Netflix (NASDAQ:NFLX) Shares Gap Down on Insider Selling

Shares of Netflix, Inc. (NASDAQ:NFLX) gapped down prior to trading on Monday following insider selling activity. The stock had previously closed at $1,156.49, but opened at $1,114.80. Netflix shares last traded at $1,131.24, with a volume of 2,405,306 shares.

Specifically, Director Reed Hastings sold 26,977 shares of the firm’s stock in a transaction on Thursday, May 1st. The stock was sold at an average price of $1,133.05, for a total value of $30,566,289.85. Following the transaction, the director now owns 394 shares in the company, valued at approximately $446,421.70. This trade represents a 98.56 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Spencer Adam Neumann sold 2,601 shares of the company’s stock in a transaction on Thursday, May 1st. The stock was sold at an average price of $1,132.38, for a total transaction of $2,945,320.38. Following the sale, the chief financial officer now directly owns 3,691 shares of the company’s stock, valued at $4,179,614.58. The trade was a 41.34 % decrease in their position. The disclosure for this sale can be found here. In related news, Director Jay C. Hoag sold 32,515 shares of the business’s stock in a transaction dated Tuesday, April 29th. The shares were sold at an average price of $1,101.97, for a total transaction of $35,830,554.55. Following the transaction, the director now directly owns 79,040 shares in the company, valued at approximately $87,099,708.80. The trade was a 29.15 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the stock. Wells Fargo & Company raised their target price on shares of Netflix from $1,210.00 to $1,222.00 and gave the stock an “overweight” rating in a research note on Monday, April 21st. Canaccord Genuity Group lifted their price objective on Netflix from $1,150.00 to $1,200.00 and gave the stock a “buy” rating in a research report on Monday, April 21st. Cfra Research upgraded Netflix to a “strong-buy” rating in a report on Monday, April 28th. Loop Capital reiterated a “hold” rating on shares of Netflix in a report on Monday, March 24th. Finally, Macquarie boosted their price target on shares of Netflix from $1,150.00 to $1,200.00 and gave the company an “outperform” rating in a research report on Monday, April 21st. Ten investment analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $1,084.91.

Netflix Price Performance

The stock has a fifty day simple moving average of $971.22 and a 200-day simple moving average of $923.56. The company has a market capitalization of $482.62 billion, a PE ratio of 57.19, a P/E/G ratio of 2.12 and a beta of 1.55. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.56.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings results on Thursday, April 17th. The Internet television network reported $6.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.74 by $0.87. The firm had revenue of $10.54 billion during the quarter, compared to the consensus estimate of $10.51 billion. Netflix had a return on equity of 38.32% and a net margin of 22.34%. During the same period in the prior year, the company posted $8.28 earnings per share. Equities analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. HighPoint Advisor Group LLC grew its position in shares of Netflix by 2.3% during the first quarter. HighPoint Advisor Group LLC now owns 12,107 shares of the Internet television network’s stock worth $11,290,000 after acquiring an additional 275 shares during the last quarter. Crestwood Advisors Group LLC boosted its stake in Netflix by 16.8% during the 1st quarter. Crestwood Advisors Group LLC now owns 3,759 shares of the Internet television network’s stock worth $3,505,000 after purchasing an additional 542 shares during the period. Hazlett Burt & Watson Inc. increased its stake in Netflix by 3.4% in the first quarter. Hazlett Burt & Watson Inc. now owns 1,056 shares of the Internet television network’s stock valued at $986,000 after purchasing an additional 35 shares during the period. Kingsman Wealth Management Inc. purchased a new stake in shares of Netflix in the first quarter valued at about $339,000. Finally, GW&K Investment Management LLC boosted its stake in shares of Netflix by 5.3% during the first quarter. GW&K Investment Management LLC now owns 277 shares of the Internet television network’s stock worth $258,000 after buying an additional 14 shares during the period. Institutional investors and hedge funds 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.