Netflix (NASDAQ:NFLX) Stock Price Down 2.2% on Insider Selling

Netflix, Inc. (NASDAQ:NFLX)’s share price was down 2.2% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $81.93 and last traded at $85.36. Approximately 127,285,778 shares traded hands during trading, an increase of 133% from the average daily volume of 54,547,723 shares. The stock had previously closed at $87.26.

Specifically, insider David A. Hyman sold 23,439 shares of the company’s stock in a transaction that occurred on Friday, January 16th. The stock was sold at an average price of $88.11, for a total transaction of $2,065,210.29. Following the completion of the sale, the insider owned 316,100 shares in the company, valued at $27,851,571. This represents a 6.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Bradford L. Smith sold 31,790 shares of the business’s stock in a transaction on Thursday, January 15th. The shares were sold at an average price of $88.86, for a total transaction of $2,824,859.40. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $7,081,253.40. This represents a 28.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

NFLX has been the topic of a number of analyst reports. Pivotal Research lowered their price objective on Netflix from $105.00 to $95.00 and set a “hold” rating on the stock in a report on Wednesday. Cfra downgraded Netflix from a “strong-buy” rating to a “hold” rating and set a $100.00 price target for the company. in a research report on Monday, January 5th. DZ Bank reaffirmed a “buy” rating on shares of Netflix in a research note on Wednesday, December 17th. Guggenheim cut their target price on shares of Netflix from $145.00 to $130.00 and set a “buy” rating on the stock in a report on Wednesday. Finally, Moffett Nathanson reduced their price target on shares of Netflix from $140.00 to $115.00 and set a “buy” rating for the company in a research note on Wednesday. Two analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $120.72.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 beat and subscriber growth — Netflix slightly beat EPS/revenue expectations and reported ~325M+ paid subscribers, showing the core streaming business is still growing. Article Title
• Positive Sentiment: Advertising momentum — Management highlighted accelerating ad revenue (management cited ~$1.5B+ in 2025), supporting an additional monetization path beyond subscriptions. Article Title
• Neutral Sentiment: All‑cash Warner Bros. bid — Netflix amended its Warner Bros. Discovery offer to an all‑cash structure (same headline price), which may speed approval but concentrates cash needs on Netflix. That reduces deal execution risk but raises financing focus. Article Title
• Neutral Sentiment: Regulatory/competitive uncertainty — EU regulators are expected to review rival bids from Netflix and Paramount at the same time, adding an unusual regulatory variable to the deal timeline. Article Title
• Negative Sentiment: Disappointing near‑term guidance — Q1 EPS guidance (0.76) came in below some Street estimates, which prompted the initial sell‑off despite the beat on the quarter. Article Title
• Negative Sentiment: Buyback pause to fund Warner deal — Netflix paused its share-repurchase program to conserve cash for the Warner Bros. transaction, removing a direct shareholder-return mechanism and raising near-term capital allocation concerns. Article Title
• Negative Sentiment: Higher content spending and margin pressure — Netflix plans to raise program spending (~10% guide cited), which could compress margins in 2026 even if it supports long‑term growth. Article Title
• Negative Sentiment: Analysts trim targets and caution on the deal — Several firms cut price targets or lowered near‑term outlooks after the call as uncertainty around the Warner Bros. acquisition and guidance weighed on models. Article Title
• Negative Sentiment: Insider and investor selling / tactical trims — Notable insider sales and public selling (including some traders trimming positions) added to headline pressure and amplified the market move. Article Title • Article Title

Netflix Price Performance

The stock has a market capitalization of $361.70 billion, a P/E ratio of 35.66 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company’s 50 day simple moving average is $97.95 and its two-hundred day simple moving average is $112.22.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $12.05 billion during the quarter, compared to analysts’ expectations of $11.97 billion. Netflix had a net margin of 24.05% and a return on equity of 41.86%. Netflix’s revenue was up 17.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.43 EPS. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. As a group, equities analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. First Financial Corp IN lifted its holdings in shares of Netflix by 900.0% during the fourth quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after buying an additional 243 shares in the last quarter. DiNuzzo Private Wealth Inc. boosted its holdings in Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after purchasing an additional 239 shares during the period. Imprint Wealth LLC acquired a new position in shares of Netflix during the 3rd quarter worth approximately $25,000. Retirement Wealth Solutions LLC acquired a new position in Netflix in the 3rd quarter valued at $28,000. Finally, MB Levis & Associates LLC grew its stake in Netflix by 177.8% during the fourth quarter. MB Levis & Associates LLC now owns 300 shares of the Internet television network’s stock worth $28,000 after buying an additional 192 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

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.