Netflix (NASDAQ:NFLX) Shares Gap Down After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) gapped down before the market opened on Friday after Canaccord Genuity Group downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $610.56, but opened at $567.88. Canaccord Genuity Group now has a $585.00 price target on the stock, down from their previous price target of $720.00. Netflix shares last traded at $569.40, with a volume of 4,111,592 shares traded.

Several other analysts also recently weighed in on NFLX. Piper Sandler lifted their price objective on Netflix from $550.00 to $600.00 and gave the company a “neutral” rating in a report on Friday, April 12th. KeyCorp boosted their target price on shares of Netflix from $580.00 to $705.00 and gave the stock an “overweight” rating in a report on Wednesday, March 20th. Pivotal Research upped their target price on Netflix from $765.00 to $800.00 and gave the company a “buy” rating in a research report on Friday. Oppenheimer upped their price objective on Netflix from $615.00 to $725.00 and gave the stock an “outperform” rating in a research report on Monday, March 11th. Finally, UBS Group upped their price objective on Netflix from $570.00 to $685.00 and gave the stock a “buy” rating in a research report on Tuesday, February 27th. One investment analyst has rated the stock with a sell rating, twelve have assigned a hold rating and twenty-two have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $628.76.

Insider Transactions at Netflix

In related news, Chairman Reed Hastings sold 20,566 shares of the business’s stock in a transaction dated Monday, April 1st. The shares were sold at an average price of $610.42, for a total value of $12,553,897.72. Following the sale, the chairman now directly owns 28 shares in the company, valued at approximately $17,091.76. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In related news, Director Jay C. Hoag sold 47,000 shares of the business’s stock in a transaction dated Wednesday, January 24th. The shares were sold at an average price of $550.50, for a total value of $25,873,500.00. Following the sale, the director now directly owns 431,034 shares in the company, valued at approximately $237,284,217. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Chairman Reed Hastings sold 20,566 shares of the business’s stock in a transaction dated Monday, April 1st. The shares were sold at an average price of $610.42, for a total transaction of $12,553,897.72. Following the completion of the sale, the chairman now owns 28 shares in the company, valued at $17,091.76. The disclosure for this sale can be found here. Insiders have sold a total of 268,335 shares of company stock worth $151,619,811 in the last quarter. Company insiders own 2.45% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently bought and sold shares of the company. Authentikos Wealth Advisory LLC acquired a new position in shares of Netflix during the third quarter worth about $25,000. Spartan Planning & Wealth Management purchased a new stake in Netflix during the third quarter worth approximately $26,000. Carmel Capital Partners LLC lifted its stake in Netflix by 290.0% during the third quarter. Carmel Capital Partners LLC now owns 78 shares of the Internet television network’s stock worth $30,000 after purchasing an additional 58 shares during the last quarter. VitalStone Financial LLC lifted its stake in Netflix by 933.3% during the fourth quarter. VitalStone Financial LLC now owns 62 shares of the Internet television network’s stock worth $30,000 after purchasing an additional 56 shares during the last quarter. Finally, Aspect Partners LLC purchased a new stake in Netflix during the fourth quarter worth approximately $32,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Stock Performance

The firm has a 50 day moving average of $605.77 and a two-hundred day moving average of $511.86. The stock has a market cap of $247.75 billion, a PE ratio of 47.41, a PEG ratio of 1.65 and a beta of 1.22. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.12 and a quick ratio of 1.12.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, April 18th. The Internet television network reported $5.28 earnings per share for the quarter, beating analysts’ consensus estimates of $4.51 by $0.77. Netflix had a return on equity of 24.76% and a net margin of 16.04%. The company had revenue of $9.37 billion during the quarter, compared to analysts’ expectations of $9.28 billion. During the same quarter in the previous year, the business earned $2.88 earnings per share. The firm’s revenue for the quarter was up 14.8% on a year-over-year basis. Research analysts predict that Netflix, Inc. will post 17.05 EPS for the current fiscal year.

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.