Netflix (NASDAQ:NFLX) Trading Down 2.2% After Analyst Downgrade

Key Points

• Netflix shares fell 2.2% after Moffett Nathanson cut its price target to $115 from $120, even while maintaining a Buy rating. The stock traded as low as $76.76 on heavier-than-average volume.
• Other analysts remain generally constructive on Netflix, with the consensus rating still at Moderate Buy and an average price target of $114.26. Recent notes from Piper Sandler, DZ Bank, Barclays, and Wolfe Research show mixed but still favorable sentiment.
• Netflix’s latest earnings beat expectations, with $1.23 EPS on $12.25 billion in revenue, and revenue rose 16.2% year over year. However, insider selling has been notable, including large share sales by CFO Spencer Adam Neumann and director Reed Hastings.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) shares were down 2.2% during mid-day trading on Wednesday after Moffett Nathanson lowered their price target on the stock from $120.00 to $115.00. Moffett Nathanson currently has a buy rating on the stock. Netflix traded as low as $76.76 and last traded at $76.96. Approximately 50,078,083 shares traded hands during trading, an increase of 13% from the average daily volume of 44,312,461 shares. The stock had previously closed at $78.72.

Other analysts have also recently issued research reports about the company. Piper Sandler reaffirmed an "overweight" rating and issued a $115.00 price target (up from $103.00) on shares of Netflix in a research report on Friday, April 17th. DZ Bank reaffirmed a "buy" rating on shares of Netflix in a research report on Friday, April 17th. Barclays set a $110.00 price objective on Netflix and gave the stock an "equal weight" rating in a research note on Friday, April 17th. Huber Research upgraded Netflix from a "strong sell" rating to a "strong-buy" rating in a research note on Friday, February 27th. Finally, Wolfe Research reiterated an "outperform" rating and issued a $107.00 price objective on shares of Netflix in a research note on Friday, April 17th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $114.26.

Insider Activity

In related news, CFO Spencer Adam Neumann sold 28,630 shares of the business's stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $98.00, for a total transaction of $2,805,740.00. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $7,231,126. The trade was a 27.95% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Reed Hastings sold 420,550 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $95.49, for a total value of $40,158,319.50. Following the transaction, the director owned 3,940 shares in the company, valued at $376,230.60. This represents a 99.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,313,029 shares of company stock valued at $120,315,776. Corporate insiders own 1.24% of the company's stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is still being viewed as a possible strategic acquirer in media, with rumors linking it to Lionsgate Studios; that keeps alive the possibility of Netflix using M&A to bolster its content library and long-term growth. Article Title
• Positive Sentiment: Several commentators argued Netflix may be near a technical bottom after a steep two-month decline, which could encourage dip-buying and support a rebound if selling pressure eases. Article Title
• Neutral Sentiment: Moffett Nathanson lowered its price target on Netflix to $115 from $120, but kept a Buy rating, signaling continued confidence despite a slightly less optimistic valuation view. Article Title
• Negative Sentiment: Netflix publicly denied interest in buying Lionsgate, disappointing traders who had bid up takeover hopes and adding to the view that the company may stay disciplined on acquisitions rather than pursue a big splash. Article Title
• Negative Sentiment: The Fox-Roku deal and related analysis suggest Netflix is losing strategic ground in the battle for streaming distribution and living-room control, which may weigh on sentiment toward NFLX even if the company’s core business remains strong. Article Title

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Brighton Jones LLC boosted its holdings in Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network's stock valued at $4,804,000 after purchasing an additional 257 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network's stock valued at $912,000 after purchasing an additional 144 shares in the last quarter. Sivia Capital Partners LLC boosted its holdings in Netflix by 21.2% during the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network's stock valued at $1,883,000 after purchasing an additional 246 shares in the last quarter. Strategic Investment Advisors MI boosted its holdings in Netflix by 18.9% during the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network's stock valued at $1,036,000 after purchasing an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. boosted its holdings in Netflix by 12.1% during the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network's stock valued at $2,832,000 after purchasing an additional 228 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Stock Down 2.2%

The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The business has a fifty day simple moving average of $90.19 and a two-hundred day simple moving average of $90.65. The company has a market capitalization of $324.06 billion, a price-to-earnings ratio of 24.86, a P/E/G ratio of 1.04 and a beta of 1.50.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The company had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company's quarterly revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the business earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities analysts expect that Netflix, Inc. will post 3.6 EPS for the current year.

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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