additional 2,463,158 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its holdings in Netflix by 57.3% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,393,064 shares of the Internet television network's stock worth $3,164,134,000 after acquiring an additional 1,236,251 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

About Netflix

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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