Netflix (NASDAQ:NFLX) Trading Down 1.3% – Time to Sell?

Netflix, Inc. (NASDAQ:NFLX) traded down 1.3% during mid-day trading on Thursday . The company traded as low as $70.86 and last traded at $70.90. 44,351,947 shares changed hands during trading, a decline of 2% from the average daily volume of 45,101,527 shares. The stock had previously closed at $71.84.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts and commentators argue Netflix now looks cheap relative to other high-growth tech names, suggesting the selloff may be creating a buying opportunity for long-term investors.
• Positive Sentiment: Netflix continues to push beyond streaming, highlighting new animated titles, gaming releases such as “Unhinged,” and upcoming FIFA World Cup and horror-themed game content, which could open additional revenue streams.
• Positive Sentiment: The company’s ad technology is gaining traction, with Omnicom’s new AI ad alliance with Netflix pointing to potential growth in targeted advertising and monetization.
• Neutral Sentiment: Recent articles from Zacks and other industry pieces note that Netflix remains a major player in a competitive media landscape, but they do not point to any immediate fundamental catalyst.
• Negative Sentiment: Multiple reports say Netflix’s share of streaming time is declining, raising concern that engagement and audience share may be slipping.
• Negative Sentiment: Investor worry about possible M&A activity and “desperate” strategic moves is adding to the weakness, as the market questions whether Netflix needs to do something big to reaccelerate growth.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on NFLX. Evercore assumed coverage on shares of Netflix in a report on Friday, February 27th. They issued an “outperform” rating and a $115.00 target price on the stock. TD Cowen restated a “buy” rating on shares of Netflix in a research report on Thursday, May 14th. President Capital raised their price objective on Netflix from $133.00 to $134.00 and gave the stock a “buy” rating in a research note on Tuesday, March 31st. Arete Research upgraded Netflix from a “neutral” rating to a “buy” rating in a report on Friday, February 27th. Finally, Needham & Company LLC reiterated a “buy” rating on shares of Netflix in a report on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, sixteen have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $114.26.

Netflix Stock Performance

The stock’s 50 day moving average is $87.07 and its two-hundred day moving average is $89.31. The stock has a market capitalization of $298.55 billion, a price-to-earnings ratio of 22.90, a price-to-earnings-growth ratio of 0.93 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The firm had revenue of $12.25 billion for the quarter, compared to the consensus estimate of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The company’s revenue for the quarter was up 16.2% on a year-over-year basis. During the same quarter last year, the business posted $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Analysts expect that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In other news, insider David A. Hyman sold 5,722 shares of the business’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total value of $503,993.76. Following the sale, the insider owned 316,100 shares of the company’s stock, valued at $27,842,088. The trade was a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at $10,725,370.39. The trade was a 18.42% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 1,349,019 shares of company stock worth $123,105,721. Corporate insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. First Financial Corp IN increased its position 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 valued at $25,000 after acquiring an additional 243 shares during the last quarter. DiNuzzo Private Wealth Inc. boosted its position in Netflix by 885.2% during the fourth quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. grew its stake in Netflix by 13,400.0% in the fourth 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 bought a new position in Netflix in the third quarter valued at approximately $25,000. Finally, Cornerstone Financial Management LLC acquired a new position in shares of Netflix during the 4th quarter worth approximately $26,000. 80.93% of the stock is owned by 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.