Netflix (NASDAQ:NFLX) Trading Down 1.6% - Should You Sell?

Key Points

• Netflix's stock fell by 1.6%, closing at $1,183.59, with trading volume down 28% from the average daily volume.
• Seaport Res Ptn upgraded Netflix to a strong-buy, while Wall Street analysts maintain a consensus rating of "Moderate Buy" with an average target price of $1,339.81.
• Insider activity includes significant sales by Director Reed Hastings and CEO Theodore A. Sarandos, with Hastings reducing his position by 99.07% through the sale of over 42,000 shares.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) dropped 1.6% on Thursday . The company traded as low as $1,176.00 and last traded at $1,183.59. Approximately 2,820,856 shares were traded during trading, a decline of 28% from the average daily volume of 3,904,610 shares. The stock had previously closed at $1,203.29.

Wall Street Analyst Weigh In

NFLX has been the subject of a number of recent analyst reports. Seaport Res Ptn upgraded Netflix from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 6th. UBS Group restated a "buy" rating and set a $1,495.00 price objective on shares of Netflix in a research note on Thursday. Wall Street Zen lowered Netflix from a "buy" rating to a "hold" rating in a research note on Saturday, October 4th. Robert W. Baird raised their price objective on Netflix from $1,300.00 to $1,500.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Finally, Cowen restated a "buy" rating on shares of Netflix in a research note on Tuesday, October 7th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $1,339.81.

Netflix Trading Down 1.6%

The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.34 and a current ratio of 1.34. The business has a fifty day simple moving average of $1,213.65 and a 200 day simple moving average of $1,172.31. The company has a market cap of $502.94 billion, a P/E ratio of 50.43, a P/E/G ratio of 2.04 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, July 17th. The Internet television network reported $7.19 EPS for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. The company had revenue of $11.08 billion for the quarter, compared to the consensus estimate of $11.04 billion. Netflix had a return on equity of 42.50% and a net margin of 24.58%.Netflix's quarterly revenue was up 15.9% compared to the same quarter last year. During the same quarter last year, the business posted $4.88 EPS. Analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Reed Hastings sold 42,176 shares of the firm's stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $1,171.92, for a total value of $49,426,897.92. Following the sale, the director owned 394 shares of the company's stock, valued at approximately $461,736.48. This trade represents a 99.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Theodore A. Sarandos sold 2,026 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $1,160.62, for a total value of $2,351,416.12. Following the completion of the sale, the chief executive officer directly owned 15,168 shares in the company, valued at approximately $17,604,284.16. This trade represents a 11.78% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 104,100 shares of company stock worth $122,710,980. 1.37% of the stock is currently owned by insiders.

Institutional Trading of Netflix

Several hedge funds have recently made changes to their positions in NFLX. Retirement Wealth Solutions LLC bought a new stake in Netflix during the 3rd quarter valued at $28,000. Legacy Investment Solutions LLC bought a new stake in Netflix during the 2nd quarter valued at $31,000. Steph & Co. raised its stake in Netflix by 188.9% during the 3rd quarter. Steph & Co. now owns 26 shares of the Internet television network's stock valued at $31,000 after acquiring an additional 17 shares in the last quarter. Stephens Consulting LLC raised its stake in 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 acquiring an additional 15 shares in the last quarter. Finally, Rossby Financial LCC bought a new stake in Netflix during the 2nd quarter valued at $35,000. Institutional investors own 80.93% of the company's stock.

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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