Netflix (NASDAQ:NFLX) Trading Down 1.2% - Here's What Happened

Key Points

• Netflix's stock decreased by 1.2% to $1,203.95, with a trading volume of approximately 2.73 million shares, a 31% drop from its average daily volume.
• Analysts' ratings for Netflix show a consensus of Moderate Buy with an average price target of $1,328.87, following several price adjustments from various firms.
• CEO Theodore Sarandos and Director Reed Hastings sold significant shares recently, which has led to a decrease in their ownership stakes in the company.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) was down 1.2% on Wednesday . The stock traded as low as $1,194.20 and last traded at $1,203.95. Approximately 2,736,629 shares were traded during trading, a decline of 31% from the average daily volume of 3,977,562 shares. The stock had previously closed at $1,218.47.

Analyst Ratings Changes

Several equities analysts have recently weighed in on NFLX shares. Citigroup reiterated a "neutral" rating and set a $1,250.00 price objective (up previously from $1,020.00) on shares of Netflix in a report on Thursday, May 29th. Bank of America upped their price objective on shares of Netflix from $1,175.00 to $1,490.00 and gave the company a "buy" rating in a report on Friday, May 30th. UBS Group reiterated a "market underperform" rating on shares of Netflix in a report on Saturday, July 19th. Morgan Stanley reiterated an "equal weight" rating on shares of Netflix in a report on Monday, July 21st. Finally, TD Cowen boosted their target price on shares of Netflix from $1,440.00 to $1,450.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $1,328.87.

Netflix Stock Down 1.2%

The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58. The stock's 50-day simple moving average is $1,210.96 and its 200-day simple moving average is $1,145.17. The firm has a market capitalization of $511.59 billion, a P/E ratio of 51.30, a P/E/G ratio of 2.07 and a beta of 1.60.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The business had revenue of $11.08 billion during the quarter, compared to the consensus estimate of $11.04 billion. During the same period in the prior year, the firm posted $4.88 EPS. The firm's quarterly revenue was up 15.9% compared to the same quarter last year. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. As a group, research analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, CEO Theodore A. Sarandos sold 2,026 shares of the stock in a transaction that occurred on Tuesday, August 5th. The shares were sold at an average price of $1,160.62, for a total transaction of $2,351,416.12. Following the completion of the transaction, the chief executive officer directly owned 15,168 shares of the company's stock, valued at $17,604,284.16. This represents a 11.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Reed Hastings sold 25,959 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $1,207.71, for a total transaction of $31,350,943.89. Following the transaction, the director directly owned 394 shares of the company's stock, valued at $475,837.74. This represents a 98.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 88,728 shares of company stock valued at $108,700,648 over the last quarter. 1.37% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of NFLX. Vanguard Group Inc. boosted its holdings in Netflix by 1.0% in the 2nd quarter. Vanguard Group Inc. now owns 38,379,084 shares of the Internet television network's stock worth $51,394,583,000 after buying an additional 381,824 shares during the period. State Street Corp boosted its holdings in Netflix by 2.1% in the 2nd quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock worth $23,359,801,000 after buying an additional 360,604 shares during the period. Price T Rowe Associates Inc. MD boosted its holdings in Netflix by 2.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock worth $10,940,505,000 after buying an additional 304,399 shares during the period. Geode Capital Management LLC boosted its holdings in Netflix by 2.4% in the 2nd quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network's stock worth $13,234,278,000 after buying an additional 229,182 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in Netflix by 109,524.3% in the 1st quarter. GAMMA Investing LLC now owns 8,835,722 shares of the Internet television network's stock worth $8,239,576,000 after buying an additional 8,827,662 shares during the period. 80.93% of the stock is owned by 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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