Netflix (NASDAQ:NFLX) Stock Price Down 2.3% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 2.3% during mid-day trading on Tuesday . The company traded as low as $1,027.20 and last traded at $1,034.48. Approximately 1,513,512 shares traded hands during mid-day trading, a decline of 63% from the average daily volume of 4,144,861 shares. The stock had previously closed at $1,058.60.

Wall Street Analysts Forecast Growth

Several brokerages have commented on NFLX. Deutsche Bank Aktiengesellschaft boosted their price objective on shares of Netflix from $650.00 to $875.00 and gave the company a “hold” rating in a research report on Wednesday, January 22nd. Arete Research raised Netflix to a “hold” rating in a report on Thursday, January 23rd. KeyCorp raised their price objective on Netflix from $1,000.00 to $1,100.00 and gave the company an “overweight” rating in a research note on Wednesday, January 22nd. Canaccord Genuity Group upgraded Netflix from a “hold” rating to a “buy” rating and lifted their target price for the company from $940.00 to $1,150.00 in a research report on Wednesday, January 22nd. Finally, UBS Group increased their target price on shares of Netflix from $1,040.00 to $1,150.00 and gave the stock a “buy” rating in a report on Wednesday, January 22nd. Ten analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $1,021.70.

Netflix Stock Performance

The stock has a market cap of $443.10 billion, a price-to-earnings ratio of 52.24, a P/E/G ratio of 2.11 and a beta of 1.27. The company’s fifty day simple moving average is $932.30 and its two-hundred day simple moving average is $809.59. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.22 and a quick ratio of 1.22.

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

Insider Activity

In other news, CEO Gregory K. Peters sold 4,939 shares of the company’s stock in a transaction on Monday, February 10th. The shares were sold at an average price of $1,030.00, for a total value of $5,087,170.00. Following the completion of the sale, the chief executive officer now owns 12,950 shares in the company, valued at $13,338,500. This represents a 27.61 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Chairman Reed Hastings sold 48,363 shares of the firm’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $896.60, for a total transaction of $43,362,265.80. Following the transaction, the chairman now directly owns 114 shares in the company, valued at $102,212.40. The trade was a 99.76 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 303,809 shares of company stock worth $290,374,484 over the last 90 days. 1.76% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently modified their holdings of NFLX. RPg Family Wealth Advisory LLC bought a new stake in Netflix during the third quarter worth $25,000. Pathway Financial Advisers LLC increased its position in shares of Netflix by 82.4% during the 4th quarter. Pathway Financial Advisers LLC now owns 31 shares of the Internet television network’s stock valued at $27,000 after purchasing an additional 14 shares during the last quarter. Brown Shipley& Co Ltd bought a new stake in shares of Netflix during the 4th quarter worth $27,000. Transce3nd LLC purchased a new position in shares of Netflix in the 4th quarter worth about $32,000. Finally, E Fund Management Hong Kong Co. Ltd. boosted its holdings in shares of Netflix by 700.0% in the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock worth $34,000 after buying an additional 42 shares during 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.