Netflix (NASDAQ:NFLX) Trading Down 2.2% After Insider Selling

Key Points

• Netflix shares fell 2.2% in mid-day trading after an insider sale, briefly trading as low as $81.10 before closing near $81.52.
• Director Reed Hastings sold 386,700 shares for about $33.2 million in a pre-arranged Rule 10b5-1 transaction, reducing his ownership by roughly 99%.
• Despite the pullback, analyst sentiment remains constructive: Netflix still has a consensus “Moderate Buy” rating and an average target price of $114.82, and its latest earnings beat both EPS and revenue expectations.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) dropped 2.2% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $81.10 and last traded at $81.52. Approximately 35,943,760 shares were traded during trading, a decline of 19% from the average daily volume of 44,646,691 shares. The stock had previously closed at $83.33.

Specifically, Director Reed Hastings sold 386,700 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the sale, the director owned 3,940 shares of the company's stock, valued at approximately $338,721.80. This represents a 98.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

NFLX has been the topic of several research reports. JPMorgan Chase & Co. reissued a "buy" rating on shares of Netflix in a research report on Wednesday, April 22nd. Seaport Research Partners increased their price target on shares of Netflix from $115.00 to $119.00 and gave the company a "buy" rating in a research note on Friday, April 17th. Daiwa Securities Group raised their target price on shares of Netflix from $97.00 to $102.00 and gave the stock an "outperform" rating in a research report on Thursday, April 23rd. Barclays set a $110.00 target price on shares of Netflix and gave the stock an "equal weight" rating in a research report on Friday, April 17th. Finally, President Capital raised their target price on shares of Netflix from $133.00 to $134.00 and gave the stock a "buy" rating in a research report on Tuesday, March 31st. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and sixteen have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $114.82.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to broaden its business beyond core streaming, including new live-content initiatives and franchise-related consumer product partnerships that could support future revenue growth. Netflix Stock Is on Track for Its Longest Losing Streak Since 2022
• Positive Sentiment: Some commentary says the pullback may be creating a more attractive entry point, pointing to improved free-cash-flow guidance, a growing ad business, and solid long-term revenue trends. Amid the Artificial Intelligence (AI) Bonanza, Investors Might be Overlooking a Big Opportunity to Buy Netflix Stock
• Positive Sentiment: Netflix’s recent quarterly results were strong, with earnings and revenue both beating expectations, which supports the case that the business fundamentals remain healthy. Netflix company report
• Neutral Sentiment: Analyst opinion remains generally constructive overall, with a consensus “Moderate Buy” and an average target price above the current trading range, though some firms have recently turned more cautious.
• Negative Sentiment: Netflix is on track for its longest losing streak since 2022, suggesting investors are rotating out despite the company’s growth story. Netflix stock heads for worst losing streak in nearly four years
• Negative Sentiment: Director Reed Hastings sold 386,700 shares in a pre-arranged 10b5-1 transaction, which can weigh on sentiment even though the sale was planned in advance. Insider Selling: Netflix NASDAQ: NFLX Director Sells 386,700 Shares of Stock

Netflix Trading 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 $93.00 and a 200 day simple moving average of $93.09. The company has a market cap of $343.26 billion, a price-to-earnings ratio of 26.33, a P/E/G ratio of 1.09 and a beta of 1.50.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, beating analysts' consensus estimates of $0.76 by $0.47. The company had revenue of $12.25 billion during 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%.Netflix's quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the company earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. First Financial Corp IN increased its position in Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network's stock worth $25,000 after purchasing an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. grew its holdings in Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network's stock valued at $25,000 after buying an additional 239 shares during the period. Turning Point Benefit Group Inc. grew its holdings in Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network's stock valued at $25,000 after buying an additional 268 shares during the period. Imprint Wealth LLC purchased a new stake in Netflix in the 3rd quarter valued at about $25,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Netflix during the 4th quarter worth about $26,000. Institutional investors and hedge funds own 80.93% of the company's stock.

About Netflix

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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