Netflix (NASDAQ:NFLX) Shares Down 3.2% – What’s Next?

Shares of Netflix, Inc. (NASDAQ:NFLX) were down 3.2% during trading on Tuesday . The company traded as low as $919.02 and last traded at $919.70. Approximately 1,752,065 shares changed hands during mid-day trading, a decline of 49% from the average daily volume of 3,419,125 shares. The stock had previously closed at $950.02.

Analyst Ratings Changes

A number of research firms have weighed in on NFLX. Piper Sandler reiterated an “overweight” rating and set a $1,100.00 price target (up previously from $950.00) on shares of Netflix in a research note on Wednesday, January 22nd. Benchmark raised shares of Netflix from a “sell” rating to a “hold” rating in a research note on Wednesday, January 22nd. Barclays upgraded shares of Netflix from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $715.00 to $900.00 in a research note on Wednesday, January 22nd. JPMorgan Chase & Co. upped their price objective on Netflix from $1,000.00 to $1,150.00 and gave the company an “overweight” rating in a research note on Wednesday, January 22nd. Finally, Loop Capital increased their target price on Netflix from $925.00 to $1,000.00 and gave the stock a “hold” rating in a report on Wednesday, January 22nd. Ten research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Netflix presently has an average rating of “Moderate Buy” and a consensus price target of $1,016.78.

Netflix Stock Performance

The stock’s 50 day moving average is $955.11 and its two-hundred day moving average is $854.07. The firm has a market capitalization of $410.43 billion, a P/E ratio of 48.39, a P/E/G ratio of 2.12 and a beta of 1.38. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.22 and a quick ratio of 1.22.

Netflix (NASDAQ:NFLX) last released its earnings results on Tuesday, January 21st. The Internet television network reported $4.27 EPS for the quarter, topping analysts’ consensus estimates of $4.20 by $0.07. The firm had revenue of $10.25 billion during the quarter, compared to analyst estimates of $10.14 billion. Netflix had a net margin of 22.34% and a return on equity of 38.32%. The business’s quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $2.11 EPS. As a group, equities analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In related news, CEO Gregory K. Peters sold 102,228 shares of the stock in a transaction that occurred on Thursday, January 30th. The shares were sold at an average price of $980.74, for a total value of $100,259,088.72. Following the sale, the chief executive officer now directly owns 12,950 shares in the company, valued at $12,700,583. This trade represents a 88.76 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Spencer Adam Neumann sold 685 shares of the business’s stock in a transaction that occurred on Thursday, February 6th. The shares were sold at an average price of $1,009.57, for a total transaction of $691,555.45. Following the transaction, the chief financial officer now owns 3,691 shares of the company’s stock, valued at approximately $3,726,322.87. This represents a 15.65 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 288,103 shares of company stock worth $279,142,041. 1.76% of the stock is owned by insiders.

Institutional Trading of Netflix

Several hedge funds have recently added to or reduced their stakes in NFLX. West Michigan Advisors LLC lifted its holdings in shares of Netflix by 1.3% during the 4th quarter. West Michigan Advisors LLC now owns 776 shares of the Internet television network’s stock valued at $692,000 after purchasing an additional 10 shares in the last quarter. Warwick Investment Management Inc. raised its holdings in Netflix by 3.5% during the 4th quarter. Warwick Investment Management Inc. now owns 298 shares of the Internet television network’s stock worth $266,000 after buying an additional 10 shares during the period. MRP Capital Investments LLC raised its holdings in Netflix by 1.0% during the 4th quarter. MRP Capital Investments LLC now owns 1,052 shares of the Internet television network’s stock worth $938,000 after buying an additional 10 shares during the period. Bedell Frazier Investment Counselling LLC lifted its stake in Netflix by 2.2% in the fourth quarter. Bedell Frazier Investment Counselling LLC now owns 462 shares of the Internet television network’s stock valued at $412,000 after buying an additional 10 shares in the last quarter. Finally, Mission Creek Capital Partners Inc. boosted its holdings in shares of Netflix by 0.3% in the fourth quarter. Mission Creek Capital Partners Inc. now owns 3,826 shares of the Internet television network’s stock valued at $3,410,000 after buying an additional 10 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

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.