Netflix (NASDAQ:NFLX) Stock Price Down 2.3% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s share price was down 2.3% during trading on Monday . The stock traded as low as $85.10 and last traded at $85.45. Approximately 39,870,797 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 46,827,230 shares. The stock had previously closed at $87.49.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Texas Attorney General Ken Paxton has sued Netflix over allegations that it collected users’ data without proper consent and profited from sensitive behavioral information, creating legal and compliance risk for the company. Reuters article
• Negative Sentiment: Additional reports say the lawsuit also accuses Netflix of collecting children’s data and running an “addictive” platform, which could increase scrutiny from regulators and lawmakers. CNET article
• Neutral Sentiment: Netflix remains a major topic in media and advertising coverage, including this week’s TV upfronts, where its ad-supported strategy and pricing power continue to be discussed by advertisers and industry peers. CNBC article
• Neutral Sentiment: Separate commentary on Netflix’s recent price increase to $19.99 for its standard ad-free plan highlights ongoing monetization strength, but it does not directly offset the legal overhang today. CNBC article
• Neutral Sentiment: A reported increase in short interest appears unreliable because the filing shows zero shares and a zero-day short-interest ratio, so it is unlikely to be a meaningful trading signal.

Wall Street Analyst Weigh In

Several equities analysts have commented on NFLX shares. Robert W. Baird cut their price objective on Netflix from $150.00 to $120.00 and set an “outperform” rating on the stock in a research report on Friday, January 23rd. Wolfe Research reaffirmed an “outperform” rating and issued a $107.00 price objective on shares of Netflix in a research report on Friday, April 17th. Loop Capital set a $104.00 price objective on Netflix in a research report on Tuesday, January 27th. Rosenblatt Securities cut their price objective on Netflix from $96.00 to $95.00 and set a “neutral” rating on the stock in a research report on Friday, April 17th. Finally, Royal Bank Of Canada reissued a “hold” rating on shares of Netflix in a research report on Wednesday, January 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating and fifteen have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $114.82.

Netflix Stock Down 2.3%

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 business has a 50-day moving average price of $95.44 and a 200-day moving average price of $95.75. The firm has a market cap of $359.81 billion, a P/E ratio of 27.60, a P/E/G ratio of 1.11 and a beta of 1.55.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The business had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. During the same quarter in the prior year, the company earned $6.61 EPS. The business’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. On average, equities analysts forecast that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insider Transactions at Netflix

In related news, Director Reed Hastings sold 420,550 shares of the company’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the completion of the sale, the director directly owned 3,940 shares in the company, valued at $376,230.60. This represents a 99.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $83.24, for a total value of $2,273,450.88. Following the sale, the chief executive officer owned 122,140 shares of the company’s stock, valued at $10,166,933.60. This trade represents a 18.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,453,217 shares of company stock worth $137,676,777 over the last quarter. 1.37% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

A number of hedge funds have recently made changes to their positions in the stock. Apriem Advisors lifted its stake in shares of 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 purchasing an additional 9 shares during the last quarter. Tortoise Investment Management LLC lifted its stake 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 worth $110,000 after purchasing an additional 9 shares during the last quarter. Brass Tax Wealth Management Inc. lifted its stake 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 worth $345,000 after purchasing an additional 9 shares during the last quarter. Pacific Sun Financial Corp lifted its stake 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 worth $688,000 after purchasing an additional 9 shares during the last quarter. Finally, TFC Financial Management Inc. lifted its stake in shares of Netflix by 14.9% during the 3rd quarter. TFC Financial Management Inc. now owns 77 shares of the Internet television network’s stock worth $92,000 after purchasing an additional 10 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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.