David Hyman Sells 5,723 Shares of Netflix (NASDAQ:NFLX) Stock

Netflix, Inc. (NASDAQ:NFLX) insider David Hyman sold 5,723 shares of the company’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the sale, the insider directly owned 316,100 shares of the company’s stock, valued at $23,027,885. The trade was a 1.78% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Stock Performance

NFLX opened at $74.20 on Thursday. The company’s 50 day moving average is $75.81 and its 200 day moving average is $85.05. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a market cap of $308.96 billion, a price-to-earnings ratio of 23.36, a PEG ratio of 0.92 and a beta of 1.52. Netflix, Inc. has a 12-month low of $65.08 and a 12-month high of $126.71.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same period last year, the firm earned $0.72 earnings per share. The company’s quarterly revenue was up 13.4% on a year-over-year basis. On average, equities research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. reduced their target price on shares of Netflix from $118.00 to $85.00 and set an “overweight” rating for the company in a report on Friday, July 17th. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Netflix in a research note on Monday, July 20th. Jefferies Financial Group lowered their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a research report on Wednesday, June 10th. Finally, Erste Group Bank cut Netflix from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $103.48.

Institutional Investors Weigh In On Netflix

Several institutional investors have recently made changes to their positions in the company. Bridgewater Advisors Inc. bought a new position in Netflix during the 2nd quarter valued at about $6,149,000. SFE Investment Counsel bought a new stake in Netflix in the second quarter worth about $1,403,000. BIP Wealth LLC bought a new stake in Netflix in the second quarter worth about $1,482,000. Phillips Financial Management LLC purchased a new position in shares of Netflix during the second quarter valued at approximately $374,000. Finally, Compound Global Advisors LLC purchased a new position in shares of Netflix during the second quarter valued at approximately $29,000. Institutional investors own 80.93% of the company’s stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s cloud-gaming initiative is gaining traction, with monthly players reportedly increasing 11-fold since October. Investors may view this as a potential new engagement and growth engine beyond streaming and mobile games. Can NFLX Stock Compound Its Way Higher?
• Positive Sentiment: Some analysis argues that NFLX remains undervalued after its recent decline, citing Netflix’s scale, brand, content library and competitive moat. The company’s buybacks, strong profitability and lower valuation multiple could provide additional support. Netflix Faces Tougher Streaming Competition
• Neutral Sentiment: Options commentary recommends a calendar spread for investors expecting NFLX shares to remain relatively flat. This reflects a neutral near-term outlook rather than a clear directional catalyst. Netflix Calendar Spread: A Smart Play for a Neutral Outlook
• Neutral Sentiment: CEO Theodore Sarandos sold approximately $9.7 million of shares across two transactions, while insider David Hyman sold about $417,000. The sales were conducted under pre-arranged Rule 10b5-1 plans and were made to cover tax withholding on vested equity awards, reducing their signaling value. Netflix Insider Buying and Selling
• Negative Sentiment: Wall Street is increasingly concerned about Netflix’s engagement trends and the company’s decision to release less viewing data. Lower transparency may make it more difficult for investors to gauge content performance and user momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: YouTube Premium’s planned inclusion of Peacock and NBCUniversal sports content raises the competitive threat to Netflix by combining streaming entertainment and live sports in a broader bundle. This could pressure subscriber growth, viewing time and valuation. Is YouTube Going After Netflix?

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.