Netflix (NASDAQ:NFLX) Stock Price Down 6.3% After Insider Selling

Key Points

• Shares fell 6.3% after director Reed Hastings sold 375,470 shares at an average of $108.43 (about $40.7M), cutting his stake by 98.96% to 3,940 shares; the stock traded as low as $102.64 on volume of ~12.0M shares (about 70% below average).
• Wall Street remains generally positive with a consensus rating of Moderate Buy and an average target of $133.90, although several firms have trimmed price targets (examples: Rosenblatt $152, Piper Sandler $140, Goldman Sachs $130).
• Netflix reported quarterly EPS of $5.87 that beat estimates while revenue of $11.32B slightly missed consensus; the company trades at a PE of 43.2 and has a market cap of roughly $438.8B.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) were down 6.3% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $102.64 and last traded at $102.49. Approximately 12,013,294 shares were traded during trading, a decline of 70% from the average daily volume of 39,650,656 shares. The stock had previously closed at $109.35.

Specifically, Director Reed Hastings sold 375,470 shares of the firm's stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $108.43, for a total transaction of $40,712,212.10. Following the sale, the director owned 3,940 shares of the company's stock, valued at $427,214.20. This trade represents a 98.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on NFLX shares. Rosenblatt Securities reaffirmed a "buy" rating and issued a $152.00 price objective (down previously from $153.00) on shares of Netflix in a report on Friday, November 28th. UBS Group restated a "buy" rating on shares of Netflix in a research report on Wednesday, November 12th. Piper Sandler reiterated an "overweight" rating and set a $140.00 price target (down previously from $150.00) on shares of Netflix in a research report on Wednesday, October 22nd. The Goldman Sachs Group dropped their price objective on Netflix from $131.00 to $130.00 and set a "neutral" rating on the stock in a report on Tuesday, September 30th. Finally, Cowen reaffirmed a "buy" rating on shares of Netflix in a research note on Tuesday, October 7th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Netflix has a consensus rating of "Moderate Buy" and an average target price of $133.90.

Netflix Trading Down 5.3%

The company has a 50 day simple moving average of $113.95 and a 200 day simple moving average of $119.46. The company has a market capitalization of $438.83 billion, a PE ratio of 43.20, a price-to-earnings-growth ratio of 1.62 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 earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, beating the consensus estimate of $0.69 by $5.18. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business had revenue of $11.32 billion for the quarter, compared to the consensus estimate of $11.52 billion. During the same quarter last year, the business posted $0.54 earnings per share. The business's quarterly revenue was up 17.2% compared to the same quarter last year. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current year.

Institutional Investors Weigh In On Netflix

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Optima Capital LLC raised its holdings in Netflix by 3.5% in the 2nd quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock valued at $320,000 after acquiring an additional 8 shares during the last quarter. Unified Investment Management grew its position in shares of Netflix by 1.7% in the second quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock valued at $635,000 after purchasing an additional 8 shares in the last quarter. Plancorp LLC increased its holdings in shares of Netflix by 0.6% in the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock valued at $1,711,000 after purchasing an additional 8 shares during the last quarter. Five Oceans Advisors lifted its position in Netflix by 1.1% during the second quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock worth $1,006,000 after buying an additional 8 shares in the last quarter. Finally, Old Port Advisors lifted its position in Netflix by 1.3% during the second quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock worth $836,000 after buying an additional 8 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

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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