Netflix (NASDAQ:NFLX) Trading Down 2% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX) dropped 2% during mid-day trading on Friday . The company traded as low as $71.11 and last traded at $71.71. 35,753,002 shares changed hands during mid-day trading, a decline of 22% from the average daily volume of 45,872,523 shares. The stock had previously closed at $73.17.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix expanded its agreement with AMC Global Media to stream all 371 episodes of The Walking Dead universe worldwide under a reported five-year, $500 million deal. The franchise should strengthen Netflix’s international content lineup, although the company will lose exclusive U.S. rights. Netflix expands The Walking Dead deal
• Positive Sentiment: Walmart-owned Flipkart partnered with Netflix to offer loyalty members a monthly mobile streaming subscription after qualifying purchases. The arrangement could improve customer retention and provide Netflix with additional mobile-user acquisition in India. Flipkart Netflix partnership
• Neutral Sentiment: Netflix’s August release slate includes returning series such as Outer Banks, which may help viewing momentum, though the commercial impact of individual releases remains uncertain. August streaming lineup
• Negative Sentiment: Investor commentary remains focused on Netflix’s quarterly revenue miss, marginal earnings-per-share beat, weaker-than-expected operating metrics and free cash flow, as well as reduced transparency around engagement data. These concerns have intensified comparisons with faster-growing technology peers. Netflix earnings opinions
• Negative Sentiment: Erste Group Bank cut its fiscal 2027 earnings estimate, adding to concerns that Netflix’s growth and profitability outlook may be moderating.
• Negative Sentiment: A producer sued Netflix for $105 million over an allegedly lost copy of an unreleased Nicolas Cage film. Although the financial exposure is uncertain, the litigation creates additional legal and reputational risk. Producer lawsuit against Netflix
• Negative Sentiment: Reported insider trading shows 32 Netflix open-market sales and no purchases over the past six months, a potential sentiment headwind even though insider sales may reflect personal or scheduled transactions.

Analyst Upgrades and Downgrades

NFLX has been the topic of a number of research analyst reports. Wells Fargo & Company set a $80.00 price objective on shares of Netflix and gave the company an “equal weight” rating in a research report on Friday, July 17th. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Netflix in a research report on Monday, July 20th. Wolfe Research restated an “outperform” rating and set a $107.00 price target on shares of Netflix in a report on Friday, April 17th. Oppenheimer set a $85.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research note on Friday, July 17th. Finally, Citigroup downgraded shares of Netflix from a “buy” rating to a “positive” rating in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Netflix currently has a consensus rating of “Moderate Buy” and an average price target of $103.48.

Netflix Trading Down 2.0%

The company’s 50 day moving average price is $77.00 and its 200 day moving average price is $85.50. The company has a market cap of $298.60 billion, a price-to-earnings ratio of 22.57, a price-to-earnings-growth ratio of 0.92 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the previous year, the business earned $0.72 EPS. Netflix’s quarterly revenue was up 13.4% compared to the same quarter last year. Research analysts anticipate that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Activity at Netflix

In other Netflix news, Director Reed Hastings sold 386,700 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director directly owned 3,940 shares in the company, valued at $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the business’s stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 284,804 shares of the company’s stock, valued at $25,054,207.88. This represents a 8.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 492,289 shares of company stock valued at $42,186,530. Insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Pacific Sun Financial Corp grew its holdings in shares of Netflix by 1.6% in the third quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock worth $688,000 after acquiring an additional 9 shares during the period. Beaird Harris Wealth Management LLC lifted its holdings in Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock valued at $137,000 after acquiring an additional 10 shares during the period. Monograph Wealth Advisors LLC boosted its position in Netflix by 1.8% in the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock worth $913,000 after purchasing an additional 12 shares during the last quarter. Resources Management Corp CT ADV boosted its position in Netflix by 2.0% in the second quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock worth $1,110,000 after purchasing an additional 16 shares during the last quarter. Finally, Sompo Asset Management Co. Ltd. grew its stake in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock valued at $2,009,000 after purchasing an additional 20 shares during the period. 80.93% of the stock is owned by institutional investors.

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.