Netflix (NASDAQ:NFLX) Stock Price Down 1.4% – Should You Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) were down 1.4% on Thursday . The stock traded as low as $75.30 and last traded at $75.31. 27,720,627 shares traded hands during mid-day trading, a decline of 35% from the average daily volume of 42,622,609 shares. The stock had previously closed at $76.41.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly rebuilt its Netflix position in the second quarter, suggesting the hedge fund believes the company’s current valuation and growth prospects are more attractive than during its earlier investment. Bill Ackman’s Pershing Square Took a New Stake in Netflix
• Positive Sentiment: Analysts highlighted Netflix’s rapidly expanding advertising business and aggressive share repurchases as potential sources of substantial future value, with one model projecting significant upside if those initiatives continue to scale. The Next $100 Billion of Netflix’s Value Could Come From Here
• Positive Sentiment: Netflix’s content chief defended the company’s ability to compete with YouTube, saying younger viewers still value longer-form programming. Live events, sports, and advertising are being positioned as tools to attract subscribers globally. Netflix Content Chief Discusses YouTube Threat
• Positive Sentiment: Historical analysis notes that Netflix’s previous declines of at least 35% eventually ended with the stock reaching new highs, providing a longer-term argument for investors who view the recent weakness as cyclical. Netflix Stock’s Historical Declines
• Neutral Sentiment: Netflix joined Amazon and YouTube in forming the Streaming Access and Choice Alliance, which will lobby for technology-neutral rules governing streaming distribution and live-sports rights. The effort could improve regulatory clarity, but it offers no immediate earnings impact. Netflix Joins a New Streaming Policy Coalition
• Negative Sentiment: Investors appear unconvinced that Netflix’s planned expansion into live sports will generate sufficient returns. Management is interested in “unmissable” events, including possible international NFL packages, but sports rights could raise programming costs and pressure margins. Netflix Defines Its Live Sports Strategy
• Negative Sentiment: A comparative analysis favored Disney, citing its diversified businesses, profitable streaming operations, content pipeline, and potentially more compelling valuation. That comparison may be weighing on Netflix as investors reassess relative upside among large streaming companies. Netflix vs. Disney

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Netflix in a research note on Thursday, August 20th. Loop Capital dropped their price target on Netflix from $115.00 to $95.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. HSBC cut their price target on Netflix from $104.00 to $96.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Citigroup reiterated a “market perform” rating on shares of Netflix in a research note on Monday, August 17th. Finally, Robert W. Baird set a $90.00 target price on shares of Netflix and gave the company an “outperform” rating in a research report on Wednesday, July 22nd. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $96.53.

Netflix Trading Down 1.4%

The business has a 50 day moving average of $75.85 and a two-hundred day moving average of $84.36. The firm has a market capitalization of $313.71 billion, a price-to-earnings ratio of 23.71, a P/E/G ratio of 1.10 and a beta of 1.53. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

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

Insiders Place Their Bets

In other news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the sale, the chief executive officer owned 120,931 shares in the company, valued at $8,893,265.74. This represents a 18.42% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the transaction, the chief executive officer directly owned 178,954 shares in the company, valued at $13,126,275.90. The trade was a 13.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 in the last three months. 1.24% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Hedge funds and other institutional investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in Netflix in the 2nd quarter valued at $24,902,221,000. Geode Capital Management LLC increased its position in shares of Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares during the last quarter. Capital World Investors raised its stake in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the period. Norges Bank bought a new stake in shares of Netflix during the 4th quarter worth $5,803,248,000. Finally, Invesco Ltd. raised its stake in shares of Netflix by 835.9% during the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network’s stock worth $4,075,062,000 after purchasing an additional 38,818,947 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 access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.