Netflix (NASDAQ:NFLX) Stock Price Down 2.7% – Should You Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) fell 2.7% during trading on Monday. The company traded as low as $68.88 and last traded at $69.23. 43,040,666 shares traded hands during trading, an increase of 1% from the average daily volume of 42,697,652 shares. The stock had previously closed at $71.14.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Deutsche Bank upgraded Netflix to Buy from Hold and set a $95 price target. Although the bank reduced its target from $100 and lowered earnings estimates, it believes the selloff has created a more attractive risk-reward profile. Deutsche Bank highlighted international engagement, Netflix’s global production footprint, platform expansion, and potential AI benefits in advertising and content production. Deutsche Bank Upgrades Netflix to Buy From Hold
• Positive Sentiment: Other bullish analysts argue that Netflix’s scale, broad content library, and international reach provide a durable competitive advantage. Advertising improvements, pricing, subscriber growth, and live programming—including exclusive Japanese WWE rights—could provide additional revenue and engagement catalysts. Bill Ackman also praised Netflix as an “amazing business” with a dominant market position. What Netflix Skeptics Are Getting Wrong
• Neutral Sentiment: Netflix’s upcoming earnings report is becoming the key near-term catalyst. Investors will look for evidence that international viewing growth is translating into retention and revenue, while monitoring advertising revenue, membership trends, pricing, and free cash flow.
• Negative Sentiment: Engagement concerns continue to pressure the stock. Reports point to weaker U.S. viewing, fewer breakout original titles, streaming fatigue, and competition from YouTube. HSBC has a $76 target and Wells Fargo has a $57 target, reflecting fears that revenue growth and advertising monetization may slow as Netflix matures. Netflix Engagement Data

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on the stock. CICC Research cut their price objective on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating for the company in a research report on Tuesday, July 21st. New Street Research raised their target price on Netflix from $96.00 to $102.00 and gave the stock a “neutral” rating in a report on Friday, July 17th. China Intl Cap upgraded Netflix to a “strong-buy” rating in a research report on Tuesday, July 21st. Morgan Stanley reissued an “overweight” rating and set a $90.00 price target (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. Finally, JPMorgan Chase & Co. restated a “buy” rating on shares of Netflix in a research report on Thursday, August 20th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, Netflix presently has an average rating of “Moderate Buy” and an average price target of $95.15.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The firm has a 50-day moving average of $75.79 and a 200-day moving average of $82.73. The stock has a market cap of $292.72 billion, a PE ratio of 22.13, a PEG ratio of 0.97 and a beta of 1.53.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the previous year, the firm earned $0.72 EPS. The firm’s revenue was up 13.4% compared to the same quarter last year. Research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Activity

In related news, CEO Gregory Peters sold 27,312 shares of the firm’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. This trade represents a 18.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider David Hyman sold 5,723 shares of Netflix stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the sale, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 179,045 shares of company stock valued at $13,132,194 in the last quarter. Company insiders own 1.24% of the company’s stock.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently added to or reduced their stakes in the company. Nykredit A S bought a new stake in shares of Netflix in the 2nd quarter worth about $105,697,000. Shepherd Street Advisors LLC bought a new stake in Netflix during the fourth quarter worth approximately $2,216,000. University of Texas Texas AM Investment Management Co. raised its position in Netflix by 798.5% during the fourth quarter. University of Texas Texas AM Investment Management Co. now owns 42,542 shares of the Internet television network’s stock valued at $3,989,000 after purchasing an additional 37,807 shares during the period. Ritholtz Wealth Management lifted its stake in shares of Netflix by 25.0% in the 1st quarter. Ritholtz Wealth Management now owns 106,451 shares of the Internet television network’s stock valued at $10,235,000 after purchasing an additional 21,260 shares during the last quarter. Finally, Natixis Advisors LLC boosted its holdings in shares of Netflix by 797.3% in the 4th quarter. Natixis Advisors LLC now owns 4,989,919 shares of the Internet television network’s stock worth $467,854,000 after purchasing an additional 4,433,837 shares during the period. 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 operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.