Netflix (NASDAQ:NFLX) Trading Down 1.1% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX) shares dropped 1.1% during trading on Friday . The company traded as low as $79.28 and last traded at $80.34. Approximately 35,202,940 shares were traded during mid-day trading, a decline of 20% from the average daily volume of 44,144,395 shares. The stock had previously closed at $81.27.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jim Cramer said, “I want to buy Netflix,” which can reinforce the view that the recent weakness is a buying opportunity rather than a sign of deteriorating fundamentals. Jim Cramer Says “I Want to Buy Netflix”
• Positive Sentiment: Analyst-focused articles noted that Netflix has fallen sharply since its last earnings report, but Wall Street still sees meaningful upside, suggesting valuation support if growth reaccelerates. Here’s What Dragging Netflix (NFLX) Down
• Positive Sentiment: Omdia forecast Netflix could approach 400 million subscribers by 2031, reinforcing the company’s long-term leadership in global streaming and supporting the bull case for future revenue growth. Omdia: Netflix to Reach 400 Million Subscribers by 2031
• Positive Sentiment: Netflix’s new FIFA gaming partnership adds another engagement lever, which could help reduce churn and strengthen subscriber retention over time. FIFA Deal Tests How Netflix Uses Games To Deepen Subscriber Engagement
• Neutral Sentiment: Commentary that Netflix remains a “high-quality compounder back on sale” reflects a favorable long-term view, but it does not add a new near-term catalyst. Netflix: A High-Quality Compounder Back On Sale
• Neutral Sentiment: Multiple articles framed Netflix as one of the better long-term stock ideas in the media space, but these are mostly opinion pieces rather than hard business updates. Netflix (NFLX): 10 Best Stocks to Buy Now For Next 3 Months
• Negative Sentiment: A price-target cut due to a lack of fresh catalysts points to investor concern that Netflix may need a clearer near-term driver to regain momentum. Netflix Stock Gets Price-Target Cut On Lack Of Catalysts
• Negative Sentiment: The proposed Paramount Skydance/Warner Bros. Discovery deal could create a larger streaming competitor, which is one reason Netflix publicly opposed the transaction. DOJ Clears Paramount Skydance’s $110 Billion Warner Bros. Discovery Acquisition Without Conditions

Wall Street Analyst Weigh In

NFLX has been the subject of a number of research reports. Sanford C. Bernstein reiterated an “outperform” rating on shares of Netflix in a research note on Thursday, June 4th. Piper Sandler reiterated an “overweight” rating and issued a $115.00 price target (up from $103.00) on shares of Netflix in a research note on Friday, April 17th. Jefferies Financial Group dropped their price target on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research note on Wednesday. Citic Securities increased their price target on Netflix from $95.00 to $107.00 and gave the company a “hold” rating in a research note on Monday, April 27th. Finally, Arete Research upgraded Netflix from a “neutral” rating to a “buy” rating in a research note on Friday, February 27th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $114.39.

Netflix Stock Performance

The firm has a market capitalization of $338.30 billion, a P/E ratio of 25.95, a price-to-earnings-growth ratio of 1.02 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The company has a 50-day moving average of $90.93 and a 200-day moving average of $91.11.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.Netflix’s revenue for the quarter was up 16.2% compared to the same quarter last year. During the same period last year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 420,550 shares of the firm’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $95.49, for a total transaction of $40,158,319.50. Following the completion of the transaction, the director directly owned 3,940 shares of the company’s stock, valued at $376,230.60. This trade represents a 99.07% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 28,630 shares of the stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $98.00, for a total value of $2,805,740.00. Following the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at approximately $7,231,126. The trade was a 27.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,313,029 shares of company stock worth $120,315,776 over the last 90 days. Company insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in shares of Netflix by 0.4% during the third quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock valued at $46,183,983,000 after buying an additional 142,238 shares during the last quarter. Checchi Capital Advisers LLC grew its stake in shares of Netflix by 875.7% during the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock valued at $2,920,000 after buying an additional 27,951 shares during the last quarter. Contravisory Investment Management Inc. grew its stake in shares of Netflix by 837.2% during the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock valued at $10,443,000 after buying an additional 99,496 shares during the last quarter. BNC Wealth Management LLC grew its stake in shares of Netflix by 991.3% in the fourth quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock worth $3,866,000 after purchasing an additional 37,451 shares during the last quarter. Finally, Crew Capital Management Ltd grew its stake in shares of Netflix by 1,021.9% in the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock worth $847,000 after purchasing an additional 8,226 shares during the last quarter. 80.93% of the stock is owned by institutional investors.

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.