Netflix (NASDAQ:NFLX) Shares Down 3.2% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX) shares were down 3.2% on Tuesday . The company traded as low as $919.02 and last traded at $919.70. Approximately 1,752,065 shares traded hands during trading, a decline of 49% from the average daily volume of 3,419,125 shares. The stock had previously closed at $950.02.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Arete Research upgraded shares of Netflix to a “hold” rating in a report on Thursday, January 23rd. Rosenblatt Securities upgraded Netflix from a “neutral” rating to a “buy” rating and boosted their price target for the stock from $680.00 to $1,494.00 in a research note on Wednesday, January 22nd. Wedbush restated an “outperform” rating and set a $1,150.00 price objective (up previously from $950.00) on shares of Netflix in a research note on Wednesday, January 22nd. Wolfe Research upgraded Netflix from a “peer perform” rating to an “outperform” rating and set a $1,100.00 price objective on the stock in a report on Thursday, January 23rd. Finally, Pivotal Research upped their target price on Netflix from $1,100.00 to $1,250.00 and gave the company a “buy” rating in a research report on Wednesday, January 22nd. Ten research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $1,016.78.

Netflix Stock Down 2.1 %

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.22 and a quick ratio of 1.22. The firm has a market capitalization of $397.72 billion, a P/E ratio of 46.87, a PEG ratio of 2.12 and a beta of 1.38. The firm’s fifty day moving average price is $952.40 and its 200-day moving average price is $851.72.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share (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 during the quarter, compared to analyst estimates of $10.14 billion. During the same period last year, the company posted $2.11 EPS. The firm’s quarterly revenue was up 16.0% on a year-over-year basis. As a group, equities research analysts forecast that Netflix, Inc. will post 24.58 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Spencer Adam Neumann sold 2,601 shares of the firm’s stock in a transaction that occurred on Monday, March 3rd. The shares were sold at an average price of $982.05, for a total transaction of $2,554,312.05. Following the completion of the sale, the chief financial officer now directly owns 3,691 shares in the company, valued at approximately $3,624,746.55. This trade represents a 41.34 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Gregory K. Peters sold 4,939 shares of the firm’s stock in a transaction on Monday, February 10th. The shares were sold at an average price of $1,030.00, for a total transaction of $5,087,170.00. Following the transaction, 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 disclosure for this sale can be found here. Insiders have sold a total of 288,103 shares of company stock valued at $279,142,041 over the last three months. Company insiders own 1.76% of the company’s stock.

Institutional Investors Weigh In On Netflix

A number of large investors have recently bought and sold shares of the business. West Michigan Advisors LLC increased its holdings in shares of Netflix by 1.3% during the 4th quarter. West Michigan Advisors LLC now owns 776 shares of the Internet television network’s stock valued at $692,000 after acquiring an additional 10 shares during the last quarter. Warwick Investment Management Inc. grew its holdings in Netflix by 3.5% during the fourth quarter. Warwick Investment Management Inc. now owns 298 shares of the Internet television network’s stock valued at $266,000 after purchasing an additional 10 shares during the last quarter. MRP Capital Investments LLC grew its holdings in Netflix by 1.0% during the fourth quarter. MRP Capital Investments LLC now owns 1,052 shares of the Internet television network’s stock valued at $938,000 after purchasing an additional 10 shares during the last quarter. Bedell Frazier Investment Counselling LLC raised its position in shares of Netflix by 2.2% in the fourth quarter. Bedell Frazier Investment Counselling LLC now owns 462 shares of the Internet television network’s stock valued at $412,000 after purchasing an additional 10 shares during the period. Finally, Mission Creek Capital Partners Inc. lifted its stake in shares of Netflix by 0.3% in the fourth quarter. Mission Creek Capital Partners Inc. now owns 3,826 shares of the Internet television network’s stock worth $3,410,000 after buying an additional 10 shares during the last quarter. 80.93% of the stock is currently owned by 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.