Netflix (NASDAQ:NFLX) Stock Price Down 2% on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares dropped 2% during mid-day trading on Monday after Seaport Research Partners downgraded the stock from a buy rating to a neutral rating. The stock traded as low as $66.69 and last traded at $67.60. Approximately 60,421,264 shares changed hands during mid-day trading, an increase of 31% from the average daily volume of 46,003,379 shares. The stock had previously closed at $68.95.

A number of other brokerages have also recently weighed in on NFLX. The Goldman Sachs Group cut shares of Netflix from an “underweight” rating to a “sell” rating in a report on Monday. Bank of America reaffirmed a “buy” rating and issued a $125.00 price target on shares of Netflix in a report on Monday, May 18th. China Renaissance increased their price objective on Netflix from $90.00 to $100.00 and gave the company a “hold” rating in a research report on Friday, April 17th. TD Cowen cut their price objective on Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a research report on Friday. Finally, Jefferies Financial Group reduced their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating for the company in a research note on Wednesday, June 10th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $104.21.

Insider Buying and Selling at Netflix

In other Netflix news, Director Bradford L. Smith sold 35,990 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the sale, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reed Hastings sold 407,550 shares of the firm’s stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50. Following the sale, the director owned 3,940 shares of the company’s stock, valued at $366,932.20. The trade was a 99.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 899,839 shares of company stock valued at $80,141,661 in the last ninety days. Company insiders own 1.24% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Phillip Securities upgraded Netflix to Buy and set a $110 target, arguing that engagement shows “no signs of slowing” despite the selloff. Netflix Stock Forecast Gets Hiked from Hold to Buy as Analyst Sees ‘No Signs of Slowing Engagement’
• Positive Sentiment: Several bullish commentaries say the post-earnings drop may have created a buy-the-dip opportunity, pointing to Netflix’s scale, ad growth, and possible upside if management executes. Netflix Crashes to a 52-Week Low After Earnings. Why This Is the Best Time to Buy NFLX Stock.
• Neutral Sentiment: Netflix is pushing employees toward “AI fluency,” which signals a broader effort to use artificial intelligence internally, but the near-term stock impact is unclear. Netflix’s top product exec says all employees should have an ‘aspiration for AI fluency’
• Negative Sentiment: Recent earnings coverage highlights a revenue miss, weaker Q3 outlook, and concerns that growth is slowing, which helped drive the stock to fresh lows. Netflix’s Post-Earnings Crash: Should You Buy the Stock While It’s Below $70?
• Negative Sentiment: Multiple analysts have cut price targets or turned cautious, reinforcing the market’s concern that Netflix’s growth narrative is weakening. Why Is Netflix Stock Falling Monday?

Institutional Trading of Netflix

Several institutional investors have recently made changes to their positions in the stock. Northside Capital Management LLC grew its position in Netflix by 1,686.2% during the second quarter. Northside Capital Management LLC now owns 117,351 shares of the Internet television network’s stock valued at $8,379,000 after purchasing an additional 110,781 shares in the last quarter. Whitener Capital Management Inc. boosted its stake in shares of Netflix by 9.6% during the 2nd quarter. Whitener Capital Management Inc. now owns 16,515 shares of the Internet television network’s stock valued at $1,179,000 after buying an additional 1,445 shares during the period. Tema ETFs LLC boosted its stake in shares of Netflix by 10.7% during the 2nd quarter. Tema ETFs LLC now owns 84,291 shares of the Internet television network’s stock valued at $6,018,000 after buying an additional 8,120 shares during the period. West Branch Capital LLC boosted its stake in shares of Netflix by 3.2% during the 2nd quarter. West Branch Capital LLC now owns 33,421 shares of the Internet television network’s stock valued at $2,386,000 after buying an additional 1,042 shares during the period. Finally, Rise Advisors LLC grew its holdings in shares of Netflix by 7.7% during the 2nd quarter. Rise Advisors LLC now owns 3,982 shares of the Internet television network’s stock valued at $284,000 after acquiring an additional 284 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Netflix Stock Performance

The company has a current ratio of 1.14, a quick ratio of 1.41 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $284.65 billion, a PE ratio of 21.28, a PEG ratio of 0.88 and a beta of 1.52. The firm’s fifty day moving average price is $79.80 and its 200 day moving average price is $86.67.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same period last year, the company earned $0.72 earnings per share. On average, research analysts anticipate that Netflix, Inc. will post 3.6 earnings per share for the current year.

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.