Netflix (NASDAQ:NFLX) Stock Price Down 3.6% – Time to Sell?

Netflix, Inc. (NASDAQ:NFLX) dropped 3.6% during mid-day trading on Tuesday . The company traded as low as $77.71 and last traded at $78.72. Approximately 64,548,341 shares changed hands during trading, an increase of 46% from the average daily volume of 44,145,871 shares. The stock had previously closed at $81.67.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix reportedly lost a bidding contest for Roku after Fox agreed to buy the streaming platform in a $22 billion deal, raising concerns that Netflix may be left weaker in the race for distribution, ad-supported viewing, and connected-TV reach. Why Fox-Roku deal is hitting Netflix stock today
• Negative Sentiment: Reports that Netflix also lost out on Warner Bros. Discovery are fueling a broader narrative that the company is being outbid on key content/library assets, which could limit long-term growth and strategic expansion. Netflix (NFLX) Has Lost Out on Another Big Acquisition and Its Stock Is Being Punished
• Negative Sentiment: Lionsgate Studios shares jumped on speculation that Netflix could pursue a takeover, but the rumor also underscores that Netflix may need to buy growth rather than rely only on organic expansion, which can create uncertainty around capital allocation. Lionsgate Studios Stock (LION) Soars on Netflix Acquisition Interest

Analyst Upgrades and Downgrades

NFLX has been the topic of a number of recent research reports. Seaport Research Partners increased their price objective on shares of Netflix from $115.00 to $119.00 and gave the company a “buy” rating in a research note on Friday, April 17th. HSBC raised their target price on shares of Netflix from $106.00 to $114.00 and gave the company a “buy” rating in a research note on Friday, April 10th. Guggenheim restated a “buy” rating and issued a $120.00 target price on shares of Netflix in a research note on Friday, May 15th. Erste Group Bank downgraded shares of Netflix from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Finally, Needham & Company LLC restated a “buy” rating on shares of Netflix in a research note on Friday, April 17th. Two analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have assigned a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $114.39.

Netflix Trading Down 3.6%

The stock’s fifty day simple moving average is $90.59 and its 200-day simple moving average is $90.84. The firm has a market cap of $331.56 billion, a PE ratio of 25.43, a PEG ratio of 1.02 and a beta of 1.50. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.41 and a quick ratio of 1.41.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analysts’ expectations of $12.17 billion. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business’s quarterly revenue was up 16.2% on a year-over-year basis. During the same quarter last year, the company posted $6.61 earnings per share. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, sell-side analysts forecast that Netflix, Inc. will post 3.6 earnings per share for the current year.

Insiders Place Their Bets

In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total value of $2,402,636.64. Following the completion of the transaction, the chief executive officer owned 284,804 shares of the company’s stock, valued at approximately $25,054,207.88. This trade represents a 8.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider David A. Hyman sold 5,722 shares of the firm’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $27,842,088. This trade represents a 1.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 1,313,029 shares of company stock valued at $120,315,776. Corporate insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its stake in Netflix by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock valued at $46,183,983,000 after buying an additional 142,238 shares during the last quarter. Checchi Capital Advisers LLC raised its holdings in Netflix by 875.7% in the 4th quarter. Checchi Capital Advisers LLC now owns 31,143 shares of the Internet television network’s stock worth $2,920,000 after acquiring an additional 27,951 shares during the period. Contravisory Investment Management Inc. raised its holdings in Netflix by 837.2% in the 4th quarter. Contravisory Investment Management Inc. now owns 111,380 shares of the Internet television network’s stock worth $10,443,000 after acquiring an additional 99,496 shares during the period. BNC Wealth Management LLC raised its holdings in Netflix by 991.3% in the 4th quarter. BNC Wealth Management LLC now owns 41,229 shares of the Internet television network’s stock worth $3,866,000 after acquiring an additional 37,451 shares during the period. Finally, Crew Capital Management Ltd raised its holdings in Netflix by 1,021.9% in the 4th quarter. Crew Capital Management Ltd now owns 9,031 shares of the Internet television network’s stock worth $847,000 after acquiring an additional 8,226 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

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.