Netflix (NASDAQ:NFLX) Trading Down 2.8% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX)’s stock price fell 2.8% during trading on Friday . The company traded as low as $72.51 and last traded at $73.37. Approximately 46,065,275 shares traded hands during mid-day trading, an increase of 2% from the average daily volume of 45,190,617 shares. The stock had previously closed at $75.47.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several articles argue the recent selloff may have gone too far, saying Netflix still has strong underlying earnings power and could be set up for a rebound heading into its July 16 results. Article Title
• Positive Sentiment: Supportive commentary from analysts and investors continues to highlight Netflix’s scale, profitability, and long-term growth potential, with some saying the stock’s weakness may be an opportunity before earnings. Article Title
• Neutral Sentiment: Netflix remains a heavily watched stock into its upcoming earnings report, with traders focused on subscriber trends, margins, and management guidance rather than any single headline. Article Title
• Neutral Sentiment: Netflix is also getting attention as a “trending stock” and a potential technical setup, but these pieces do not add a new fundamental catalyst. Article Title
• Negative Sentiment: Recent Wall Street Journal reporting that Netflix is exploring live TV channels and bundles because engagement is slipping is the main reason the stock is falling, as investors worry the platform may be losing viewer momentum. Article Title
• Negative Sentiment: Several market notes say Netflix is sliding because the company may need bigger product changes to revive engagement, reinforcing fears that growth is maturing more than expected. Article Title

Analysts Set New Price Targets

Several equities analysts recently issued reports on the stock. Bank of America restated a “buy” rating and issued a $125.00 target price on shares of Netflix in a report on Monday, May 18th. Guggenheim reaffirmed a “buy” rating and set a $120.00 target price on shares of Netflix in a research note on Friday, May 15th. Wedbush reissued an “outperform” rating and issued a $118.00 price target on shares of Netflix in a research note on Thursday, April 16th. Citizens Jmp reaffirmed a “market perform” rating on shares of Netflix in a research report on Wednesday, April 15th. Finally, Daiwa Securities Group boosted their target price on shares of Netflix from $97.00 to $102.00 and gave the company an “outperform” rating in a research report on Thursday, April 23rd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average price target of $113.65.

Netflix Price Performance

The business has a 50-day moving average price of $82.15 and a two-hundred day moving average price of $87.73. The company has a quick ratio of 1.41, a current ratio of 1.41 and a debt-to-equity ratio of 0.43. The company has a market capitalization of $308.95 billion, a price-to-earnings ratio of 23.70, a price-to-earnings-growth ratio of 0.96 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to the consensus estimate of $12.17 billion. During the same quarter last year, the firm 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. As a group, research analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current year.

Insiders Place Their Bets

In related news, Director Reed Hastings sold 407,550 shares of Netflix stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $93.13, for a total transaction of $37,955,131.50. Following the transaction, the director owned 3,940 shares of the company’s stock, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $6,563,353.65. This trade represents a 11.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 899,839 shares of company stock worth $80,141,661 in the last 90 days. Company insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

Institutional investors have recently made changes to their positions in the company. First Financial Corp IN lifted its position in shares of Netflix by 900.0% during the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after buying an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. increased its position in shares of Netflix by 885.2% during the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 239 shares during the last quarter. Turning Point Benefit Group Inc. raised its stake in shares of Netflix by 13,400.0% during the 4th quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after purchasing an additional 268 shares during the period. Imprint Wealth LLC purchased a new position in shares of Netflix in the 3rd quarter worth about $25,000. Finally, Cornerstone Financial Management LLC purchased a new stake in Netflix during the fourth quarter worth about $26,000. Institutional investors own 80.93% of the company’s stock.

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.