Insider Selling: Netflix (NASDAQ:NFLX) CEO Sells $1,737,589.44 in Stock

Netflix, Inc. (NASDAQ:NFLX) CEO Gregory Peters sold 27,312 shares of the company’s stock in a transaction dated Monday, November 9th. The shares were sold at an average price of $63.62, for a total transaction of $1,737,589.44. Following the completion of the transaction, the chief executive officer owned 119,412 shares in the company, valued at approximately $7,596,991.44. This trade represents a 18.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Netflix Stock Performance

NFLX stock traded down $0.69 during mid-day trading on Tuesday, hitting $63.26. 27,196,231 shares of the company were exchanged, compared to its average volume of 47,136,484. The business has a 50 day simple moving average of $70.32 and a 200-day simple moving average of $80.76. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.43. The stock has a market capitalization of $259.77 billion, a PE ratio of 21.83, a price-to-earnings-growth ratio of 0.94 and a beta of 1.62. Netflix, Inc. has a 1-year low of $61.39 and a 1-year high of $116.73.

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

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on NFLX. Phillip Securities downgraded Netflix from a “strong-buy” rating to a “moderate buy” rating in a research note on Friday, October 23rd. Wells Fargo & Company lowered Netflix from a “neutral” rating to an “underweight” rating and decreased their price objective for the company from $80.00 to $57.00 in a report on Friday, September 18th. KGI Securities cut Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective on the stock. in a research report on Friday, July 17th. Guggenheim dropped their target price on Netflix from $80.00 to $78.00 and set a “buy” rating for the company in a report on Wednesday, October 21st. Finally, Loop Capital reduced their target price on shares of Netflix from $115.00 to $95.00 and set a “buy” rating for the company in a research report on Friday, July 24th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and an average target price of $89.14.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s EMEA revenue grew 11% year over year in the third quarter. Management says sustaining that growth in Europe will depend partly on preserving creative freedom amid regulation. Article: Netflix boss says creativity and regulation are not happy bedfellows in Europe
• Neutral Sentiment: Netflix launched an international campaign using 35mm film, supported by a social series about creatives’ viewing tastes. The campaign may support brand engagement, but its financial impact is unclear. Article: Netflix embraces 35mm film in international campaign
• Neutral Sentiment: A report described November short interest as totaling zero shares, with a 0.0-day days-to-cover ratio. That figure does not indicate meaningful short positioning, despite the report’s claim of a large increase.
• Negative Sentiment: Investor confidence remains a concern: coverage cites slowing Netflix growth and evidence that viewers are watching less. A content leadership shake-up is among management’s steps to address the challenge, but the concerns weigh on the growth outlook. Article: Why Netflix Stock Plunged 11% in October
• Negative Sentiment: Netflix also declined amid weakness across entertainment stocks. Coverage linked the sector’s reaction to concerns about the film outlook and debt at the newly combined Warner Bros.–Paramount, though it characterized Netflix and Disney as relatively less affected. Article: Skydance Sinks as Warner Bros. Film Slump Overshadows Earnings Beat

Institutional Investors Weigh In On Netflix

Institutional investors have recently made changes to their positions in the stock. Nykredit A S bought a new stake in Netflix during the second quarter worth about $105,697,000. Rockland Trust Co. grew its stake in Netflix by 27.5% during the third quarter. Rockland Trust Co. now owns 219,221 shares of the Internet television network’s stock worth $15,253,000 after buying an additional 47,339 shares in the last quarter. Boomfish Wealth Group LLC increased its holdings in Netflix by 91.5% in the 3rd quarter. Boomfish Wealth Group LLC now owns 34,547 shares of the Internet television network’s stock valued at $2,404,000 after buying an additional 16,510 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in Netflix in the 2nd quarter valued at about $37,743,000. Finally, Sarasin & Partners LLP raised its position in shares of Netflix by 10.5% in the 2nd quarter. Sarasin & Partners LLP now owns 2,736,198 shares of the Internet television network’s stock valued at $195,365,000 after buying an additional 259,794 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

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.