Netflix (NASDAQ:NFLX) Stock Price Down 2.1% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX) fell 2.1% during trading on Monday . The stock traded as low as $75.71 and last traded at $76.02. 40,668,938 shares traded hands during trading, a decline of 10% from the average daily volume of 45,387,129 shares. The stock had previously closed at $77.65.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several bullish commentary pieces argue Netflix is attractively valued after its pullback and could rebound after its July 16 earnings report, with investors focusing on ad growth, live sports, and other new revenue drivers. 3 Reasons to Load Up on Netflix Stock Before July 16
• Positive Sentiment: Netflix was also highlighted on CNBC’s “Final Trades,” suggesting some market participants still see the stock as a favorable idea near term. Netflix, Alphabet, Nike And A Consumer Defensive Stock On CNBC’s ‘Final Trades’
• Positive Sentiment: Some recent coverage says Netflix has benefited from multiple tailwinds, reinforcing the view that its underlying business remains supported despite the share-price weakness. Netflix (NFLX) Gained From Multiple Tailwinds
• Neutral Sentiment: Netflix is drawing attention for a new “Little House on the Prairie” adaptation, which adds to its content pipeline but is not a clear near-term stock catalyst on its own. Netflix nods to nostalgia with new ‘Little House on the Prairie’ TV series
• Negative Sentiment: A bearish note says Netflix is facing an engagement problem because some of its biggest shows are losing viewers after early seasons, raising concerns about content retention and longer-term growth. Netflix (NFLX) Has a Second-Season Problem as Big Shows Lose Viewers, Shares Fall

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. The Goldman Sachs Group lowered shares of Netflix from a “neutral” rating to an “underweight” rating in a research report on Thursday, June 18th. Wolfe Research reaffirmed an “outperform” rating and set a $107.00 target price on shares of Netflix in a report on Friday, April 17th. New Street Research raised their price objective on Netflix from $96.00 to $102.00 in a research note on Friday, April 17th. China Renaissance lifted their price target on Netflix from $90.00 to $100.00 and gave the stock a “hold” rating in a research note on Friday, April 17th. Finally, Jefferies Financial Group decreased their target price on shares of Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a research note on Wednesday, June 10th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $114.26.

Netflix Stock Down 2.1%

The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a market cap of $320.11 billion, a P/E ratio of 24.55, a PEG ratio of 0.99 and a beta of 1.52. The company’s 50 day simple moving average is $83.46 and its 200-day simple moving average is $88.25.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating the consensus estimate of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. During the same period in the prior year, the firm earned $6.61 EPS. The company’s revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Research analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In related news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Spencer Adam Neumann sold 9,253 shares of Netflix stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the completion of the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 899,839 shares of company stock valued at $80,141,661. Company insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

A number of hedge funds have recently bought and sold shares of the business. Neville Rodie & Shaw Inc. lifted its stake in shares of Netflix by 222.3% in the 2nd quarter. Neville Rodie & Shaw Inc. now owns 14,180 shares of the Internet television network’s stock valued at $1,013,000 after purchasing an additional 9,780 shares during the last quarter. Private Client Services LLC boosted its stake in shares of Netflix by 22.1% during the 2nd quarter. Private Client Services LLC now owns 4,819 shares of the Internet television network’s stock worth $344,000 after purchasing an additional 872 shares during the period. Boltwood Capital Management boosted its stake in shares of Netflix by 40.3% during the 2nd quarter. Boltwood Capital Management now owns 6,647 shares of the Internet television network’s stock worth $475,000 after purchasing an additional 1,910 shares during the period. Trilogy Capital Inc. grew its holdings in Netflix by 6.3% during the 2nd quarter. Trilogy Capital Inc. now owns 52,063 shares of the Internet television network’s stock valued at $3,717,000 after purchasing an additional 3,068 shares during the last quarter. Finally, Cedar Mountain Advisors LLC raised its position in Netflix by 21.9% in the 2nd quarter. Cedar Mountain Advisors LLC now owns 1,278 shares of the Internet television network’s stock worth $91,000 after purchasing an additional 230 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.