Netflix (NASDAQ:NFLX) Stock Price Down 1.1% on Insider Selling

Shares of Netflix, Inc. (NASDAQ:NFLX) traded down 1.1% during mid-day trading on Tuesday after an insider sold shares in the company. The company traded as low as $62.60 and last traded at $63.26. 26,820,907 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 42,696,727 shares. The stock had previously closed at $63.95.

Specifically, CEO Gregory Peters sold 27,312 shares of the company’s stock in a transaction that occurred on Monday, November 9th. The shares were sold at an average price of $63.62, for a total value of $1,737,589.44. Following the transaction, the chief executive officer owned 119,412 shares in the company, valued at approximately $7,596,991.44. This represents a 18.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Spencer Neumann sold 9,253 shares of the firm’s stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $66.15, for a total value of $612,085.95. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at $4,881,010.05. This trade represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other news, CEO Theodore Sarandos sold 27,312 shares of the firm’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $66.20, for a total transaction of $1,808,054.40. Following the transaction, the chief executive officer owned 178,954 shares in the company, valued at approximately $11,846,754.80. This trade represents a 13.24% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of recent analyst reports. HSBC cut shares of Netflix from a “buy” rating to a “hold” rating and decreased their price target for the company from $96.00 to $76.00 in a report on Tuesday, September 22nd. President Capital dropped their price objective on Netflix from $134.00 to $83.00 and set a “buy” rating on the stock in a research note on Monday, July 20th. Rosenblatt Securities set a $71.00 price objective on Netflix and gave the stock a “neutral” rating in a research report on Wednesday, October 21st. KeyCorp decreased their target price on Netflix from $92.00 to $85.00 and set an “overweight” rating for the company in a research note on Tuesday, October 13th. Finally, New Street Research raised their target price on Netflix from $96.00 to $102.00 and gave the company a “neutral” rating in a report on Friday, July 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $89.14.

Netflix News Roundup

Investors following NFLX have been watching these news items:

• Neutral Sentiment: A steep valuation reset has left Netflix trading at a much lower earnings multiple than before. That may offer value support, though it does not by itself resolve concerns about the business outlook. Article: Netflix trades under 18x earnings after a steep valuation reset
• Negative Sentiment: Investors are concerned that rising content investment could weigh on Netflix’s free cash flow, even with strong cash generation. The spending may be harder to justify if engagement and growth are slowing. Article: Will Content Capex Weigh on Netflix’s Free Cash Flow Trajectory?
• Negative Sentiment: Commentary highlights slower viewing engagement, competition from YouTube and a costly content strategy as factors testing investor confidence. One report says NFLX has fallen sharply from its 2025 peak, reflecting persistent skepticism about its growth prospects. Article: Netflix Wipes Out Five Years of Gains

Netflix Stock Down 2.9%

The stock has a market cap of $257.43 billion, a price-to-earnings ratio of 18.12, a PEG ratio of 0.93 and a beta of 1.62. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07. The firm’s 50-day simple moving average is $70.00 and its two-hundred day simple moving average is $80.65.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. The company had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The firm’s quarterly revenue was up 11.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.59 EPS. On average, sell-side analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Institutional Trading of Netflix

Hedge funds have recently made changes to their positions in the business. Financial Avengers Inc. boosted its stake in shares of Netflix by 9.8% in the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after buying an additional 115 shares during the period. Conservest Capital Advisors Inc. increased its stake in Netflix by 5.7% during the 1st quarter. Conservest Capital Advisors Inc. now owns 2,445 shares of the Internet television network’s stock worth $235,000 after acquiring an additional 131 shares during the period. Wisconsin Wealth Advisors LLC increased its stake in Netflix by 2.6% during the 2nd quarter. Wisconsin Wealth Advisors LLC now owns 5,324 shares of the Internet television network’s stock worth $380,000 after acquiring an additional 136 shares during the period. Wealthgarden F.S. LLC increased its stake in Netflix by 1.7% during the 1st quarter. Wealthgarden F.S. LLC now owns 8,570 shares of the Internet television network’s stock worth $824,000 after acquiring an additional 145 shares during the period. Finally, Alternative Investment Advisors LLC. raised its holdings in Netflix by 4.8% in the 2nd quarter. Alternative Investment Advisors LLC. now owns 3,230 shares of the Internet television network’s stock valued at $231,000 after acquiring an additional 147 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

About Netflix

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.