Netflix (NASDAQ:NFLX) Stock Price Down 2% on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares dropped 2% on Monday after Seaport Research Partners downgraded the stock from a buy rating to a neutral rating. The company traded as low as $66.69 and last traded at $67.60. 60,421,264 shares traded hands during trading, an increase of 31% from the average session volume of 46,003,379 shares. The stock had previously closed at $68.95.

Several other analysts have also recently commented on NFLX. KGI Securities cut Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price on the stock. in a research report on Friday. Bank of America reiterated a “buy” rating and issued a $125.00 price objective on shares of Netflix in a report on Monday, May 18th. Wells Fargo & Company set a $80.00 target price on Netflix and gave the stock an “equal weight” rating in a report on Friday. DZ Bank restated a “buy” rating on shares of Netflix in a research report on Friday, April 17th. Finally, Deutsche Bank Aktiengesellschaft set a $110.00 target price on Netflix in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $104.21.

Insider Activity at Netflix

In other news, CFO Spencer Adam Neumann sold 9,253 shares of the business’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. The trade was a 11.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider David A. Hyman sold 5,722 shares of the company’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total value of $503,993.76. Following the completion of the transaction, the insider directly owned 316,100 shares in the company, valued at approximately $27,842,088. The trade was a 1.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 899,839 shares of company stock worth $80,141,661. 1.24% of the stock is currently owned by company insiders.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Some analysts turned bullish after the sell-off, arguing that Netflix’s long-term growth drivers — including advertising, international revenue, and live events — are intact, and that the post-earnings drop may have created an attractive entry point. Why Netflix Stock Got an Upgrade After Earnings Slump
• Positive Sentiment: Phillip Securities upgraded Netflix to Buy, saying engagement does not appear to be slowing and setting a $110 target, reinforcing the view that the recent decline may be overdone. Netflix Stock Forecast Gets Hiked from Hold to Buy as Analyst Sees ‘No Signs of Slowing Engagement’
• Positive Sentiment: Several bullish commentaries argue the stock’s sharp drop has pushed valuation to levels that may appeal to long-term investors who believe Netflix remains the streaming leader. Netflix Crashes to a 52-Week Low After Earnings. Why This Is the Best Time to Buy NFLX Stock.
• Neutral Sentiment: Netflix returned to the bond market for the first time in two years, a financing move that is notable but not clearly positive or negative for the stock by itself. Netflix returns to the bond market for the first time in two years
• Negative Sentiment: Netflix’s weak Q3 guidance and slower growth outlook have prompted multiple analyst cuts, including lower price targets from firms such as UBS, Wedbush, TD Cowen, and Pivotal Research, which is weighing on sentiment. Why Is Netflix Stock Falling Monday?
• Negative Sentiment: Investors are also worried about softer margin trends, lower free cash flow, and reduced transparency around engagement data, all of which add to the case for a more cautious near-term view. Why Netflix Stock Fell This Past Week

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. First Financial Corp IN increased its stake in shares of Netflix by 900.0% in the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 243 shares during the period. DiNuzzo Private Wealth Inc. lifted its position in shares of Netflix by 885.2% during the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock worth $25,000 after buying an additional 239 shares during the period. Turning Point Benefit Group Inc. boosted its stake in shares of Netflix by 13,400.0% in the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 268 shares in the last quarter. Imprint Wealth LLC acquired a new position in Netflix in the third quarter valued at about $25,000. Finally, Cornerstone Financial Management LLC acquired a new position in shares of Netflix in the 4th quarter worth approximately $26,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Trading Down 2.0%

The business has a 50 day simple moving average of $80.15 and a 200 day simple moving average of $86.85. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.41. The company has a market cap of $284.65 billion, a price-to-earnings ratio of 21.28, a price-to-earnings-growth ratio of 0.88 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.72 EPS. As a group, equities analysts forecast that Netflix, Inc. will post 3.6 EPS for the current year.

Netflix Company Profile

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.