Netflix (NASDAQ:NFLX) Trading Down 2.4% – Should You Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) fell 2.4% during trading on Tuesday . The company traded as low as $92.37 and last traded at $92.58. 61,402,313 shares were traded during trading, an increase of 25% from the average session volume of 49,028,234 shares. The stock had previously closed at $94.83.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Board approves an additional $25 billion share buyback (no expiration), boosting total buyback capacity and lifting sentiment because it reduces float and signals management confidence. Netflix announces $25 billion share buyback
• Positive Sentiment: Daiwa raised its price target to $102 and kept an “outperform” rating, implying upside from current levels and adding analyst support to the rally. Daiwa adjusts price target on Netflix to $102
• Positive Sentiment: Notable investors continue buying — Cathie Wood/ARK remains active in Netflix, which can attract momentum flows and institutional interest. Cathie Wood Keeps Buying Netflix Stock
• Positive Sentiment: Product/engagement initiatives: Netflix is rolling out a TikTok-style vertical video feed to boost mobile engagement and discovery — a potential long-term driver of retention and ad revenue. Netflix Eyes TikTok-Style Feed To Capture ‘Snackable’ Viewing
• Neutral Sentiment: Netflix is in talks to buy Radford Studio Center (historic LA lot) — could lower production costs and secure supply but requires capital and integration. Netflix In Negotiations To Buy Radford Studios
• Neutral Sentiment: Industry consolidation update: Warner Bros. Discovery shareholders approved a sale to Paramount (Netflix was a losing bidder) — larger competitor consolidation may change licensing/competitive dynamics but outcome still subject to antitrust review. Warner Bros. investors approve $110 billion sale to Paramount Skydance
• Negative Sentiment: Sell-off pressure from earnings/guidance: NFLX plunged after Q1 results/softer Q2 guidance — profit fell short of estimates and management set conservative near-term guidance, which remains the main reason for today’s weakness. Netflix (NFLX) Stock Plunges 13%

Wall Street Analyst Weigh In

A number of research firms recently commented on NFLX. Rosenblatt Securities dropped their price target on shares of Netflix from $96.00 to $95.00 and set a “neutral” rating for the company in a research note on Friday, April 17th. Royal Bank Of Canada reaffirmed a “hold” rating on shares of Netflix in a research note on Wednesday, January 21st. Erste Group Bank raised shares of Netflix from a “hold” rating to a “buy” rating in a research note on Tuesday, March 24th. Oppenheimer set a $120.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research note on Friday, April 17th. Finally, Canaccord Genuity Group set a $125.00 price target on shares of Netflix and gave the stock a “buy” rating in a research note on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Netflix currently has an average rating of “Moderate Buy” and an average target price of $114.53.

Netflix Stock Performance

The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.19 and a current ratio of 1.41. The firm has a market cap of $390.85 billion, a P/E ratio of 29.98, a price-to-earnings-growth ratio of 1.20 and a beta of 1.67. The firm’s fifty day moving average price is $92.95 and its 200 day moving average price is $97.90.

Netflix (NASDAQ:NFLX) last posted its quarterly 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. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. During the same quarter in the previous year, the business posted $6.61 EPS. The company’s quarterly 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. Sell-side analysts expect that Netflix, Inc. will post 3.53 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Spencer Adam Neumann sold 28,630 shares of the business’s stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $98.00, for a total value of $2,805,740.00. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $7,231,126. The trade was a 27.95% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the business’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $83.24, for a total transaction of $2,273,450.88. Following the completion of the sale, the chief executive officer owned 122,140 shares of the company’s stock, valued at approximately $10,166,933.60. This represents a 18.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 1,487,794 shares of company stock worth $136,255,772. 1.37% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of NFLX. Vanguard Group Inc. raised its stake in shares of Netflix by 912.5% during the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp raised its stake in shares of Netflix by 927.6% during the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after acquiring an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC raised its stake 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 worth $9,305,336,000 after acquiring an additional 89,558,684 shares in 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 acquiring an additional 80,025,890 shares in the last quarter. Finally, Morgan Stanley raised its stake in shares of Netflix by 903.0% during the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network’s stock worth $8,002,414,000 after acquiring an additional 76,840,318 shares in the last quarter. 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.