Netflix (NASDAQ:NFLX) Stock Price Down 1.9% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX)’s stock price was down 1.9% during mid-day trading on Tuesday . The stock traded as low as $75.92 and last traded at $76.77. Approximately 33,702,927 shares were traded during trading, a decline of 22% from the average session volume of 43,321,684 shares. The stock had previously closed at $78.25.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several investment articles argue that Netflix’s valuation has become attractive after a significant decline over the past year. Analyst price targets cited in recent coverage generally range from $95 to $125, with a median target of $115, implying substantial upside from recent levels. Netflix $100 or $60 article
• Positive Sentiment: Investors remain focused on Netflix’s profitable market position, content pipeline and potential second-half improvement. Coverage also highlights a reported NFL streaming partnership with EverPass Media and Pershing Square’s decision to buy Netflix shares, suggesting some institutional confidence in the company’s long-term prospects. Netflix recovery and partnerships article
• Positive Sentiment: Netflix’s latest U.K. price increases could support revenue and monetization. Historical coverage notes that previous price hikes did not prevent annual revenue growth, though customer retention and affordability remain important risks. Netflix U.K. price increases article
• Neutral Sentiment: Commentary rejects speculation that Netflix should be broken into separate streaming, advertising, studio, games or live-event businesses, arguing that the divisions reinforce one another and are more valuable together. Netflix breakup analysis
• Negative Sentiment: South African regulators are investigating consumer pricing for digital streaming services. The probe raises concerns about potential regulatory scrutiny, pricing restrictions or added compliance costs for Netflix and is the clearest fresh catalyst weighing on the stock. Netflix South Africa price probe
• Negative Sentiment: Recent coverage also points to a reported quarterly-estimate miss and weak forward guidance, while insiders have reportedly sold shares without recorded purchases during the past six months. These factors may reinforce concerns about near-term growth and management conviction. Netflix stock decline article

Analyst Upgrades and Downgrades

NFLX has been the topic of a number of research reports. Bank of America lowered their price objective on shares of Netflix from $125.00 to $105.00 and set a “buy” rating on the stock in a research note on Friday, July 17th. JPMorgan Chase & Co. restated a “buy” rating on shares of Netflix in a research report on Thursday, August 20th. Rosenblatt Securities set a $75.00 price target on shares of Netflix and gave the company a “neutral” rating in a report on Friday, July 17th. Wedbush lowered their price target on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research report on Friday, July 17th. Finally, Daiwa Securities Group dropped their price objective on shares of Netflix from $102.00 to $76.00 and set an “outperform” rating for the company in a research note on Wednesday, July 22nd. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, sixteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $96.65.

Netflix Stock Performance

The stock has a market cap of $319.67 billion, a PE ratio of 24.16, a P/E/G ratio of 1.10 and a beta of 1.53. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The stock has a 50-day simple moving average of $75.61 and a 200-day simple moving average of $84.46.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter last year, the firm posted $0.72 EPS. The business’s revenue for the quarter was up 13.4% compared to the same quarter last year. Equities analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, insider David Hyman sold 5,723 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $23,027,885. The trade was a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard Barton sold 2,160 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the transaction, the director owned 246 shares in the company, valued at $18,474.60. This represents a 89.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 213,595 shares of company stock valued at $15,812,072. 1.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently bought and sold shares of NFLX. Shepherd Street Advisors LLC bought a new stake in shares of Netflix during the 4th quarter worth about $2,216,000. University of Texas Texas AM Investment Management Co. grew its position in Netflix by 798.5% in the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock worth $3,989,000 after buying an additional 37,807 shares during the last quarter. New Mexico Educational Retirement Board increased its holdings in shares of Netflix by 900.0% in the fourth quarter. New Mexico Educational Retirement Board now owns 192,210 shares of the Internet television network’s stock valued at $18,022,000 after buying an additional 172,989 shares in the last quarter. Ritholtz Wealth Management increased its holdings in shares of Netflix by 25.0% in the first quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock valued at $10,235,000 after buying an additional 21,260 shares in the last quarter. Finally, Natixis Advisors LLC lifted its position in shares of Netflix by 797.3% during the 4th quarter. Natixis Advisors LLC now owns 4,989,919 shares of the Internet television network’s stock valued at $467,854,000 after acquiring an additional 4,433,837 shares during the last quarter. 80.93% of the stock is owned by institutional investors.

About Netflix

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.