Netflix (NASDAQ:NFLX) Shares Down 1.9% – Here’s Why

Shares of Netflix, Inc. (NASDAQ:NFLX) traded down 1.9% during mid-day trading on Wednesday . The stock traded as low as $76.31 and last traded at $76.41. Approximately 25,215,890 shares traded hands during trading, a decline of 41% from the average session volume of 42,730,984 shares. The stock had previously closed at $77.90.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Evercore reiterated a bullish stance, describing the recent selloff as a potential entry point for investors. Evercore says buy Netflix stock
• Positive Sentiment: Bill Ackman’s Pershing Square reportedly established a new Netflix position, suggesting confidence that the company’s current challenges are temporary and that its long-term growth prospects remain attractive. Bill Ackman’s Pershing Square took a new stake in Netflix
• Positive Sentiment: Commentary points to rapid growth in Netflix’s advertising business, ongoing share buybacks and the possibility of significant future value creation from newer revenue streams. The next $100 billion of Netflix’s value could come from here
• Neutral Sentiment: Netflix joined Amazon and YouTube in a coalition seeking technology-neutral streaming and live-sports regulations, potentially helping establish more favorable rules for online platforms. Netflix joins a new streaming policy coalition
• Neutral Sentiment: Studio Dragon signed a new global Netflix original-content production and supply agreement, supporting the company’s international content pipeline. Studio Dragon signs a new global Netflix original content deal
• Negative Sentiment: Wells Fargo downgraded NFLX to Underweight from Equal Weight and reduced its price target to $57 from $80. The firm cited “worrying” engagement trends and concerns that rising sports and live-event costs could pressure returns. The downgrade is the primary catalyst behind the stock’s decline and extends its recent losing streak. NFLX stock extends losing streak after Wells Fargo downgrade

Analysts Set New Price Targets

Several brokerages have recently commented on NFLX. Seaport Research Partners cut Netflix from a “buy” rating to a “neutral” rating in a report on Monday, July 20th. Wedbush reduced their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a report on Friday, July 17th. TD Cowen decreased their target price on shares of Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. Weiss Ratings lowered shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, June 26th. Finally, Rothschild & Co Redburn dropped their price target on shares of Netflix from $120.00 to $93.00 and set a “buy” rating for the company in a research report on Tuesday, July 21st. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $95.99.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a market capitalization of $313.59 billion, a price-to-earnings ratio of 23.70, a PEG ratio of 1.08 and a beta of 1.53. The stock has a 50 day moving average price of $75.85 and a two-hundred day moving average price of $84.21.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.72 EPS. As a group, analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Buying and Selling at Netflix

In other news, Director Richard Barton sold 720 shares of the firm’s stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the transaction, the director owned 2,460 shares of the company’s stock, valued at approximately $185,164.20. This trade represents a 22.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David Hyman sold 5,723 shares of Netflix stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at $23,027,885. This trade represents a 1.78% 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. In the last three months, insiders have sold 179,045 shares of company stock valued at $13,132,194. Corporate insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

Institutional investors have recently modified their holdings of the business. Anchor Investment Management LLC raised its stake in shares of Netflix by 1.9% in the second quarter. Anchor Investment Management LLC now owns 71,185 shares of the Internet television network’s stock valued at $5,083,000 after acquiring an additional 1,315 shares in the last quarter. Smith Chas P & Associates PA Cpas grew its stake in Netflix by 34.3% during the 2nd quarter. Smith Chas P & Associates PA Cpas now owns 3,718 shares of the Internet television network’s stock worth $265,000 after purchasing an additional 950 shares in the last quarter. Talon Private Wealth LLC acquired a new position in Netflix during the 2nd quarter worth $207,000. Marathon Wealth Advisors LLC increased its holdings in Netflix by 0.4% during the 2nd quarter. Marathon Wealth Advisors LLC now owns 44,269 shares of the Internet television network’s stock worth $3,161,000 after purchasing an additional 163 shares during the period. Finally, Van Hulzen Asset Management LLC increased its holdings in Netflix by 31.6% during the 2nd quarter. Van Hulzen Asset Management LLC now owns 17,175 shares of the Internet television network’s stock worth $1,226,000 after purchasing an additional 4,120 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.