Netflix (NASDAQ:NFLX) Trading Down 3.9% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX)’s stock price traded down 3.9% during trading on Thursday . The company traded as low as $105.39 and last traded at $105.67. 36,621,378 shares traded hands during mid-day trading, a decline of 8% from the average session volume of 39,987,402 shares. The stock had previously closed at $110.00.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on NFLX shares. Moffett Nathanson reaffirmed a “buy” rating on shares of Netflix in a report on Wednesday, November 12th. President Capital raised Netflix from a “neutral” rating to a “buy” rating and set a $130.00 price target for the company in a report on Monday, November 3rd. Jefferies Financial Group restated a “buy” rating and issued a $150.00 price target on shares of Netflix in a research note on Wednesday, October 22nd. Citigroup reiterated a “neutral” rating and issued a $129.50 price objective (up previously from $128.00) on shares of Netflix in a research report on Friday, October 3rd. Finally, The Goldman Sachs Group decreased their target price on shares of Netflix from $131.00 to $130.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 30th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Netflix has an average rating of “Moderate Buy” and an average target price of $133.93.

Netflix Stock Performance

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company has a market capitalization of $447.76 billion, a PE ratio of 4.41, a P/E/G ratio of 1.91 and a beta of 1.58. The stock has a 50-day simple moving average of $116.57 and a 200 day simple moving average of $119.93.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.69 by $5.18. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business had revenue of $11.32 billion during the quarter, compared to the consensus estimate of $11.52 billion. During the same quarter in the previous year, the company posted $0.54 EPS. The business’s revenue was up 17.2% on a year-over-year basis. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS. Equities analysts anticipate that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Activity at Netflix

In related news, CEO Theodore A. Sarandos sold 20,270 shares of Netflix stock in a transaction that occurred on Tuesday, November 4th. The stock was sold at an average price of $109.21, for a total transaction of $2,213,646.16. Following the completion of the transaction, the chief executive officer directly owned 151,680 shares in the company, valued at $16,564,669.44. The trade was a 11.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider David A. Hyman sold 314,620 shares of the company’s stock in a transaction that occurred on Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total value of $34,603,166.08. Following the completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $34,765,942.40. The trade was a 49.88% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,529,960 shares of company stock valued at $175,427,521 in the last quarter. 1.37% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Several institutional investors and hedge funds have recently made changes to their positions in NFLX. Old North State Trust LLC increased its position in Netflix by 9.3% during the 3rd quarter. Old North State Trust LLC now owns 1,120 shares of the Internet television network’s stock worth $1,343,000 after purchasing an additional 95 shares in the last quarter. Portus Wealth Advisors LLC purchased a new position in Netflix in the 3rd quarter valued at about $895,000. Caerus Investment Advisors LLC boosted its stake in shares of Netflix by 65.1% during the 3rd quarter. Caerus Investment Advisors LLC now owns 464 shares of the Internet television network’s stock worth $556,000 after purchasing an additional 183 shares during the last quarter. Captrust Financial Advisors grew its holdings in shares of Netflix by 3.2% during the third quarter. Captrust Financial Advisors now owns 110,691 shares of the Internet television network’s stock worth $132,709,000 after buying an additional 3,426 shares in the last quarter. Finally, Coldstream Capital Management Inc. grew its holdings in shares of Netflix by 7.2% during the third quarter. Coldstream Capital Management Inc. now owns 13,835 shares of the Internet television network’s stock worth $16,587,000 after buying an additional 924 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

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.