Gregory Peters Sells 27,312 Shares of Netflix (NASDAQ:NFLX) Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Gregory Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

Netflix Stock Performance

Shares of NASDAQ NFLX traded down $0.51 during mid-day trading on Thursday, hitting $73.69. The company had a trading volume of 28,776,787 shares, compared to its average volume of 45,609,168. The stock’s 50-day moving average price is $75.81 and its 200-day moving average price is $85.05. The company has a market capitalization of $306.84 billion, a price-to-earnings ratio of 23.19, a P/E/G ratio of 0.92 and a beta of 1.52. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix, Inc. has a 1 year low of $65.08 and a 1 year high of $126.71.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share 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 during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the previous year, the firm earned $0.72 EPS. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. On average, sell-side analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Seaport Research Partners cut shares of Netflix from a “buy” rating to a “neutral” rating in a report on Monday, July 20th. HSBC lifted their price target on Netflix from $106.00 to $114.00 and gave the company a “buy” rating in a research report on Friday, April 10th. Wedbush decreased their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research report on Friday, July 17th. Weiss Ratings lowered shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, June 26th. Finally, Sanford C. Bernstein set a $95.00 price target on shares of Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $103.48.

Key Headlines 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

Hedge Funds Weigh In On Netflix

A number of large investors have recently added to or reduced their stakes in the business. Imprint Wealth LLC bought a new position in Netflix during the 3rd quarter worth approximately $25,000. Wealth Watch Advisors INC purchased a new position in shares of Netflix in the third quarter worth $103,000. Strategic Wealth Investment Group LLC bought a new stake in Netflix during the 2nd quarter valued at $121,000. Wiser Advisor Group LLC purchased a new stake in Netflix during the 3rd quarter valued at $114,000. Finally, Beaird Harris Wealth Management LLC increased its position in shares of Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after acquiring an additional 10 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.