Netflix (NASDAQ:NFLX) Director Richard Barton Sells 2,160 Shares

Netflix, Inc. (NASDAQ:NFLX) Director Richard Barton sold 2,160 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the transaction, the director directly owned 246 shares in the company, valued at $18,474.60. The trade was a 89.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Netflix Price Performance

Shares of NASDAQ NFLX traded down $0.51 during mid-day trading on Thursday, reaching $73.69. 28,786,076 shares of the company were exchanged, compared to its average volume of 45,609,168. Netflix, Inc. has a 52 week low of $65.08 and a 52 week high of $126.71. The company’s 50 day moving average price is $75.81 and its 200 day moving average price is $85.05. The stock has a market capitalization of $306.84 billion, a PE ratio of 23.19, a PEG ratio of 0.92 and a beta of 1.52. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same quarter in the prior year, the firm earned $0.72 earnings per share. The firm’s revenue was up 13.4% on a year-over-year basis. Sell-side analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is reportedly considering launching always-on, linear-style TV channels. The move could increase viewing time, improve content discovery and create additional advertising opportunities by combining the familiarity of cable with streaming distribution. Netflix Killed Cable TV. Now the Streaming Giant Wants to Bring It Back
• Positive Sentiment: A Grand Theft Auto VI extended gameplay trailer is scheduled to premiere on Netflix on August 27, potentially attracting substantial attention and new engagement to the platform. The direct financial benefit is uncertain, but the partnership could strengthen Netflix’s position in interactive entertainment. Take-Two Stock Slips Despite News of a GTA VI Trailer Coming to Netflix
• Neutral Sentiment: Netflix’s latest quarter modestly exceeded EPS expectations, while revenue narrowly missed forecasts. Revenue nevertheless increased 13.4% year over year, suggesting the business is still expanding but at a pace that may not satisfy investors accustomed to faster growth.
• Neutral Sentiment: Analyst opinion remains generally constructive, with a consensus “Moderate Buy” rating and an average price target above the current trading level. However, recent target-price reductions and downgrades indicate that Wall Street is recalibrating expectations.
• Negative Sentiment: Netflix shares slipped after CEO Ted Sarandos and Chief Product Officer David Hyman disclosed planned sales under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards. Because the sales were scheduled and tax-related, they are not necessarily a signal of deteriorating fundamentals, but the filings can weigh on sentiment. Netflix Insider Plans Stock Sale as NFLX Shares Slip
• Negative Sentiment: Investors are concerned that Netflix is disclosing less engagement data, making it harder to assess viewing trends, content performance and subscriber momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: Competition is intensifying as YouTube Premium plans to bundle Peacock and NBCUniversal sports, potentially increasing pressure on Netflix’s share of viewers, subscriptions and entertainment spending. Netflix and MercadoLibre Are Underperforming the S&P 500

Institutional Trading of Netflix

Institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after purchasing an additional 351,493,659 shares during the period. State Street Corp lifted its holdings in Netflix by 927.6% in 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 grew its position 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 worth $9,305,336,000 after buying an additional 89,558,684 shares during the last quarter. Capital World Investors grew its position 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 worth $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Finally, Morgan Stanley increased its stake in shares of Netflix by 903.0% during the fourth quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock valued at $8,002,414,000 after buying an additional 76,840,318 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have commented on NFLX shares. Seaport Research Partners downgraded shares of Netflix from a “buy” rating to a “neutral” rating in a research note on Monday, July 20th. Morgan Stanley reissued an “overweight” rating and issued a $90.00 price target (down from $115.00) on shares of Netflix in a research note on Tuesday, July 14th. Jefferies Financial Group reduced their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a research note on Wednesday, June 10th. CLSA started coverage on Netflix in a research note on Monday, July 20th. They issued an “outperform” rating for the company. Finally, Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday, July 19th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and an average price target of $103.48.

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.