Netflix (NASDAQ:NFLX) Shares Down 3.2% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX) fell 3.2% during mid-day trading on Tuesday . The company traded as low as $71.00 and last traded at $71.40. 48,619,396 shares were traded during trading, an increase of 7% from the average daily volume of 45,361,922 shares. The stock had previously closed at $73.78.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is outperforming a weak tech market, with investors treating the stock as a defensive relative winner on a risk-off day. Netflix Stock Defies Tech Sell-Off Thursday: Whats Going On?
• Positive Sentiment: Buyers are stepping in because Netflix’s lower valuation, ongoing ad-tier growth, and recent selloff have made the shares look more attractive to value-oriented investors. NFLX Stock Climbs 3.95% as Valuation and Ad Growth Lift Demand Now
• Positive Sentiment: Bulls are also focusing on fundamentals: Netflix revenue is at record levels, the ad-supported tier is gaining traction, and management’s $25 billion buyback authorization signals confidence in the stock’s long-term value. Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care
• Neutral Sentiment: Several recent articles argue Netflix is approaching a potential turnaround zone after becoming deeply oversold technically, but this is still a thesis rather than a confirmed reversal.
• Neutral Sentiment: There is renewed speculation that a media deal involving NBCUniversal and Netflix could emerge, but the market appears to be treating that as a longer-shot catalyst rather than a current driver. Comcast Spinoff Could Rejuvenate Its Depressed Stock
• Negative Sentiment: Some commentary still warns the stock could be a bull trap, reflecting lingering skepticism after a large multi-month pullback and ongoing debate over whether the recovery is sustainable.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on NFLX shares. Raymond James Financial reissued a “market perform” rating on shares of Netflix in a research note on Thursday, May 14th. Pivotal Research set a $96.00 price target on Netflix and gave the company a “hold” rating in a report on Friday, April 17th. New Street Research lifted their price target on Netflix from $96.00 to $102.00 in a report on Friday, April 17th. Wedbush reissued an “outperform” rating and issued a $118.00 price target on shares of Netflix in a research report on Thursday, April 16th. Finally, The Goldman Sachs Group cut Netflix from a “neutral” rating to an “underweight” rating in a research note on Thursday, June 18th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Netflix currently has a consensus rating of “Moderate Buy” and a consensus target price of $114.26.

Netflix Price Performance

The stock’s 50-day moving average is $84.07 and its 200 day moving average is $88.49. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41. The company has a market cap of $327.37 billion, a PE ratio of 25.14, a PEG ratio of 0.91 and a beta of 1.52.

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, topping the consensus estimate of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. During the same period in the previous year, the company earned $6.61 earnings per share. The business’s revenue for the quarter was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, Director Reed Hastings sold 407,550 shares of the business’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the sale, the director owned 3,940 shares in the company, valued at approximately $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the transaction, the chief executive officer owned 284,804 shares in the company, valued at approximately $25,054,207.88. This trade represents a 8.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 899,839 shares of company stock worth $80,141,661 over the last ninety days. Corporate insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

Several large investors have recently bought and sold shares of NFLX. Vanguard Group Inc. raised its stake in Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after acquiring an additional 351,493,659 shares during the last quarter. State Street Corp increased its holdings in shares of Netflix by 927.6% in the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares during the period. Geode Capital Management LLC increased its holdings in shares of Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after purchasing an additional 89,558,684 shares during the period. Capital World Investors raised its stake in shares of Netflix by 859.1% in the fourth quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after purchasing an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its holdings in shares of Netflix by 685.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.