Netflix (NASDAQ:NFLX) Stock Price Down 4.4% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s share price dropped 4.4% during trading on Friday . The stock traded as low as $861.01 and last traded at $876.26. Approximately 2,044,777 shares changed hands during trading, a decline of 43% from the average daily volume of 3,604,901 shares. The stock had previously closed at $917.05.

Analyst Ratings Changes

Several brokerages have recently commented on NFLX. Bank of America boosted their target price on shares of Netflix from $1,000.00 to $1,175.00 and gave the company a “buy” rating in a research note on Wednesday, January 22nd. Barclays upgraded shares of Netflix from an “underweight” rating to an “equal weight” rating and upped their price target for the stock from $715.00 to $900.00 in a research report on Wednesday, January 22nd. Evercore ISI raised their price objective on shares of Netflix from $950.00 to $1,100.00 and gave the company an “outperform” rating in a research report on Wednesday, January 22nd. Phillip Securities lowered shares of Netflix from a “hold” rating to a “moderate sell” rating in a research report on Friday, January 24th. Finally, Wedbush reiterated an “outperform” rating and issued a $1,150.00 price target (up previously from $950.00) on shares of Netflix in a report on Wednesday, January 22nd. Ten research analysts have rated the stock with a hold rating, twenty-seven have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, Netflix has an average rating of “Moderate Buy” and an average price target of $1,023.74.

Netflix Stock Down 6.7 %

The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.56. The stock’s fifty day moving average price is $970.24 and its 200-day moving average price is $875.80. The company has a market capitalization of $366.10 billion, a price-to-earnings ratio of 43.16, a P/E/G ratio of 2.12 and a beta of 1.38.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share (EPS) 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 analysts’ expectations of $10.14 billion. Netflix had a return on equity of 38.32% and a net margin of 22.34%. The business’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, sell-side analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Richard N. Barton sold 6,364 shares of the stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of $879.38, for a total value of $5,596,374.32. Following the transaction, the director now directly owns 246 shares of the company’s stock, valued at $216,327.48. This represents a 96.28 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David A. Hyman sold 41,121 shares of the firm’s stock in a transaction that occurred on Thursday, January 30th. The stock was sold at an average price of $979.01, for a total transaction of $40,257,870.21. Following the sale, the insider now owns 31,610 shares of the company’s stock, valued at $30,946,506.10. This trade represents a 56.54 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 280,676 shares of company stock valued at $273,515,672 over the last 90 days. 1.76% of the stock is currently owned by insiders.

Institutional Trading of Netflix

Hedge funds and other institutional investors have recently bought and sold shares of the business. Webster Bank N. A. lifted its position in shares of Netflix by 1.2% during the 1st quarter. Webster Bank N. A. now owns 2,501 shares of the Internet television network’s stock valued at $2,332,000 after acquiring an additional 30 shares during the period. Quent Capital LLC increased its holdings in Netflix by 3.9% in the 1st quarter. Quent Capital LLC now owns 2,337 shares of the Internet television network’s stock valued at $2,179,000 after buying an additional 88 shares during the period. Capital Market Strategies LLC raised its position in shares of Netflix by 51.9% in the 1st quarter. Capital Market Strategies LLC now owns 805 shares of the Internet television network’s stock valued at $751,000 after buying an additional 275 shares in the last quarter. Central Pacific Bank Trust Division lifted its stake in Netflix by 0.8% during the first quarter. Central Pacific Bank Trust Division now owns 2,470 shares of the Internet television network’s stock worth $2,303,000 after purchasing an additional 20 shares during the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of Netflix by 68.1% during the 1st quarter. Versant Capital Management Inc now owns 1,116 shares of the Internet television network’s stock worth $1,041,000 after buying an additional 452 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

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.