Netflix (NASDAQ:NFLX) Shares Down 3% – Time to Sell?

Netflix, Inc. (NASDAQ:NFLX)’s stock price traded down 3% during trading on Tuesday . The company traded as low as $77.46 and last traded at $77.90. Approximately 27,477,412 shares were traded during mid-day trading, a decline of 36% from the average session volume of 42,834,785 shares. The stock had previously closed at $80.32.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Evercore ISI raised its Netflix price target to $110 from $100 and maintained an Outperform rating, citing stronger subscriber trends in the United States and Japan. The analyst also identified live events and short-form video as potential additional engagement and growth drivers. Netflix stock rises as Evercore raises price target to $110
• Positive Sentiment: Investor interest remains supportive: Pershing Square, led by Bill Ackman, reportedly rebuilt its Netflix position after the stock’s large drawdown, while 14 of 22 prominent investors recently increased their stakes. 22 Prominent Investors Hold Netflix Stock
• Positive Sentiment: Netflix helped form the Streaming Access and Choice Alliance with Amazon and YouTube, giving the company a platform to advocate for consumer access and choice as competition over sports and live-content rights intensifies. Amazon, Netflix, YouTube Form Coalition
• Neutral Sentiment: Netflix will release third-quarter 2026 results on October 20, giving investors a forthcoming catalyst for assessing subscriber momentum, advertising growth, margins, and the impact of recent price increases. Netflix to Announce Third Quarter 2026 Financial Results
• Negative Sentiment: Broader macroeconomic friction weighed on streaming stocks Tuesday, pressuring Netflix despite company-specific bullish research. Netflix Stock Edges Lower Tuesday
• Negative Sentiment: Netflix remains among the stocks receiving recent analyst downgrades, highlighting concerns about valuation and the sustainability of growth even though the overall analyst consensus remains bullish. A lawsuit alleging secret tracking of families and children adds potential legal and reputational risk.

Analyst Ratings Changes

NFLX has been the subject of a number of analyst reports. Sanford C. Bernstein set a $95.00 target price on shares of Netflix and gave the stock an “outperform” rating in a research note on Friday, July 17th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Netflix in a research report on Friday, August 14th. China Renaissance decreased their price target on Netflix from $100.00 to $80.00 and set a “hold” rating for the company in a report on Friday, July 17th. Itau BBA Securities decreased their price target on Netflix from $151.40 to $96.00 and set an “outperform” rating for the company in a report on Wednesday, August 5th. Finally, Pivotal Research lowered their price objective on Netflix from $96.00 to $70.00 and set a “hold” rating for the company in a research report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, sixteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $96.53.

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 $324.37 billion, a price-to-earnings ratio of 24.52, a PEG ratio of 1.09 and a beta of 1.53. The business’s fifty day simple moving average is $75.80 and its 200 day simple moving average is $84.45.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating 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 net margin of 28.22% and a return on equity of 40.02%. The business’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.72 earnings per share. On average, research analysts forecast that Netflix, Inc. will post 3.59 EPS for the current year.

Insiders Place Their Bets

In other Netflix news, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares of the company’s stock, valued at approximately $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of the business’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 sale, the director owned 2,460 shares of the company’s stock, valued at approximately $185,164.20. This represents a 22.64% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 215,035 shares of company stock worth $15,922,139 over the last three months. Insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

Large investors have recently modified their holdings of the company. American Capital Advisory LLC boosted its stake in Netflix by 0.8% during the 1st quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock valued at $1,345,000 after purchasing an additional 109 shares during the last quarter. CWS Financial Advisors LLC raised its stake in shares of Netflix by 3.2% in the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock worth $347,000 after purchasing an additional 112 shares during the last quarter. Warner Group LLC raised its stake in shares of Netflix by 2.2% in the first quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock worth $503,000 after purchasing an additional 114 shares during the last quarter. Financial Avengers Inc. lifted its holdings in shares of Netflix by 9.8% in the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after purchasing an additional 115 shares in the last quarter. Finally, PAX Financial Group LLC lifted its holdings in shares of Netflix by 2.5% in the first quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock valued at $466,000 after purchasing an additional 116 shares in the last quarter. 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 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.