Netflix (NASDAQ:NFLX) Shares Gap Down Following Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares gapped down prior to trading on Friday after Canaccord Genuity Group downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $610.56, but opened at $567.88. Canaccord Genuity Group now has a $585.00 price target on the stock, down from their previous price target of $720.00. Netflix shares last traded at $569.40, with a volume of 4,111,592 shares trading hands.

A number of other analysts have also recently issued reports on NFLX. Macquarie raised their target price on shares of Netflix from $595.00 to $685.00 and gave the stock an “outperform” rating in a research note on Tuesday. Bank of America raised their target price on shares of Netflix from $585.00 to $650.00 and gave the stock a “buy” rating in a research note on Wednesday, January 24th. Wells Fargo & Company raised their target price on shares of Netflix from $650.00 to $726.00 and gave the stock an “overweight” rating in a research note on Friday. StockNews.com upgraded shares of Netflix from a “hold” rating to a “buy” rating in a research note on Monday, February 26th. Finally, JPMorgan Chase & Co. raised their target price on shares of Netflix from $610.00 to $650.00 and gave the stock an “overweight” rating in a research note on Monday, April 8th. One analyst has rated the stock with a sell rating, twelve have given a hold rating and twenty-two have issued a buy rating to the stock. Based on data from MarketBeat.com, Netflix presently has an average rating of “Moderate Buy” and a consensus target price of $630.58.

Insiders Place Their Bets

In other Netflix news, Chairman Reed Hastings sold 20,566 shares of the business’s stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $610.42, for a total transaction of $12,553,897.72. Following the sale, the chairman now directly owns 28 shares of the company’s stock, valued at approximately $17,091.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Netflix news, Chairman Reed Hastings sold 20,566 shares of the business’s stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $610.42, for a total transaction of $12,553,897.72. Following the sale, the chairman now directly owns 28 shares of the company’s stock, valued at approximately $17,091.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider David A. Hyman sold 47,574 shares of the company’s stock in a transaction on Wednesday, January 24th. The shares were sold at an average price of $537.92, for a total transaction of $25,591,006.08. Following the completion of the sale, the insider now directly owns 31,610 shares in the company, valued at $17,003,651.20. The disclosure for this sale can be found here. Insiders have sold 268,335 shares of company stock valued at $151,619,811 in the last ninety days. 2.45% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Netflix

Institutional investors have recently modified their holdings of the company. Indiana Trust & Investment Management CO boosted its stake in shares of Netflix by 112.0% in the 1st quarter. Indiana Trust & Investment Management CO now owns 53 shares of the Internet television network’s stock valued at $32,000 after purchasing an additional 28 shares during the last quarter. VitalStone Financial LLC lifted its position in shares of Netflix by 933.3% during the 4th quarter. VitalStone Financial LLC now owns 62 shares of the Internet television network’s stock valued at $30,000 after acquiring an additional 56 shares during the period. Scarborough Advisors LLC acquired a new position in shares of Netflix during the 4th quarter valued at $32,000. Aspect Partners LLC acquired a new position in shares of Netflix during the 4th quarter valued at $32,000. Finally, Authentikos Wealth Advisory LLC acquired a new position in shares of Netflix during the 3rd quarter valued at $25,000. 80.93% of the stock is owned by institutional investors.

Netflix Stock Down 9.1 %

The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.69. The stock’s 50-day moving average is $605.65 and its 200-day moving average is $513.07. The company has a market cap of $240.20 billion, a price-to-earnings ratio of 46.21, a P/E/G ratio of 1.65 and a beta of 1.22.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, April 18th. The Internet television network reported $5.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.51 by $0.77. Netflix had a net margin of 16.04% and a return on equity of 24.76%. The company had revenue of $9.37 billion for the quarter, compared to the consensus estimate of $9.28 billion. During the same quarter in the previous year, the company earned $2.88 EPS. Netflix’s quarterly revenue was up 14.8% compared to the same quarter last year. On average, analysts anticipate that Netflix, Inc. will post 17.05 earnings per share for the current fiscal year.

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.