Netflix (NASDAQ:NFLX) Shares Down 3.1% – Time to Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) dropped 3.1% during mid-day trading on Thursday . The company traded as low as $90.78 and last traded at $91.74. Approximately 39,441,308 shares were traded during trading, a decline of 22% from the average daily volume of 50,749,570 shares. The stock had previously closed at $94.70.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: TV personality/market commentator Jim Cramer reiterated a buy-tilting stance — advising investors to “buy some here, buy some a little bit lower,” which can support retail momentum and short-term investor confidence. Jim Cramer on Netflix
• Positive Sentiment: Market response to Netflix walking away from its bid for Warner Bros. assets has been upbeat — reports note a strong near-term rally and at least one bank (Citi) turning bullish, arguing the move preserves capital and simplifies execution risk. That narrative supports multiple analysts raising targets and buyer interest. Netflix Stock Surges After Walking Away From Warner Deal
• Positive Sentiment: Content partnerships: Netflix signed an exclusive multi‑year documentary deal with Warner Music Group to mine WMG’s artist catalog for films/series — a steady stream of premium, exclusive music-related content could lift engagement and differentiate the service. Netflix, Warner Music deal
• Positive Sentiment: Live events strategy: Netflix is pushing into live K‑pop events (notably the BTS comeback livestream) and sees more opportunity in Korea — if monetized successfully these events can add new revenue streams and global engagement spikes. Netflix sees more prospects for live events
• Neutral Sentiment: New programming: Netflix and Higher Ground/Obamas are producing an eight-episode series about the FTX collapse — high-profile nonfiction can draw viewers but may also court controversy; content upside is balanced by reputational risk. Netflix FTX series
• Negative Sentiment: Operational worries: several outlets flagged slowing paid-subscriber growth (markedly weaker YoY) and a planned increase in 2026 content spending — the combination raises concerns about near-term margin pressure and execution on content ROI. Subscriber growth stalls
• Negative Sentiment: Volatility & valuation questions: commentary and headlines show recent big swings (both rallies and pullbacks), with some analysts highlighting mixed signals on valuation and the stock falling more steeply than the market on certain days — this keeps risk premia elevated. Netflix falls more steeply than market

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on NFLX shares. Citigroup began coverage on Netflix in a research note on Wednesday. They set a “buy” rating and a $115.00 target price on the stock. Rothschild & Co Redburn set a $120.00 price target on Netflix in a report on Wednesday, January 21st. New Street Research dropped their price target on Netflix from $100.00 to $96.00 and set a “neutral” rating on the stock in a research note on Thursday, January 22nd. Robert W. Baird decreased their price objective on shares of Netflix from $150.00 to $120.00 and set an “outperform” rating for the company in a research report on Friday, January 23rd. Finally, Jefferies Financial Group reiterated a “buy” rating on shares of Netflix in a research note on Friday, February 27th. Two analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating and thirteen have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $114.35.

Netflix Trading Up 0.1%

The stock has a market cap of $387.68 billion, a PE ratio of 36.34, a PEG ratio of 1.41 and a beta of 1.68. The company’s fifty day moving average is $86.87 and its 200-day moving average is $101.82. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.19 and a quick ratio of 1.19.

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. The company had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The firm’s revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.43 earnings per share. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. On average, analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In related news, CFO Spencer Adam Neumann sold 57,260 shares of Netflix stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $95.50, for a total transaction of $5,468,330.00. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $7,046,658.50. This trade represents a 43.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 value of $2,065,210.29. Following the completion of the sale, the insider owned 316,100 shares in the company, valued at approximately $27,851,571. This represents a 6.90% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 1,520,133 shares of company stock valued at $137,259,786 in the last 90 days. 1.37% of the stock is currently owned by corporate insiders.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Netflix by 0.4% during the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network’s stock worth $46,183,983,000 after purchasing an additional 142,238 shares during the period. CIBC Capital Markets Europe S.A. lifted its position in Netflix by 171.4% in the third quarter. CIBC Capital Markets Europe S.A. now owns 66,503 shares of the Internet television network’s stock valued at $79,732,000 after buying an additional 42,000 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its stake in Netflix by 6.6% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 302,182 shares of the Internet television network’s stock worth $362,292,000 after buying an additional 18,837 shares during the period. NEOS Investment Management LLC boosted its stake in Netflix by 64.6% during the third quarter. NEOS Investment Management LLC now owns 177,297 shares of the Internet television network’s stock worth $212,565,000 after buying an additional 69,570 shares during the period. Finally, Bornite Capital Management LP acquired a new stake in shares of Netflix during the third quarter valued at about $29,973,000. Institutional investors and hedge funds 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.