Netflix (NASDAQ:NFLX) Stock Price Down 10.1% After Earnings Miss

Netflix, Inc. (NASDAQ:NFLX) shares fell 10.1% during trading on Wednesday following a dissappointing earnings announcement. The stock traded as low as $1,112.51 and last traded at $1,116.37. 14,544,607 shares changed hands during mid-day trading, an increase of 267% from the average session volume of 3,965,839 shares. The stock had previously closed at $1,241.35.

The Internet television network reported $5.87 EPS for the quarter, missing the consensus estimate of $6.88 by ($1.01). The company had revenue of $11.51 billion during the quarter, compared to the consensus estimate of $11.52 billion. Netflix had a net margin of 24.05% and a return on equity of 42.45%. Netflix’s revenue for the quarter was up 17.2% on a year-over-year basis. During the same period in the previous year, the company earned $5.40 EPS. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS.

Analyst Upgrades and Downgrades

Several brokerages recently commented on NFLX. Guggenheim reissued a “buy” rating and issued a $1,450.00 price objective on shares of Netflix in a research note on Wednesday. Wedbush dropped their price target on shares of Netflix from $1,500.00 to $1,400.00 and set an “outperform” rating for the company in a research note on Wednesday. Loop Capital raised shares of Netflix from a “hold” rating to a “buy” rating and raised their price target for the company from $1,150.00 to $1,350.00 in a research note on Wednesday, September 17th. BMO Capital Markets reaffirmed an “outperform” rating and set a $1,425.00 price target (up previously from $1,200.00) on shares of Netflix in a research note on Tuesday, July 15th. Finally, Sanford C. Bernstein reaffirmed a “buy” rating on shares of Netflix in a research note on Friday, October 17th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $1,341.22.

Insider Buying and Selling at Netflix

In related news, Director Reed Hastings sold 42,176 shares of Netflix stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $1,171.92, for a total transaction of $49,426,897.92. Following the completion of the transaction, the director owned 394 shares of the company’s stock, valued at $461,736.48. This trade represents a 99.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider David A. Hyman sold 424 shares of Netflix stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $1,158.67, for a total transaction of $491,276.08. Following the transaction, the insider directly owned 31,610 shares of the company’s stock, valued at $36,625,558.70. This represents a 1.32% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock valued at $122,710,980 over the last three months. 1.37% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

A number of hedge funds have recently bought and sold shares of NFLX. BG Investment Services Inc. acquired a new stake in Netflix in the second quarter worth $338,000. Resurgent Financial Advisors LLC grew its holdings in Netflix by 234.4% in the first quarter. Resurgent Financial Advisors LLC now owns 1,010 shares of the Internet television network’s stock worth $942,000 after purchasing an additional 708 shares during the period. MRA Advisory Group grew its holdings in Netflix by 28.4% in the second quarter. MRA Advisory Group now owns 919 shares of the Internet television network’s stock worth $1,231,000 after purchasing an additional 203 shares during the period. BNP PARIBAS ASSET MANAGEMENT Holding S.A. grew its holdings in Netflix by 42.1% in the first quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 441,861 shares of the Internet television network’s stock worth $412,059,000 after purchasing an additional 130,946 shares during the period. Finally, Sava Infond d.o.o. grew its holdings in Netflix by 25.1% in the second quarter. Sava Infond d.o.o. now owns 1,495 shares of the Internet television network’s stock worth $2,002,000 after purchasing an additional 300 shares during the period. Institutional investors own 80.93% of the company’s stock.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34. The firm has a market capitalization of $474.38 billion, a price-to-earnings ratio of 46.63, a PEG ratio of 2.09 and a beta of 1.59. The business’s fifty day simple moving average is $1,212.43 and its 200 day simple moving average is $1,182.04.

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.