Netflix (NASDAQ:NFLX) Trading Down 1.5% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 1.5% during mid-day trading on Monday after Wolfe Research lowered their price target on the stock from $139.00 to $121.00. Wolfe Research currently has an outperform rating on the stock. Netflix traded as low as $93.53 and last traded at $93.77. Approximately 39,571,227 shares changed hands during trading, a decline of 3% from the average daily volume of 40,788,094 shares. The stock had previously closed at $95.19.

Several other equities analysts also recently issued reports on the stock. Evercore ISI reaffirmed an “outperform” rating and set a $138.00 price objective on shares of Netflix in a report on Friday, December 5th. Huber Research lowered shares of Netflix to a “buy” rating in a research note on Friday, December 5th. Canaccord Genuity Group reiterated a “buy” rating and issued a $152.50 price objective on shares of Netflix in a report on Monday, December 8th. Argus set a $141.00 target price on Netflix in a report on Thursday, October 23rd. Finally, Cowen restated a “buy” rating on shares of Netflix in a research report on Monday, December 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $130.51.

Insiders Place Their Bets

In other news, CEO Theodore A. Sarandos sold 20,270 shares of the business’s stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $109.21, for a total transaction of $2,213,646.16. Following the transaction, the chief executive officer directly owned 151,680 shares in the company, valued at $16,564,669.44. The trade was a 11.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider David A. Hyman sold 314,620 shares of the stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total value of $34,603,166.08. Following the completion of the sale, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $34,765,942.40. This represents a 49.88% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,619,840 shares of company stock worth $181,648,613. 1.37% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its holdings in shares of Netflix by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock valued at $46,183,983,000 after buying an additional 142,238 shares during the period. State Street Corp boosted its holdings in Netflix by 2.1% during the 2nd quarter. State Street Corp now owns 17,444,013 shares of the Internet television network’s stock valued at $23,359,801,000 after acquiring an additional 360,604 shares during the period. Price T Rowe Associates Inc. MD grew its position in Netflix by 2.7% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network’s stock valued at $10,940,505,000 after acquiring an additional 304,399 shares in the last quarter. Geode Capital Management LLC increased its stake in Netflix by 2.4% during the second quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network’s stock worth $13,234,278,000 after purchasing an additional 229,182 shares during the period. Finally, Norges Bank purchased a new stake in Netflix during the second quarter worth about $7,929,645,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Price Performance

The company’s 50-day moving average price is $110.58 and its 200-day moving average price is $118.29. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.56. The firm has a market cap of $397.33 billion, a price-to-earnings ratio of 39.17 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last announced its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share for the quarter, topping the consensus estimate of $0.69 by $5.18. The firm had revenue of $11.32 billion for the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. The firm’s revenue for the quarter was up 17.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.54 EPS. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. On average, equities research analysts forecast that Netflix, Inc. will post 24.58 EPS for the current year.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.