Netflix (NASDAQ:NFLX) Trading Down 2.2% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) traded down 2.2% on Wednesday after Moffett Nathanson lowered their price target on the stock from $120.00 to $115.00. Moffett Nathanson currently has a buy rating on the stock. Netflix traded as low as $76.76 and last traded at $76.96. 50,078,083 shares traded hands during trading, an increase of 13% from the average session volume of 44,312,461 shares. The stock had previously closed at $78.72.

Several other brokerages also recently commented on NFLX. Rosenblatt Securities reduced their target price on Netflix from $96.00 to $95.00 and set a “neutral” rating on the stock in a report on Friday, April 17th. Huber Research raised Netflix from a “strong sell” rating to a “strong-buy” rating in a report on Friday, February 27th. Piper Sandler reissued an “overweight” rating and issued a $115.00 target price (up from $103.00) on shares of Netflix in a report on Friday, April 17th. Erste Group Bank downgraded Netflix from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Finally, Needham & Company LLC reissued a “buy” rating on shares of Netflix in a report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $114.26.

Insider Activity

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total value of $2,402,636.64. Following the transaction, the chief executive officer directly owned 284,804 shares in the company, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 1,313,029 shares of company stock worth $120,315,776. 1.24% of the stock is owned by company insiders.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is still being viewed as a possible strategic acquirer in media, with rumors linking it to Lionsgate Studios; that keeps alive the possibility of Netflix using M&A to bolster its content library and long-term growth. Article Title
• Positive Sentiment: Several commentators argued Netflix may be near a technical bottom after a steep two-month decline, which could encourage dip-buying and support a rebound if selling pressure eases. Article Title
• Neutral Sentiment: Moffett Nathanson lowered its price target on Netflix to $115 from $120, but kept a Buy rating, signaling continued confidence despite a slightly less optimistic valuation view. Article Title
• Negative Sentiment: Netflix publicly denied interest in buying Lionsgate, disappointing traders who had bid up takeover hopes and adding to the view that the company may stay disciplined on acquisitions rather than pursue a big splash. Article Title
• Negative Sentiment: The Fox-Roku deal and related analysis suggest Netflix is losing strategic ground in the battle for streaming distribution and living-room control, which may weigh on sentiment toward NFLX even if the company’s core business remains strong. Article Title

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Apriem Advisors lifted its holdings in Netflix by 0.6% during the 3rd quarter. Apriem Advisors now owns 1,567 shares of the Internet television network’s stock worth $1,879,000 after buying an additional 9 shares in the last quarter. Tortoise Investment Management LLC raised its position in shares of Netflix by 10.8% during the 3rd quarter. Tortoise Investment Management LLC now owns 92 shares of the Internet television network’s stock valued at $110,000 after acquiring an additional 9 shares during the last quarter. Brass Tax Wealth Management Inc. raised its position in shares of Netflix by 3.2% during the 3rd quarter. Brass Tax Wealth Management Inc. now owns 288 shares of the Internet television network’s stock valued at $345,000 after acquiring an additional 9 shares during the last quarter. Pacific Sun Financial Corp raised its position in shares of Netflix by 1.6% during the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock valued at $688,000 after acquiring an additional 9 shares during the last quarter. Finally, RS Crum Inc. raised its position in shares of Netflix by 3.6% during the 3rd quarter. RS Crum Inc. now owns 288 shares of the Internet television network’s stock valued at $345,000 after acquiring an additional 10 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Stock Down 2.2%

The firm’s 50-day simple moving average is $90.19 and its 200 day simple moving average is $90.65. The company has a market cap of $324.06 billion, a P/E ratio of 24.86, a PEG ratio of 1.04 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41.

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

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.