Netflix (NASDAQ:NFLX) CEO Sells $1,737,589.44 in Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Gregory Peters sold 27,312 shares of the company’s stock in a transaction on Monday, November 9th. The stock was sold at an average price of $63.62, for a total transaction of $1,737,589.44. Following the completion of the transaction, the chief executive officer directly owned 119,412 shares of the company’s stock, valued at approximately $7,596,991.44. The trade was a 18.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website.

Netflix Stock Down 1.1%

NASDAQ NFLX traded down $0.69 during trading on Tuesday, hitting $63.26. The stock had a trading volume of 27,196,231 shares, compared to its average volume of 47,136,484. The company has a market capitalization of $259.77 billion, a PE ratio of 21.83, a P/E/G ratio of 0.94 and a beta of 1.62. The company’s 50-day moving average price is $70.32 and its two-hundred day moving average price is $80.76. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07. Netflix, Inc. has a 12 month low of $61.39 and a 12 month high of $116.73.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share for the quarter, topping analysts’ consensus estimates of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The firm had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. During the same quarter in the prior year, the firm posted $0.59 EPS. The business’s revenue was up 11.9% on a year-over-year basis. As a group, sell-side analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Morgan Stanley set a $77.00 price target on shares of Netflix and gave the stock an “overweight” rating in a research report on Wednesday, October 21st. UBS Group set a $90.00 price objective on Netflix in a report on Wednesday, October 21st. KeyCorp decreased their price objective on Netflix from $92.00 to $85.00 and set an “overweight” rating for the company in a report on Tuesday, October 13th. Loop Capital lowered their target price on Netflix from $115.00 to $95.00 and set a “buy” rating on the stock in a research report on Friday, July 24th. Finally, Rosenblatt Securities set a $71.00 target price on Netflix and gave the stock a “neutral” rating in a report on Wednesday, October 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $89.14.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently bought and sold shares of the company. Clal Insurance Enterprises Holdings Ltd acquired a new stake in Netflix during the 2nd quarter valued at $26,000. Pathway Financial Advisers LLC acquired a new position in shares of Netflix in the third quarter valued at $26,000. Sawyer & Company Inc acquired a new position in shares of Netflix in the third quarter valued at $27,000. Compound Global Advisors LLC acquired a new position in shares of Netflix in the second quarter valued at $29,000. Finally, Burnham & Co LLC bought a new position in shares of Netflix in the second quarter valued at about $29,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s EMEA revenue grew 11% year over year in the third quarter. Management says sustaining that growth in Europe will depend partly on preserving creative freedom amid regulation. Article: Netflix boss says creativity and regulation are not happy bedfellows in Europe
• Neutral Sentiment: Netflix launched an international campaign using 35mm film, supported by a social series about creatives’ viewing tastes. The campaign may support brand engagement, but its financial impact is unclear. Article: Netflix embraces 35mm film in international campaign
• Neutral Sentiment: A report described November short interest as totaling zero shares, with a 0.0-day days-to-cover ratio. That figure does not indicate meaningful short positioning, despite the report’s claim of a large increase.
• Negative Sentiment: Investor confidence remains a concern: coverage cites slowing Netflix growth and evidence that viewers are watching less. A content leadership shake-up is among management’s steps to address the challenge, but the concerns weigh on the growth outlook. Article: Why Netflix Stock Plunged 11% in October
• Negative Sentiment: Netflix also declined amid weakness across entertainment stocks. Coverage linked the sector’s reaction to concerns about the film outlook and debt at the newly combined Warner Bros.–Paramount, though it characterized Netflix and Disney as relatively less affected. Article: Skydance Sinks as Warner Bros. Film Slump Overshadows Earnings Beat

About Netflix

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.