Netflix (NASDAQ:NFLX) Trading Down 6.9% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares fell 6.9% on Friday after Canaccord Genuity Group downgraded the stock from a buy rating to a hold rating. Canaccord Genuity Group now has a $585.00 price target on the stock, down from their previous price target of $720.00. Netflix traded as low as $556.61 and last traded at $568.25. 8,019,133 shares were traded during mid-day trading, an increase of 85% from the average session volume of 4,330,454 shares. The stock had previously closed at $610.56.

Several other analysts have also recently weighed in on the stock. TD Cowen upped their price objective on shares of Netflix from $600.00 to $725.00 and gave the stock a “buy” rating in a research note on Monday, April 8th. The Goldman Sachs Group raised their price target on Netflix from $500.00 to $565.00 and gave the company a “neutral” rating in a report on Wednesday, January 24th. StockNews.com upgraded Netflix from a “hold” rating to a “buy” rating in a research report on Monday, February 26th. Morgan Stanley increased their target price on Netflix from $600.00 to $700.00 and gave the stock an “overweight” rating in a report on Friday, April 12th. Finally, Citigroup lifted their price target on Netflix from $555.00 to $660.00 and gave the company a “neutral” rating in a report on Monday, March 25th. One analyst has rated the stock with a sell rating, twelve have assigned a hold rating and twenty-two have issued a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $628.76.

Insiders Place Their Bets

In other Netflix news, Chairman Reed Hastings sold 20,566 shares of Netflix stock in a transaction dated Monday, April 1st. The stock was sold at an average price of $610.42, for a total transaction of $12,553,897.72. Following the transaction, the chairman now directly owns 28 shares in the company, valued at $17,091.76. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other news, CEO Gregory K. Peters sold 13,655 shares of the company’s stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $543.80, for a total value of $7,425,589.00. Following the completion of the transaction, the chief executive officer now owns 13,090 shares in the company, valued at $7,118,342. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Chairman Reed Hastings sold 20,566 shares of the firm’s stock in a transaction on Monday, April 1st. The stock was sold at an average price of $610.42, for a total transaction of $12,553,897.72. Following 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. Over the last three months, insiders have sold 268,335 shares of company stock worth $151,619,811. Company insiders own 2.45% of the company’s stock.

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Columbia Trust Co 01012016 grew its position in Netflix by 15.3% in the fourth quarter. Columbia Trust Co 01012016 now owns 1,566 shares of the Internet television network’s stock valued at $762,000 after purchasing an additional 208 shares in the last quarter. Crumly & Associates Inc. lifted its stake in Netflix by 4.1% in the fourth quarter. Crumly & Associates Inc. now owns 2,105 shares of the Internet television network’s stock valued at $1,025,000 after acquiring an additional 83 shares during the last quarter. Venture Visionary Partners LLC grew its position in shares of Netflix by 15.4% in the 4th quarter. Venture Visionary Partners LLC now owns 9,849 shares of the Internet television network’s stock valued at $4,795,000 after acquiring an additional 1,318 shares during the period. Assenagon Asset Management S.A. grew its position in shares of Netflix by 142.6% in the 3rd quarter. Assenagon Asset Management S.A. now owns 667,597 shares of the Internet television network’s stock valued at $252,085,000 after acquiring an additional 392,427 shares during the period. Finally, Sandy Cove Advisors LLC raised its holdings in shares of Netflix by 10.6% in the 4th quarter. Sandy Cove Advisors LLC now owns 1,187 shares of the Internet television network’s stock valued at $578,000 after purchasing an additional 114 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Stock Performance

The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.12 and a current ratio of 1.12. The company has a market capitalization of $242.80 billion, a P/E ratio of 46.87, a PEG ratio of 1.65 and a beta of 1.22. The stock’s fifty day moving average price is $605.77 and its 200-day moving average price is $511.86.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, April 18th. The Internet television network reported $5.28 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.51 by $0.77. The company had revenue of $9.37 billion during the quarter, compared to analysts’ expectations of $9.28 billion. Netflix had a return on equity of 24.76% and a net margin of 16.04%. The business’s revenue was up 14.8% on a year-over-year basis. During the same period last year, the firm posted $2.88 earnings per share. As a group, research analysts anticipate 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.