Netflix (NASDAQ:NFLX) Shares Down 2% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s stock price fell 2% during mid-day trading on Friday . The stock traded as low as $818.22 and last traded at $820.71. 947,416 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 3,647,076 shares. The stock had previously closed at $837.26.

Wall Street Analysts Forecast Growth

NFLX has been the subject of several analyst reports. StockNews.com raised shares of Netflix from a “hold” rating to a “buy” rating in a research note on Tuesday, September 24th. Morgan Stanley increased their price objective on shares of Netflix from $820.00 to $830.00 and gave the stock an “overweight” rating in a research report on Friday, October 18th. KeyCorp upped their price target on Netflix from $760.00 to $785.00 and gave the stock an “overweight” rating in a research note on Friday, October 18th. Wolfe Research reaffirmed an “outperform” rating on shares of Netflix in a research note on Friday, October 18th. Finally, Sanford C. Bernstein increased their target price on Netflix from $625.00 to $780.00 and gave the stock a “market perform” rating in a research note on Friday, October 18th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and twenty-five have assigned a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $748.15.

Netflix Stock Down 2.0 %

The firm’s 50 day moving average price is $732.60 and its two-hundred day moving average price is $677.72. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.13 and a quick ratio of 1.13. The firm has a market cap of $350.90 billion, a price-to-earnings ratio of 46.45, a P/E/G ratio of 1.60 and a beta of 1.25.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Thursday, October 17th. The Internet television network reported $5.40 EPS for the quarter, topping the consensus estimate of $5.09 by $0.31. Netflix had a return on equity of 35.86% and a net margin of 20.70%. The business had revenue of $9.82 billion during the quarter, compared to analysts’ expectations of $9.77 billion. As a group, sell-side analysts forecast that Netflix, Inc. will post 19.78 earnings per share for the current fiscal year.

Insider Buying and Selling at Netflix

In other Netflix news, Chairman Reed Hastings sold 25,074 shares of the company’s stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $680.92, for a total value of $17,073,388.08. Following the transaction, the chairman now directly owns 85 shares in the company, valued at approximately $57,878.20. This represents a 99.66 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Timothy M. Haley sold 647 shares of the company’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $800.19, for a total transaction of $517,722.93. The disclosure for this sale can be found here. Over the last three months, insiders sold 205,084 shares of company stock valued at $146,747,101. Corporate insiders own 1.76% of the company’s stock.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently added to or reduced their stakes in the company. Denver PWM LLC acquired a new stake in shares of Netflix in the second quarter valued at about $25,000. RPg Family Wealth Advisory LLC acquired a new stake in Netflix in the third quarter valued at approximately $25,000. Proffitt & Goodson Inc. raised its stake in shares of Netflix by 380.0% during the second quarter. Proffitt & Goodson Inc. now owns 48 shares of the Internet television network’s stock valued at $32,000 after purchasing an additional 38 shares during the period. E Fund Management Hong Kong Co. Ltd. lifted its position in shares of Netflix by 700.0% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock worth $34,000 after purchasing an additional 42 shares in the last quarter. Finally, AlphaMark Advisors LLC grew its holdings in Netflix by 642.9% during the 2nd quarter. AlphaMark Advisors LLC now owns 52 shares of the Internet television network’s stock valued at $35,000 after purchasing an additional 45 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.