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

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 6.9% during trading 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. Approximately 8,019,133 shares traded hands during mid-day trading, an increase of 85% from the average daily volume of 4,330,454 shares. The stock had previously closed at $610.56.

NFLX has been the topic of several other research reports. Bank of America increased their target price on Netflix from $585.00 to $650.00 and gave the company a “buy” rating in a report on Wednesday, January 24th. TD Cowen raised their price objective on Netflix from $600.00 to $725.00 and gave the stock a “buy” rating in a report on Monday, April 8th. StockNews.com raised Netflix from a “hold” rating to a “buy” rating in a report on Monday, February 26th. Piper Sandler raised their price objective on Netflix from $550.00 to $600.00 and gave the stock a “neutral” rating in a report on Friday, April 12th. Finally, BMO Capital Markets reaffirmed an “outperform” rating and set a $713.00 price objective (up previously from $638.00) on shares of Netflix in a report on Wednesday. One analyst has rated the stock with a sell rating, twelve have issued a hold rating and twenty-two have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $630.58.

Insider Buying and Selling at Netflix

In other Netflix news, insider David A. Hyman sold 47,574 shares of the stock in a transaction dated Wednesday, January 24th. The shares were sold at an average price of $537.92, for a total value of $25,591,006.08. Following the completion of the transaction, the insider now directly owns 31,610 shares of the company’s stock, valued at $17,003,651.20. The sale was disclosed in a filing with the SEC, which is available at this link. In other news, insider David A. Hyman sold 47,574 shares of the firm’s stock in a transaction that occurred on Wednesday, January 24th. The shares were sold at an average price of $537.92, for a total transaction of $25,591,006.08. Following the completion of the transaction, the insider now directly owns 31,610 shares of the company’s stock, valued at approximately $17,003,651.20. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Chairman Reed Hastings sold 20,566 shares of the firm’s stock in a transaction that occurred 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 transaction, the chairman now directly owns 28 shares of the company’s stock, valued at $17,091.76. The disclosure for this sale can be found here. Over the last three months, insiders sold 268,335 shares of company stock valued at $151,619,811. Corporate insiders own 2.45% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of NFLX. KFA Private Wealth Group LLC grew its stake in Netflix by 1.9% in the 4th quarter. KFA Private Wealth Group LLC now owns 958 shares of the Internet television network’s stock worth $466,000 after acquiring an additional 18 shares during the period. Legacy Capital Group California Inc. grew its stake in Netflix by 0.6% in the 4th quarter. Legacy Capital Group California Inc. now owns 2,833 shares of the Internet television network’s stock worth $1,379,000 after acquiring an additional 18 shares during the period. Founders Financial Alliance LLC grew its stake in Netflix by 2.4% in the 4th quarter. Founders Financial Alliance LLC now owns 757 shares of the Internet television network’s stock worth $369,000 after acquiring an additional 18 shares during the period. Capital Advisors Ltd. LLC grew its stake in Netflix by 4.6% in the 1st quarter. Capital Advisors Ltd. LLC now owns 411 shares of the Internet television network’s stock worth $250,000 after acquiring an additional 18 shares during the period. Finally, Addison Advisors LLC grew its stake in Netflix by 7.8% in the 4th quarter. Addison Advisors LLC now owns 276 shares of the Internet television network’s stock worth $134,000 after acquiring an additional 20 shares during the period. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Price Performance

The stock has a market capitalization of $240.20 billion, a PE ratio of 46.21, a PEG ratio of 1.65 and a beta of 1.22. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.69. The company’s 50 day simple moving average is $605.65 and its 200 day simple moving average is $513.07.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Thursday, April 18th. The Internet television network reported $5.28 earnings per share for the quarter, beating analysts’ consensus estimates of $4.51 by $0.77. Netflix had a net margin of 16.04% and a return on equity of 24.76%. The company had revenue of $9.37 billion for the quarter, compared to analyst estimates of $9.28 billion. During the same quarter last year, the business earned $2.88 EPS. Netflix’s revenue for the quarter was up 14.8% on a year-over-year basis. On average, equities analysts anticipate that Netflix, Inc. will post 17.05 earnings per share for the current year.

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.