Netflix (NASDAQ:NFLX) Trading Down 7.3% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) was down 7.3% on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $118.00 to $85.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Netflix traded as low as $65.08 and last traded at $68.95. Approximately 141,335,396 shares changed hands during trading, an increase of 208% from the average daily volume of 45,892,918 shares. The stock had previously closed at $74.35.

A number of other brokerages also recently commented on NFLX. Erste Group Bank downgraded Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Jefferies Financial Group lowered their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research report on Wednesday, June 10th. UBS Group dropped their price objective on Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a report on Friday. KeyCorp reissued an “overweight” rating and set a $92.00 target price (down from $115.00) on shares of Netflix in a research report on Monday. Finally, Weiss Ratings cut Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, June 26th. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and sixteen have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $103.97.

Insider Buying and Selling at Netflix

In other news, CEO Gregory K. Peters sold 27,312 shares of the business’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.69, for a total value of $2,422,301.28. Following the completion of the sale, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the completion of the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 899,839 shares of company stock valued at $80,141,661. 1.24% of the stock is owned by insiders.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix continues to expand engagement drivers such as short-form content, video games, podcasts, ads, and live programming, which could create new monetization opportunities. Ad Engagement & Content Opportunities Offer Bullish Edge for NFLX
• Positive Sentiment: Several analysts still see upside and reiterated bullish ratings, arguing Netflix remains a high-quality asset with margin expansion and ad growth potential. Netflix: Solid Q2 Results and Structural Growth Story Support Buy Rating with Unchanged $125 Price Target
• Positive Sentiment: JPMorgan and other firms lowered price targets after earnings, but still maintained positive ratings, suggesting the selloff may have created a lower entry point for long-term investors. Analyst price target changes
• Neutral Sentiment: Netflix’s AI initiatives, including use of generative AI in production workflows, were highlighted as a cost-efficiency story, but they have not been enough to reaccelerate the stock. Why Netflix’s AI Push Isn’t Reviving the Stock
• Negative Sentiment: Q3 revenue and EPS guidance missed estimates, reinforcing worries that Netflix’s growth is decelerating faster than expected. Netflix third-quarter earnings forecast falls shy of Wall Street expectations
• Negative Sentiment: The company’s plan to provide viewership data only annually starting in 2027 has raised concerns that investors will have less visibility into a key operating metric. Netflix is getting stingier about its viewing data, and Wall Street isn’t happy
• Negative Sentiment: Analysts and media reports point to slowing revenue growth, rising competition, and a weaker-than-hoped outlook as the main reasons NFLX is being sold off. Netflix is paying up for costly sports rights. Is the company making the right bets?

Institutional Investors Weigh In On Netflix

Several large investors have recently modified their holdings of NFLX. Checchi Capital Advisers LLC increased its holdings in Netflix by 875.7% during the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock valued at $2,920,000 after acquiring an additional 27,951 shares in the last quarter. Contravisory Investment Management Inc. lifted its holdings in shares of Netflix by 837.2% in the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock valued at $10,443,000 after purchasing an additional 99,496 shares in the last quarter. BNC Wealth Management LLC lifted its holdings in shares of Netflix by 991.3% in the fourth quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock valued at $3,866,000 after purchasing an additional 37,451 shares in the last quarter. Crew Capital Management Ltd grew its position in shares of Netflix by 1,021.9% in the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock valued at $847,000 after purchasing an additional 8,226 shares during the last quarter. Finally, Family Capital Trust Co grew its position in shares of Netflix by 20,869.5% in the fourth quarter. Family Capital Trust Co now owns 27,470 shares of the Internet television network’s stock valued at $2,576,000 after purchasing an additional 27,339 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Stock Performance

The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The stock’s 50 day moving average price is $80.52 and its two-hundred day moving average price is $87.03. The firm has a market capitalization of $290.33 billion, a PE ratio of 22.27, a PEG ratio of 0.94 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same period in the previous year, the firm posted $0.72 EPS. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. On average, equities analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current year.

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.