Netflix (NASDAQ:NFLX) Shares Gap Down – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s share price gapped down before the market opened on Friday . The stock had previously closed at $103.22, but opened at $98.78. Netflix shares last traded at $103.2180, with a volume of 29,045,419 shares changing hands.

Analyst Ratings Changes

Several brokerages have recently issued reports on NFLX. Loop Capital reduced their target price on Netflix from $135.00 to $132.50 in a report on Wednesday, October 22nd. Needham & Company LLC reaffirmed a “buy” rating and issued a $150.00 price objective on shares of Netflix in a research note on Wednesday, October 22nd. Seaport Res Ptn raised Netflix from a “hold” rating to a “strong-buy” rating in a report on Monday, October 6th. Citic Securities lowered their target price on Netflix from $128.00 to $125.00 and set a “hold” rating for the company in a research report on Wednesday, October 29th. Finally, Zacks Research lowered shares of Netflix from a “strong-buy” rating to a “hold” rating in a report on Monday, September 1st. Two investment analysts have rated the stock with a Strong Buy rating, thirty-one have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Netflix currently has an average rating of “Moderate Buy” and a consensus target price of $134.54.

Netflix Trading Down 2.8%

The stock has a market cap of $424.92 billion, a PE ratio of 41.92, a PEG ratio of 1.54 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.33 and a current ratio of 1.33. The stock has a fifty day moving average price of $113.27 and a 200 day moving average price of $119.25.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.69 by $5.18. The company had revenue of $11.32 billion during the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a return on equity of 41.86% and a net margin of 24.05%.Netflix’s revenue was up 17.2% on a year-over-year basis. During the same period last year, the company earned $0.54 earnings per share. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Equities analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Activity

In related news, Director Reed Hastings sold 421,760 shares of the company’s stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $117.19, for a total transaction of $49,426,897.92. Following the transaction, the director directly owned 3,940 shares in the company, valued at approximately $461,736.48. This represents a 99.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Gregory K. Peters sold 20,270 shares of the firm’s stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $109.57, for a total transaction of $2,220,943.36. Following the completion of the sale, the chief executive officer directly owned 127,810 shares of the company’s stock, valued at approximately $14,003,886.08. The trade was a 13.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,619,840 shares of company stock worth $181,648,613 in the last 90 days. Company insiders own 1.37% of the company’s stock.

Hedge Funds Weigh In On Netflix

Large investors have recently bought and sold shares of the business. Optima Capital LLC grew its holdings in shares of Netflix by 3.5% in the second quarter. Optima Capital LLC now owns 239 shares of the Internet television network’s stock worth $320,000 after purchasing an additional 8 shares during the last quarter. Unified Investment Management lifted its holdings in Netflix by 1.7% during the 2nd quarter. Unified Investment Management now owns 474 shares of the Internet television network’s stock valued at $635,000 after buying an additional 8 shares in the last quarter. Plancorp LLC boosted its position in Netflix by 0.6% in the 2nd quarter. Plancorp LLC now owns 1,278 shares of the Internet television network’s stock valued at $1,711,000 after buying an additional 8 shares during the period. Five Oceans Advisors grew its stake in Netflix by 1.1% in the 2nd quarter. Five Oceans Advisors now owns 751 shares of the Internet television network’s stock worth $1,006,000 after acquiring an additional 8 shares in the last quarter. Finally, Old Port Advisors increased its position in shares of Netflix by 1.3% during the second quarter. Old Port Advisors now owns 624 shares of the Internet television network’s stock worth $836,000 after acquiring an additional 8 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.