Netflix (NASDAQ:NFLX) Trading Down 4.3% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s share price dropped 4.3% during mid-day trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $1,010.00 to $1,000.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Netflix traded as low as $835.11 and last traded at $837.36. Approximately 1,584,633 shares changed hands during mid-day trading, a decline of 37% from the average daily volume of 2,516,036 shares. The stock had previously closed at $875.00.

Several other research firms have also issued reports on NFLX. UBS Group lifted their price target on shares of Netflix from $825.00 to $1,040.00 and gave the stock a “buy” rating in a report on Thursday, December 19th. Argus boosted their target price on Netflix from $840.00 to $1,040.00 and gave the stock a “buy” rating in a research note on Monday. Pivotal Research raised their price target on Netflix from $925.00 to $1,100.00 and gave the stock a “buy” rating in a report on Wednesday, November 20th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Netflix from $590.00 to $650.00 and gave the company a “hold” rating in a report on Wednesday, October 9th. Finally, Evercore ISI lifted their target price on shares of Netflix from $775.00 to $950.00 and gave the stock an “outperform” rating in a research note on Monday, December 2nd. Two analysts have rated the stock with a sell rating, ten have given a hold rating and twenty-four have issued a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $824.00.

Insider Transactions at Netflix

In related news, Director Richard N. Barton sold 6,364 shares of the business’s stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of $879.38, for a total transaction of $5,596,374.32. Following the transaction, the director now directly owns 246 shares in the company, valued at approximately $216,327.48. The trade was a 96.28 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Chairman Reed Hastings sold 35,868 shares of the stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $888.08, for a total transaction of $31,853,653.44. Following the completion of the sale, the chairman now owns 114 shares of the company’s stock, valued at approximately $101,241.12. The trade was a 99.68 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 156,742 shares of company stock valued at $131,030,268 over the last 90 days. Corporate insiders own 1.76% of the company’s stock.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently modified their holdings of NFLX. RPg Family Wealth Advisory LLC purchased a new position in Netflix during the third quarter worth about $25,000. E Fund Management Hong Kong Co. Ltd. increased its holdings in shares of Netflix by 700.0% during the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock worth $34,000 after buying an additional 42 shares during the last quarter. MidAtlantic Capital Management Inc. purchased a new stake in shares of Netflix during the 3rd quarter valued at approximately $37,000. FSA Wealth Management LLC acquired a new position in Netflix in the third quarter valued at approximately $38,000. Finally, First Personal Financial Services purchased a new position in Netflix in the third quarter worth approximately $40,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Price Performance

The stock has a 50-day simple moving average of $876.43 and a 200 day simple moving average of $751.52. The company has a market cap of $363.04 billion, a PE ratio of 48.06, a P/E/G ratio of 1.77 and a beta of 1.27. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.62.

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