Netflix (NASDAQ:NFLX) Shares Down 0.7% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX) dropped 0.7% during mid-day trading on Tuesday . The stock traded as low as $869.11 and last traded at $875.42. Approximately 760,117 shares traded hands during trading, a decline of 67% from the average daily volume of 2,326,388 shares. The stock had previously closed at $881.79.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Benchmark upped their target price on shares of Netflix from $555.00 to $720.00 and gave the stock a “sell” rating in a research report on Friday. Wells Fargo & Company lifted their price objective on shares of Netflix from $758.00 to $797.00 and gave the company an “overweight” rating in a research report on Friday, October 18th. Citigroup boosted their price target on shares of Netflix from $725.00 to $920.00 and gave the stock a “neutral” rating in a research report on Thursday, December 5th. Needham & Company LLC upped their price target on shares of Netflix from $700.00 to $800.00 and gave the company a “buy” rating in a research report on Friday, October 18th. Finally, JPMorgan Chase & Co. increased their price objective on Netflix from $850.00 to $1,010.00 and gave the stock an “overweight” rating in a report on Wednesday, December 11th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and twenty-four have assigned a buy rating to the company’s stock. According to MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $821.27.

Netflix Price Performance

The firm has a market capitalization of $376.15 billion, a PE ratio of 49.80, a P/E/G ratio of 1.77 and a beta of 1.27. The company has a 50-day moving average price of $869.23 and a 200-day moving average price of $748.42. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.13 and a quick ratio of 1.13.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, October 17th. The Internet television network reported $5.40 earnings per share for the quarter, beating analysts’ consensus estimates of $5.09 by $0.31. The firm had revenue of $9.82 billion for the quarter, compared to analysts’ expectations of $9.77 billion. Netflix had a return on equity of 35.86% and a net margin of 20.70%. Sell-side analysts forecast that Netflix, Inc. will post 19.78 EPS for the current year.

Insider Activity

In other news, Chairman Reed Hastings sold 48,363 shares of the company’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $896.60, for a total transaction of $43,362,265.80. Following the sale, the chairman now owns 114 shares in the company, valued at $102,212.40. This represents a 99.76 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Leslie J. Kilgore sold 383 shares of the firm’s stock in a transaction on Thursday, October 10th. The stock was sold at an average price of $730.00, for a total value of $279,590.00. Following the transaction, the director now owns 35,262 shares in the company, valued at approximately $25,741,260. This trade represents a 1.07 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 150,761 shares of company stock worth $125,713,484 in the last 90 days. Company insiders own 1.76% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. DigitalBridge Group Inc. boosted its position in Netflix by 35.5% during the 2nd quarter. DigitalBridge Group Inc. now owns 36,063 shares of the Internet television network’s stock valued at $24,338,000 after acquiring an additional 9,451 shares in the last quarter. Nordea Investment Management AB grew its position in shares of Netflix by 22.7% in the 4th quarter. Nordea Investment Management AB now owns 848,150 shares of the Internet television network’s stock worth $760,918,000 after buying an additional 156,958 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in shares of Netflix by 1.2% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,579,404 shares of the Internet television network’s stock worth $1,829,494,000 after acquiring an additional 29,726 shares in the last quarter. Natixis Advisors LLC lifted its position in Netflix by 2.0% during the third quarter. Natixis Advisors LLC now owns 612,458 shares of the Internet television network’s stock valued at $434,398,000 after acquiring an additional 11,921 shares during the last quarter. Finally, M&T Bank Corp lifted its stake in shares of Netflix by 4.2% during the third quarter. M&T Bank Corp now owns 41,946 shares of the Internet television network’s stock worth $29,751,000 after buying an additional 1,684 shares during the period. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

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.