Netflix (NASDAQ:NFLX) Stock Price Down 5.1% - Here's Why

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price dropped 5.1% during trading on Friday . The stock traded as low as $1,201.01 and last traded at $1,208.90. Approximately 5,468,819 shares were traded during mid-day trading, an increase of 45% from the average daily volume of 3,782,244 shares. The stock had previously closed at $1,274.17.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on NFLX shares. JPMorgan Chase & Co. upped their price target on Netflix from $1,230.00 to $1,300.00 and gave the company a "neutral" rating in a research report on Friday. Robert W. Baird lifted their target price on shares of Netflix from $1,200.00 to $1,300.00 and gave the stock an "outperform" rating in a research note on Friday, May 16th. The Goldman Sachs Group boosted their price target on shares of Netflix from $1,000.00 to $1,140.00 and gave the company a "neutral" rating in a research report on Wednesday, July 2nd. Sanford C. Bernstein upped their price target on shares of Netflix from $1,200.00 to $1,390.00 and gave the company an "outperform" rating in a research note on Thursday. Finally, Barclays reiterated a "sell" rating and issued a $1,100.00 price objective (up from $1,000.00) on shares of Netflix in a research note on Wednesday, July 9th. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating, twenty-five have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, Netflix currently has an average rating of "Moderate Buy" and a consensus target price of $1,269.09.

Netflix Price Performance

The firm has a fifty day moving average of $1,231.20 and a two-hundred day moving average of $1,058.57. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 0.58. The company has a market capitalization of $516.34 billion, a PE ratio of 57.34, a PEG ratio of 2.26 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.07 by $0.12. Netflix had a net margin of 23.07% and a return on equity of 39.61%. The firm had revenue of $11.08 billion for the quarter, compared to analysts' expectations of $11.04 billion. During the same quarter last year, the business earned $4.88 earnings per share. The business's revenue was up 15.9% on a year-over-year basis. Research analysts anticipate that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Activity at Netflix

In related news, Director Reed Hastings sold 26,977 shares of the business's stock in a transaction dated Thursday, May 1st. The shares were sold at an average price of $1,133.05, for a total transaction of $30,566,289.85. Following the transaction, the director owned 394 shares in the company, valued at $446,421.70. The trade was a 98.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Spencer Adam Neumann sold 2,601 shares of the firm's stock in a transaction that occurred on Thursday, May 1st. The shares were sold at an average price of $1,132.38, for a total value of $2,945,320.38. Following the completion of the transaction, the chief financial officer owned 3,691 shares of the company's stock, valued at approximately $4,179,614.58. The trade was a 41.34% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 186,723 shares of company stock valued at $223,307,201 in the last 90 days. 1.37% of the stock is owned by company insiders.

Hedge Funds Weigh In On Netflix

Large investors have recently made changes to their positions in the business. GAMMA Investing LLC increased its stake in Netflix by 109,524.3% during the 1st quarter. GAMMA Investing LLC now owns 8,835,722 shares of the Internet television network's stock valued at $8,239,576,000 after purchasing an additional 8,827,662 shares in the last quarter. Norges Bank purchased a new position in Netflix in the 4th quarter worth approximately $5,019,087,000. Nuveen LLC purchased a new stake in Netflix during the 1st quarter valued at $2,385,585,000. Kingstone Capital Partners Texas LLC boosted its stake in Netflix by 343,058.2% during 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 purchasing an additional 2,463,158 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Netflix by 57.3% in 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 purchasing an additional 1,236,251 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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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