Netflix (NASDAQ:NFLX) Shares Down 3.2% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX)’s stock price was down 3.2% during mid-day trading on Tuesday . The stock traded as low as $919.02 and last traded at $919.70. Approximately 1,752,065 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 3,419,125 shares. The stock had previously closed at $950.02.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on NFLX shares. Citigroup boosted their price objective on Netflix from $725.00 to $920.00 and gave the stock a “neutral” rating in a research report on Thursday, December 5th. Morgan Stanley increased their price objective on Netflix from $1,050.00 to $1,150.00 and gave the company an “overweight” rating in a research report on Wednesday, January 22nd. Oppenheimer boosted their target price on shares of Netflix from $1,040.00 to $1,150.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 22nd. Deutsche Bank Aktiengesellschaft increased their price target on shares of Netflix from $650.00 to $875.00 and gave the company a “hold” rating in a report on Wednesday, January 22nd. Finally, Needham & Company LLC boosted their price objective on shares of Netflix from $800.00 to $1,150.00 and gave the stock a “buy” rating in a report on Wednesday, January 22nd. Ten equities research analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, Netflix presently has an average rating of “Moderate Buy” and a consensus price target of $1,016.78.

Netflix Stock Performance

The stock has a market cap of $397.72 billion, a price-to-earnings ratio of 46.87, a P/E/G ratio of 2.12 and a beta of 1.38. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.56. The firm has a fifty day simple moving average of $952.40 and a 200-day simple moving average of $851.72.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.20 by $0.07. The business had revenue of $10.25 billion for the quarter, compared to analyst estimates of $10.14 billion. Netflix had a return on equity of 38.32% and a net margin of 22.34%. The firm’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.11 earnings per share. Analysts forecast that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Transactions at Netflix

In other news, Director Ann Mather sold 2,682 shares of the firm’s stock in a transaction on Monday, February 3rd. The stock was sold at an average price of $973.00, for a total value of $2,609,586.00. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Chairman Reed Hastings sold 35,868 shares of the company’s stock in a transaction dated Thursday, January 2nd. The shares were sold at an average price of $888.08, for a total value of $31,853,653.44. Following the completion of the sale, the chairman now owns 114 shares of the company’s stock, valued at $101,241.12. This represents a 99.68 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 288,103 shares of company stock worth $279,142,041 in the last quarter. 1.76% of the stock is owned by company insiders.

Institutional Trading of Netflix

A number of hedge funds have recently modified their holdings of the company. Swedbank AB increased its position in shares of Netflix by 1.8% in the 3rd quarter. Swedbank AB now owns 465,208 shares of the Internet television network’s stock valued at $329,958,000 after buying an additional 8,024 shares in the last quarter. Principal Financial Group Inc. grew its stake in Netflix by 13.3% in the third quarter. Principal Financial Group Inc. now owns 1,692,563 shares of the Internet television network’s stock valued at $1,200,485,000 after acquiring an additional 198,148 shares during the period. Thrivent Financial for Lutherans increased its holdings in shares of Netflix by 6.6% in the third quarter. Thrivent Financial for Lutherans now owns 70,276 shares of the Internet television network’s stock worth $49,844,000 after acquiring an additional 4,348 shares in the last quarter. Aljian Capital Management LLC increased its holdings in shares of Netflix by 6.2% in the third quarter. Aljian Capital Management LLC now owns 8,347 shares of the Internet television network’s stock worth $5,920,000 after acquiring an additional 489 shares in the last quarter. Finally, MAI Capital Management raised its position in shares of Netflix by 5.6% during the third quarter. MAI Capital Management now owns 60,265 shares of the Internet television network’s stock worth $42,744,000 after purchasing an additional 3,208 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.