Netflix (NASDAQ:NFLX) Stock Price Down 2.7% on Insider Selling

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 2.7% on Tuesday following insider selling activity. The company traded as low as $1,194.10 and last traded at $1,191.92. Approximately 1,229,633 shares changed hands during mid-day trading, a decline of 67% from the average daily volume of 3,743,091 shares. The stock had previously closed at $1,224.46.

Specifically, Director Jay C. Hoag sold 31,750 shares of the stock in a transaction on Thursday, June 5th. The shares were sold at an average price of $1,252.35, for a total transaction of $39,762,112.50. Following the completion of the transaction, the director now owns 63,040 shares in the company, valued at approximately $78,948,144. This represents a 33.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Ann Mather sold 1,090 shares of the stock in a transaction on Thursday, June 5th. The stock was sold at an average price of $1,250.00, for a total transaction of $1,362,500.00. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

A number of analysts have commented on NFLX shares. Bank of America increased their price target on shares of Netflix from $1,175.00 to $1,490.00 and gave the company a “buy” rating in a research note on Friday, May 30th. Citigroup reiterated a “neutral” rating and issued a $1,250.00 target price (up from $1,020.00) on shares of Netflix in a research note on Thursday, May 29th. Wolfe Research set a $1,340.00 target price on shares of Netflix and gave the company an “outperform” rating in a research note on Friday, May 16th. Canaccord Genuity Group raised their target price on shares of Netflix from $1,200.00 to $1,380.00 and gave the company a “buy” rating in a research note on Friday, May 16th. Finally, Phillip Securities upgraded shares of Netflix from a “moderate sell” rating to a “hold” rating in a research note on Monday, April 21st. Eleven research analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $1,149.91.

Netflix Price Performance

The company’s fifty day moving average price is $1,099.31 and its 200 day moving average price is $992.93. The company has a market capitalization of $512.23 billion, a P/E ratio of 60.70, a PEG ratio of 2.12 and a beta of 1.59. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.56.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, April 17th. The Internet television network reported $6.61 EPS for the quarter, topping the consensus estimate of $5.74 by $0.87. Netflix had a net margin of 22.34% and a return on equity of 38.32%. The company had revenue of $10.54 billion for the quarter, compared to analysts’ expectations of $10.51 billion. During the same period last year, the firm earned $8.28 earnings per share. As a group, sell-side analysts forecast that Netflix, Inc. will post 24.58 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. Halbert Hargrove Global Advisors LLC increased its stake in Netflix by 100.0% in the first quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network’s stock valued at $25,000 after acquiring an additional 13 shares during the last quarter. Brown Shipley& Co Ltd bought a new position in Netflix in the fourth quarter valued at approximately $27,000. Pathway Financial Advisers LLC increased its stake in Netflix by 82.4% in the fourth quarter. Pathway Financial Advisers LLC now owns 31 shares of the Internet television network’s stock valued at $27,000 after acquiring an additional 14 shares during the last quarter. Transce3nd LLC bought a new position in Netflix in the fourth quarter valued at approximately $32,000. Finally, Flaharty Asset Management LLC bought a new position in Netflix in the first quarter valued at approximately $37,000. 80.93% of the stock is owned by 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.