Netflix (NASDAQ:NFLX) Trading Down 3.2% – Time to Sell?

Netflix, Inc. (NASDAQ:NFLX) fell 3.2% on Tuesday . The company traded as low as $71.00 and last traded at $71.40. 48,619,396 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 45,361,922 shares. The stock had previously closed at $73.78.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is expanding distribution through Charter’s Spectrum App Store, giving customers a simpler way to purchase, activate, or upgrade Netflix plans. That could help widen reach and support subscriber growth. Netflix (NFLX) Lands Spectrum App Store Deal To Widen Streaming Access
• Positive Sentiment: Netflix renewed its hit series Nemesis for a second season, reinforcing the company’s ability to turn breakout shows into ongoing franchises that can keep viewers engaged. Netflix’s ‘Nemesis’ Season 2 Renewal Could Be A Major Win For Los Angeles
• Positive Sentiment: Analysts and market commentary continue to highlight Netflix’s expanding advertising platform as a growing revenue driver, which supports the company’s long-term monetization story. NFLX Continues to Expand Its Advertising Platform: What’s Ahead?
• Neutral Sentiment: Coverage this week also focused on Netflix’s potential interest in larger media assets such as NBCUniversal, which could be transformative but would likely raise integration and capital-allocation questions if pursued. Netflix could turn NBC into its biggest bet yet — and this time, the math actually works
• Negative Sentiment: Multiple stories about the sentencing of director Carl Rinsch for defrauding Netflix out of $11 million are adding reputational noise, even though the financial impact is not likely material. Director Who Defrauded Netflix Gets 30-Month Prison Term
• Negative Sentiment: Broader investor caution remains elevated ahead of Netflix’s upcoming earnings report, with recent commentary questioning whether the stock’s valuation and growth narrative can reaccelerate soon. Should You Buy Netflix Stock Before July 16?

Analysts Set New Price Targets

A number of research analysts recently commented on NFLX shares. Seaport Research Partners boosted their price target on Netflix from $115.00 to $119.00 and gave the stock a “buy” rating in a report on Friday, April 17th. Barclays set a $110.00 price objective on shares of Netflix and gave the company an “equal weight” rating in a report on Friday, April 17th. Morgan Stanley reiterated an “overweight” rating on shares of Netflix in a research report on Friday, April 17th. New Street Research boosted their target price on shares of Netflix from $96.00 to $102.00 in a report on Friday, April 17th. Finally, Citic Securities upped their target price on shares of Netflix from $95.00 to $107.00 and gave the stock a “hold” rating in a research report on Monday, April 27th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Netflix currently has an average rating of “Moderate Buy” and a consensus price target of $114.26.

Netflix Stock Down 3.2%

The business has a 50-day moving average of $85.01 and a 200 day moving average of $88.78. The company has a market capitalization of $300.65 billion, a PE ratio of 23.06, a P/E/G ratio of 0.94 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion during the quarter, compared to analysts’ expectations of $12.17 billion. During the same quarter last year, the business posted $6.61 EPS. The firm’s revenue for the quarter was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities research analysts predict that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were 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 in the company, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 1,349,019 shares of company stock valued at $123,105,721 in the last three months. Corporate insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several large investors have recently added to or reduced their stakes in NFLX. Vanguard Group Inc. raised 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 buying an additional 351,493,659 shares during the period. State Street Corp boosted its stake in Netflix by 927.6% during the fourth 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 position in Netflix by 892.0% during the fourth 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 position in Netflix by 859.1% during the fourth 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, Price T Rowe Associates Inc. MD raised its stake in shares of Netflix by 685.8% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock valued at $8,068,882,000 after acquiring an additional 75,107,069 shares during the period. 80.93% of the stock is owned by institutional investors.

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.