Netflix (NASDAQ:NFLX) Stock Price Down 3.3% on Insider Selling

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 3.3% during trading on Friday following insider selling activity. The stock traded as low as $63.31 and last traded at $63.41. Approximately 35,255,154 shares were traded during trading, a decline of 18% from the average session volume of 42,795,762 shares. The stock had previously closed at $65.56.

Specifically, CFO Spencer Neumann sold 9,253 shares of the firm’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $66.15, for a total value of $612,085.95. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $4,881,010.05. This trade represents a 11.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore Sarandos sold 27,312 shares of Netflix stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $66.20, for a total transaction of $1,808,054.40. Following the transaction, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at approximately $11,846,754.80. This represents a 13.24% decrease in their ownership of the stock. 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 related news, insider David Hyman sold 5,727 shares of the company’s stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $64.55, for a total transaction of $369,677.85. Following the transaction, the insider directly owned 166,100 shares in the company, valued at approximately $10,721,755. This represents a 3.33% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on NFLX. Oppenheimer reissued an “outperform” rating and issued a $80.00 price objective (down from $85.00) on shares of Netflix in a research report on Wednesday, October 21st. CLSA began coverage on Netflix in a research report on Monday, July 20th. They set an “outperform” rating for the company. KeyCorp cut their target price on Netflix from $92.00 to $85.00 and set an “overweight” rating on the stock in a research note on Tuesday, October 13th. KGI Securities cut Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 target price on the stock. in a research note on Friday, July 17th. Finally, Jefferies Financial Group set a $85.00 price target on Netflix and gave the stock a “buy” rating in a report on Thursday, October 15th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $89.14.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered the live-action Stranger Things prequel Other Worlds as a series. The new project could extend a popular franchise and support viewer engagement, though any financial benefit is likely to depend on its eventual release and audience response. Article: Stranger Things prequel announced
• Positive Sentiment: A valuation analysis argues Netflix shares look inexpensive and estimates about 23% upside to fair value. This is a bullish opinion, not a company forecast or guarantee. Article: Netflix stock looks cheap
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales; the reported transactions were to cover tax withholding on vested equity awards. That stated purpose makes them less direct evidence of a negative view of Netflix’s prospects. Article: Netflix insider share sale
• Negative Sentiment: Coverage noted NFLX slipped despite the new franchise plans. That suggests the announcement has not overcome broader caution: one report says the shares are down 40.2% over the past year, while the supplied market data places them near their 52-week low and below their 50- and 200-day averages. Article: Netflix slips despite new Stranger Things plans

Netflix Stock Down 3.3%

The business’s fifty day moving average is $71.36 and its two-hundred day moving average is $81.09. The company has a market cap of $260.38 billion, a P/E ratio of 18.33, a price-to-earnings-growth ratio of 0.97 and a beta of 1.62. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.82 by $0.05. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The company had revenue of $12.87 billion during the quarter, compared to analysts’ expectations of $12.87 billion. During the same period in the previous year, the company earned $0.59 EPS. The firm’s quarterly revenue was up 11.9% on a year-over-year basis. Equities analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. purchased a new position in shares of Netflix in the second quarter worth approximately $24,902,221,000. State Street Corp increased its stake in shares of Netflix by 4.9% in the second quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock worth $12,861,252,000 after acquiring an additional 8,474,820 shares during the last quarter. Bank of America Corp DE raised its stake in shares of Netflix by 4.3% during the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock worth $5,571,201,000 after purchasing an additional 2,376,349 shares in the last quarter. Bank of New York Mellon Corp bought a new position in Netflix during the second quarter valued at approximately $1,906,482,000. Finally, Legal & General Group Plc bought a new position in shares of Netflix during the 2nd quarter valued at $1,886,526,000. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand.

Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.