Netflix (NASDAQ:NFLX) Stock Falls 2.2% Following Insider Selling

Shares of Netflix, Inc. (NASDAQ:NFLX) were down 2.2% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $62.48 and last traded at $62.52. Approximately 48,322,781 shares changed hands during mid-day trading, an increase of 13% from the average daily volume of 42,738,805 shares. The stock had previously closed at $63.90.

Specifically, Director Bradford Smith sold 17,980 shares of the company’s stock in a transaction on Monday, October 26th. The shares were sold at an average price of $64.03, for a total value of $1,151,259.40. Following the completion of the sale, the director owned 79,690 shares of the company’s stock, valued at approximately $5,102,550.70. This represents a 18.41% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the stock. Argus set a $95.00 price objective on shares of Netflix and gave the company a “buy” rating in a research note on Thursday, October 22nd. Citizens Jmp restated a “market perform” rating on shares of Netflix in a report on Wednesday, October 21st. Jefferies Financial Group set a $85.00 price target on Netflix and gave the company a “buy” rating in a report on Thursday, October 15th. China Renaissance lowered their price objective on Netflix from $100.00 to $80.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. Finally, Moffett Nathanson reaffirmed a “buy” rating and set a $90.00 price target on shares of Netflix in a report on Wednesday, October 21st. Two analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $89.59.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q3 results exceeded expectations. Netflix beat consensus earnings estimates, reporting $0.87 per share versus $0.82 expected. Revenue of $12.87 billion was in line with forecasts and increased 11.9% year over year, while margins reportedly reached a record level. Netflix Just Posted a Record Margin
• Positive Sentiment: Profitability remains a strength. Analysts and investors note that Netflix’s margins have widened and that its subscription business continues to generate substantial economics, potentially providing support if management can improve engagement and sustain international growth. Netflix: Not Winning On Attention, Winning On Economics
• Neutral Sentiment: Investors are watching international revenue and the advertising business. International markets remain important to Netflix’s growth outlook, while the company’s advertising strategy could become a larger contributor over time. However, recent commentary indicates the 2026 advertising-revenue outlook was reduced to approximately $2 billion. International Revenue Trends
• Negative Sentiment: Forward guidance disappointed. Netflix’s fourth-quarter revenue outlook came in below Wall Street expectations, implying roughly 13% annual revenue growth. The slower pace overshadowed the Q3 earnings beat and led UBS, Piper Sandler and Rosenblatt to reduce price targets. Netflix Is Making Big Changes
• Negative Sentiment: Engagement and market-share concerns are driving the selling. Reports that viewers are watching less, particularly in the mature U.S. market, have raised concerns about competition from short-form video, artificial intelligence and rival streaming services. Analysts also point to Netflix losing share of total watch hours despite strong financial results. Why Wall Street Is Worried
• Negative Sentiment: Analyst sentiment has weakened. Needham downgraded Netflix to Hold and Wolfe Research lowered its rating to Peer Perform from Outperform. The downgrades reinforce concerns that the stock’s previous valuation assumed stronger growth than the company is currently delivering. Needham Downgrades Netflix

Netflix Stock Down 2.2%

The business’s 50 day simple moving average is $74.27 and its 200 day simple moving average is $82.27. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. The firm has a market capitalization of $256.73 billion, a PE ratio of 18.07, a PEG ratio of 0.96 and a beta of 1.62.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.82 by $0.05. The firm had revenue of $12.87 billion during the quarter, compared to the consensus estimate of $12.87 billion. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The firm’s revenue for the quarter was up 11.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.59 EPS. On average, equities research analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current year.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently added to or reduced their stakes in NFLX. Great Lakes Retirement Inc. boosted its position in Netflix by 4.4% in the 3rd quarter. Great Lakes Retirement Inc. now owns 165,873 shares of the Internet television network’s stock valued at $11,541,000 after buying an additional 6,964 shares during the period. Generali Asset Management SPA SGR raised its stake in shares of Netflix by 4.5% during the third quarter. Generali Asset Management SPA SGR now owns 210,574 shares of the Internet television network’s stock valued at $14,652,000 after acquiring an additional 9,111 shares in the last quarter. IMG Wealth Management Inc. boosted its holdings in shares of Netflix by 14.1% in the third quarter. IMG Wealth Management Inc. now owns 3,243 shares of the Internet television network’s stock valued at $226,000 after purchasing an additional 401 shares during the period. Jacobsen Capital Management boosted its holdings in shares of Netflix by 14.4% in the third quarter. Jacobsen Capital Management now owns 8,446 shares of the Internet television network’s stock valued at $588,000 after purchasing an additional 1,063 shares during the period. Finally, Balance Wealth Partners LLC purchased a new stake in shares of Netflix in the third quarter valued at approximately $96,000. 80.93% of the stock is currently owned by institutional investors.

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.