Netflix (NASDAQ:NFLX) Trading Down 2.9% After Insider Selling

Shares of Netflix, Inc. (NASDAQ:NFLX) fell 2.9% on Tuesday following insider selling activity. The stock traded as low as $85.32 and last traded at $83.3560. 32,656,061 shares traded hands during trading, an increase of 3% from the average session volume of 31,739,898 shares. The stock had previously closed at $85.85.

Specifically, Director Reed Hastings sold 386,700 shares of the business’s stock in a transaction on 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 transaction, the director owned 3,940 shares in the company, valued at $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on NFLX shares. Citizens Jmp reissued a “market perform” rating on shares of Netflix in a research note on Wednesday, April 15th. Seaport Research Partners boosted their target price on shares of Netflix from $115.00 to $119.00 and gave the stock a “buy” rating in a report on Friday, April 17th. Arete Research upgraded shares of Netflix from a “neutral” rating to a “buy” rating in a report on Friday, February 27th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Netflix from $98.00 to $100.00 and gave the stock a “hold” rating in a report on Tuesday, April 14th. Finally, Weiss Ratings upgraded shares of Netflix from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday, May 4th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $114.82.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is being highlighted as potentially undervalued after a steep decline, with some analysts and commentators suggesting the stock may now look more like a value opportunity than a pure growth story. Down 28%, Netflix Stock Is Suddenly a Bargain
• Positive Sentiment: Recent coverage points to improving fundamentals, including raised free cash flow guidance and faster ad-tier growth, which could support future earnings and sentiment. Netflix Nearing 52-Week Low: Buy, Sell or Hold?
• Positive Sentiment: Netflix continues broadening its business model through live content and consumer product partnerships, which could open new revenue streams beyond subscriptions. A Look At Netflix (NFLX) Valuation As Live Content And Franchise Deals Broaden Its Business Model
• Neutral Sentiment: Media coverage about what to stream on Netflix in June may help keep the brand visible, but it is unlikely to materially move the stock on its own. Here’s what’s worth streaming in June on Netflix, Hulu, HBO Max and more
• Negative Sentiment: Director Reed Hastings sold 386,700 shares worth about $33.2 million, a large insider disposal that can weigh on investor sentiment even though it was made under a pre-arranged trading plan. SEC Form 4 filing

Netflix Stock Down 2.9%

The firm has a market cap of $351.00 billion, a price-to-earnings ratio of 26.92, a PEG ratio of 1.09 and a beta of 1.50. The business’s 50 day moving average price is $93.00 and its 200 day moving average price is $93.09. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, April 16th. The Internet television network reported $1.23 EPS for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. During the same quarter last year, the company earned $6.61 EPS. The business’s revenue was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts forecast that Netflix, Inc. will post 3.6 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in NFLX. Brighton Jones LLC lifted its position in shares of Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after buying an additional 257 shares in the last quarter. Revolve Wealth Partners LLC lifted its position in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after buying an additional 144 shares in the last quarter. Sivia Capital Partners LLC lifted its position in shares of Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after buying an additional 246 shares in the last quarter. Strategic Investment Advisors MI lifted its position in shares of Netflix by 18.9% during the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after buying an additional 123 shares in the last quarter. Finally, Schnieders Capital Management LLC. lifted its position in shares of Netflix by 12.1% during the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after buying an additional 228 shares in the last quarter. Hedge funds and other 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.