Netflix (NASDAQ:NFLX) Shares Down 3.4% After Insider Selling

Netflix, Inc. (NASDAQ:NFLX) fell 3.4% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $87.57 and last traded at $87.89. 51,531,325 shares changed hands during mid-day trading, an increase of 9% from the average session volume of 47,166,129 shares. The stock had previously closed at $91.02.

Specifically, Director Reed Hastings sold 407,550 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $93.13, for a total value of $37,955,131.50. Following the completion of the sale, the director owned 3,940 shares in the company, valued at $366,932.20. This represents a 99.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on NFLX. Wolfe Research reiterated an “outperform” rating and issued a $107.00 target price on shares of Netflix in a research report on Friday, April 17th. Huber Research upgraded shares of Netflix from a “strong sell” rating to a “strong-buy” rating in a research report on Friday, February 27th. Robert W. Baird cut their target price on shares of Netflix from $150.00 to $120.00 and set an “outperform” rating for the company in a research report on Friday, January 23rd. Citizens Jmp reiterated a “market perform” rating on shares of Netflix in a research report on Wednesday, April 15th. Finally, Morgan Stanley restated an “overweight” rating on shares of Netflix in a research note on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and fifteen have given a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $114.82.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix is adding buyback capacity and is listed among consumer discretionary names “buying their own dips,” which can support shares by reducing float and signaling management confidence. Netflix, Pulte, and Mobileye Are Buying Their Own Dips—Should You?
• Positive Sentiment: Content momentum: Netflix’s follow-up to a big hit scored a 92% Rotten Tomatoes rating, reinforcing the company’s ability to generate high-engagement, franchise-level hits that support subscriber growth and engagement. Netflix’s ‘Adolescence’ Follow-Up Show Has A 92% Rotten Tomatoes Score
• Neutral Sentiment: Big institutional positions remain — MarketBeat notes large quarter‑end increases by Vanguard, State Street and others, meaning institutional flows can magnify moves but also supply a stable long-term holder base. Netflix institutional trading summary
• Neutral Sentiment: Analysis and post‑earnings debate persist — some commentators argue Netflix was “unfairly punished” after results in the broader market context, suggesting part of today’s move may be sentiment-driven rather than fundamental. Microsoft and 11 More Stocks That Were Unfairly Punished After Earnings
• Negative Sentiment: Insider selling: Director Reed Hastings sold 407,550 shares (about $38M) under a pre‑arranged 10b5‑1 plan — large insider sales can spook short‑term investors even when pre‑arranged. Reed Hastings Sells 407,550 Shares of Netflix (NASDAQ:NFLX) Stock
• Negative Sentiment: Analyst/technical pressure: Benzinga highlights a sub‑$100 resistance level and notes a $114 price target consensus; some firms have trimmed targets recently, contributing to selling pressure. What’s Going On With Netflix Stock Tuesday?

Netflix Stock Down 3.4%

The business’s 50 day moving average is $94.81 and its 200-day moving average is $96.77. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.41 and a current ratio of 1.41. The firm has a market capitalization of $370.09 billion, a price-to-earnings ratio of 28.39, a price-to-earnings-growth ratio of 1.18 and a beta of 1.55.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. During the same period last year, the business posted $6.61 EPS. Netflix’s revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. Equities analysts anticipate that Netflix, Inc. will post 3.56 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of NFLX. Vanguard Group Inc. raised its stake in shares of Netflix by 0.4% in the third quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock worth $46,183,983,000 after acquiring an additional 142,238 shares during the last quarter. Checchi Capital Advisers LLC raised its stake in shares of Netflix by 875.7% in the fourth quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock worth $2,920,000 after acquiring an additional 27,951 shares during the last quarter. Contravisory Investment Management Inc. raised its stake in shares of Netflix by 837.2% in the fourth quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock worth $10,443,000 after acquiring an additional 99,496 shares during the last quarter. Crew Capital Management Ltd raised its stake in shares of Netflix by 1,021.9% in the fourth quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock worth $847,000 after acquiring an additional 8,226 shares during the last quarter. Finally, BNC Wealth Management LLC grew its position in shares of Netflix by 991.3% during the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock worth $3,866,000 after buying an additional 37,451 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.