Netflix (NASDAQ:NFLX) Trading Down 3.5% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX)’s share price dropped 3.5% during trading on Thursday . The stock traded as low as $946.27 and last traded at $956.55. Approximately 1,776,445 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 3,304,622 shares. The stock had previously closed at $990.92.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on NFLX shares. Needham & Company LLC lifted their target price on Netflix from $800.00 to $1,150.00 and gave the stock a “buy” rating in a research report on Wednesday, January 22nd. Bank of America lifted their price objective on shares of Netflix from $1,000.00 to $1,175.00 and gave the company a “buy” rating in a report on Wednesday, January 22nd. JPMorgan Chase & Co. upped their target price on shares of Netflix from $1,000.00 to $1,150.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 22nd. Wolfe Research raised shares of Netflix from a “peer perform” rating to an “outperform” rating and set a $1,100.00 price target for the company in a research note on Thursday, January 23rd. Finally, Pivotal Research boosted their price target on Netflix from $1,100.00 to $1,250.00 and gave the company a “buy” rating in a report on Wednesday, January 22nd. Ten investment analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,021.70.

Netflix Trading Down 8.6 %

The firm has a market cap of $387.34 billion, a PE ratio of 45.79, a P/E/G ratio of 2.12 and a beta of 1.27. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.22 and a current ratio of 1.22. The company has a 50 day simple moving average of $950.95 and a two-hundred day simple moving average of $838.65.

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

Insider Transactions at Netflix

In other news, insider David A. Hyman sold 41,121 shares of the company’s stock in a transaction dated Thursday, January 30th. The stock was sold at an average price of $979.01, for a total value of $40,257,870.21. Following the sale, the insider now owns 31,610 shares in the company, valued at $30,946,506.10. This represents a 56.54 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gregory K. Peters sold 102,228 shares of Netflix stock in a transaction that occurred on Thursday, January 30th. The shares were sold at an average price of $980.74, for a total value of $100,259,088.72. Following the transaction, the chief executive officer now owns 12,950 shares of the company’s stock, valued at approximately $12,700,583. This represents a 88.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 288,103 shares of company stock worth $279,142,041 over the last 90 days. 1.76% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Netflix

Institutional investors have recently made changes to their positions in the company. Swedbank AB boosted its stake in shares of Netflix by 1.8% during the 3rd quarter. Swedbank AB now owns 465,208 shares of the Internet television network’s stock worth $329,958,000 after acquiring an additional 8,024 shares in the last quarter. Moloney Securities Asset Management LLC acquired a new position in Netflix in the 3rd quarter worth about $777,000. United Advisor Group LLC boosted its position in Netflix by 23.0% during the third quarter. United Advisor Group LLC now owns 839 shares of the Internet television network’s stock worth $595,000 after purchasing an additional 157 shares in the last quarter. Pittenger & Anderson Inc. grew its holdings in Netflix by 30.5% in the third quarter. Pittenger & Anderson Inc. now owns 2,314 shares of the Internet television network’s stock valued at $1,641,000 after purchasing an additional 541 shares during the period. Finally, Crestwood Advisors Group LLC increased its position in shares of Netflix by 7.2% in the third quarter. Crestwood Advisors Group LLC now owns 3,027 shares of the Internet television network’s stock valued at $2,147,000 after buying an additional 203 shares in the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

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.