Netflix (NASDAQ:NFLX) Trading Down 4.7% on Insider Selling

Netflix, Inc. (NASDAQ:NFLX)’s stock price was down 4.7% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $75.23 and last traded at $75.86. Approximately 72,793,904 shares were traded during mid-day trading, an increase of 42% from the average daily volume of 51,326,773 shares. The stock had previously closed at $79.62.

Specifically, insider Cletus R. Willems sold 3,136 shares of the company’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $82.67, for a total value of $259,253.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $83.24, for a total transaction of $2,273,450.88. Following the transaction, the chief executive officer owned 122,140 shares in the company, valued at approximately $10,166,933.60. This represents a 18.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In related news, insider David A. Hyman sold 5,727 shares of the business’s stock in a transaction that occurred on Monday, February 9th. The shares were sold at an average price of $81.06, for a total value of $464,230.62. Following the completion of the transaction, the insider owned 316,100 shares of the company’s stock, valued at $25,623,066. The trade was a 1.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website.

Wall Street Analyst Weigh In

NFLX has been the topic of a number of analyst reports. Canaccord Genuity Group set a $125.00 price target on Netflix and gave the company a “buy” rating in a report on Wednesday, January 21st. HSBC cut their target price on Netflix from $107.00 to $106.00 and set a “buy” rating on the stock in a research note on Wednesday, January 21st. Benchmark restated a “hold” rating on shares of Netflix in a report on Tuesday, January 13th. Citic Securities decreased their target price on shares of Netflix from $109.00 to $95.00 and set a “hold” rating for the company in a research report on Monday, January 26th. Finally, Piper Sandler reaffirmed a “positive” rating and issued a $103.00 price target (down from $140.00) on shares of Netflix in a report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating and seventeen have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $116.08.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Underlying fundamentals remain a support: Netflix beat January quarter EPS and reported strong revenue growth, giving bulls a narrative that the business can recover if deal risk clears. 3 Reasons to Buy Netflix Stock Now
• Positive Sentiment: Institutional positioning and bullish coverage are treating some of the decline as event-driven; large fund flows and option activity could amplify a rebound if the takeover mess resolves. MarketBeat: Netflix profile & recent activity
• Neutral Sentiment: Regulatory and legal noise persists but so far Netflix calls DOJ activity “ordinary course,” which may limit panic — still, antitrust timing and outcomes remain an open risk to deal certainty. Ordinary Course coverage
• Negative Sentiment: Paramount’s revised offer materially raises the probability Warner Bros. shareholders switch to a higher cash deal (ticking fees + promise to pay Netflix’s breakup fee), directly threatening Netflix’s signed agreement and dampening NFLX sentiment. Paramount sweetens Warner Bros bid
• Negative Sentiment: Activist investor Ancora has built a ~,$200M stake in WBD and is publicly pushing the board to engage with Paramount — increasing pressure, uncertainty and the chance of a contested outcome that could prolong volatility for Netflix. Ancora builds stake, plans to oppose deal
• Negative Sentiment: Insider selling from senior executives (including CEO Gregory Peters and CFO disclosures) has added to short‑term negative sentiment, feeding concerns about valuation or the financing/execution of the takeover. CEO sale SEC filing
• Negative Sentiment: Shares hit a new 52‑week low amid a broader tech sell‑off and persistent analyst caution; with the stock below key moving averages, momentum traders are likely to remain defensive until deal clarity returns. Netflix hits 52-week low

Netflix Price Performance

The company has a quick ratio of 1.19, a current ratio of 1.19 and a debt-to-equity ratio of 0.51. The stock’s 50 day moving average price is $89.68 and its two-hundred day moving average price is $107.56. The stock has a market cap of $320.29 billion, a price-to-earnings ratio of 30.02, a price-to-earnings-growth ratio of 1.46 and a beta of 1.71.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 EPS for the quarter, beating the consensus estimate of $0.55 by $0.01. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The company had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. During the same period in the prior year, the company earned $0.43 earnings per share. The firm’s revenue was up 17.6% on a year-over-year basis. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Equities research analysts forecast that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Institutional Investors Weigh In On Netflix

Hedge funds have recently bought and sold shares of the stock. Brighton Jones LLC grew its position in Netflix by 5.0% during the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after buying an additional 257 shares during the period. Revolve Wealth Partners LLC grew its position in shares of Netflix by 16.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after acquiring an additional 144 shares during the period. Sivia Capital Partners LLC increased its stake in shares of Netflix by 21.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after purchasing an additional 246 shares in the last quarter. Strategic Investment Advisors MI increased its stake in shares of Netflix by 18.9% in the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after purchasing an additional 123 shares in the last quarter. Finally, Acorn Financial Advisory Services Inc. ADV purchased a new position in shares of Netflix in the 2nd quarter valued at about $246,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.