Netflix (NASDAQ:NFLX) Trading Down 1.3% – Here’s What Happened
by Teresa Graham · The Cerbat GemShares of Netflix, Inc. (NASDAQ:NFLX – Get Free Report) dropped 1.3% on Thursday . The stock traded as low as $70.86 and last traded at $70.90. 44,351,947 shares traded hands during mid-day trading, a decline of 2% from the average daily volume of 45,101,527 shares. The stock had previously closed at $71.84.
Key Stories Impacting Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Several analysts and commentators argue Netflix now looks cheap relative to other high-growth tech names, suggesting the selloff may be creating a buying opportunity for long-term investors.
- Positive Sentiment: Netflix continues to push beyond streaming, highlighting new animated titles, gaming releases such as “Unhinged,” and upcoming FIFA World Cup and horror-themed game content, which could open additional revenue streams.
- Positive Sentiment: The company’s ad technology is gaining traction, with Omnicom’s new AI ad alliance with Netflix pointing to potential growth in targeted advertising and monetization.
- Neutral Sentiment: Recent articles from Zacks and other industry pieces note that Netflix remains a major player in a competitive media landscape, but they do not point to any immediate fundamental catalyst.
- Negative Sentiment: Multiple reports say Netflix’s share of streaming time is declining, raising concern that engagement and audience share may be slipping.
- Negative Sentiment: Investor worry about possible M&A activity and “desperate” strategic moves is adding to the weakness, as the market questions whether Netflix needs to do something big to reaccelerate growth.
Analyst Upgrades and Downgrades
A number of brokerages have weighed in on NFLX. Barclays set a $110.00 price target on Netflix and gave the stock an “equal weight” rating in a research report on Friday, April 17th. Phillip Securities raised their price target on shares of Netflix from $100.00 to $110.00 in a research report on Monday, April 20th. Wedbush reissued an “outperform” rating and set a $118.00 price objective on shares of Netflix in a report on Thursday, April 16th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. Finally, Pivotal Research set a $96.00 price target on shares of Netflix and gave the stock a “hold” rating in a research report on Friday, April 17th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Netflix currently has a consensus rating of “Moderate Buy” and an average price target of $114.26.
View Our Latest Report on NFLX
Netflix Trading Down 1.3%
The company has a market cap of $298.55 billion, a P/E ratio of 22.90, a P/E/G ratio of 0.93 and a beta of 1.50. 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 50-day moving average price of $87.07 and a two-hundred day moving average price of $89.31.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm’s quarterly revenue was up 16.2% compared to the same quarter last year. During the same quarter last year, the business earned $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, analysts predict that Netflix, Inc. will post 3.6 EPS for the current year.
Insider Buying and Selling
In other news, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the sale, the chief executive officer owned 284,804 shares in the company, valued at $25,054,207.88. The trade was a 8.75% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 35,990 shares of the business’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the sale, the director directly owned 79,690 shares of the company’s stock, valued at approximately $6,177,568.80. This trade represents a 31.11% 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. In the last ninety days, insiders have sold 1,349,019 shares of company stock worth $123,105,721. 1.24% of the stock is currently owned by company insiders.
Institutional Trading of Netflix
Several institutional investors and hedge funds have recently made changes to their positions in NFLX. Vanguard Group Inc. lifted its stake in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the period. State Street Corp grew its position in shares of Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC increased its stake in shares of Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors increased its stake in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock valued at $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley raised its position in shares of Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock valued at $8,002,414,000 after acquiring an additional 76,840,318 shares during the period. Institutional investors 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.