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

Shares of Netflix, Inc. (NASDAQ:NFLX) traded down 2.2% on Tuesday after an insider sold shares in the company. The company traded as low as $62.48 and last traded at $62.52. Approximately 48,322,781 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 42,738,805 shares. The stock had previously closed at $63.90.

Specifically, Director Bradford Smith sold 17,980 shares of the company’s stock in a transaction on Monday, October 26th. The stock was sold at an average price of $64.03, for a total value of $1,151,259.40. Following the completion of the sale, the director directly owned 79,690 shares in the company, valued at approximately $5,102,550.70. This represents a 18.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Piper Sandler restated an “overweight” rating and set a $78.00 price target (down from $85.00) on shares of Netflix in a research note on Wednesday, October 21st. Robert W. Baird set a $90.00 price objective on shares of Netflix and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. CLSA assumed coverage on shares of Netflix in a report on Monday, July 20th. They set an “outperform” rating on the stock. The Goldman Sachs Group set a $84.00 target price on shares of Netflix in a research report on Wednesday, October 21st. Finally, Sanford C. Bernstein restated an “outperform” rating and issued a $80.00 price target (down from $95.00) on shares of Netflix in a report on Wednesday, October 21st. Two research analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, seventeen have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $89.59.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q3 results exceeded expectations. Netflix beat consensus earnings estimates, reporting $0.87 per share versus $0.82 expected. Revenue of $12.87 billion was in line with forecasts and increased 11.9% year over year, while margins reportedly reached a record level. Netflix Just Posted a Record Margin
• Positive Sentiment: Profitability remains a strength. Analysts and investors note that Netflix’s margins have widened and that its subscription business continues to generate substantial economics, potentially providing support if management can improve engagement and sustain international growth. Netflix: Not Winning On Attention, Winning On Economics
• Neutral Sentiment: Investors are watching international revenue and the advertising business. International markets remain important to Netflix’s growth outlook, while the company’s advertising strategy could become a larger contributor over time. However, recent commentary indicates the 2026 advertising-revenue outlook was reduced to approximately $2 billion. International Revenue Trends
• Negative Sentiment: Forward guidance disappointed. Netflix’s fourth-quarter revenue outlook came in below Wall Street expectations, implying roughly 13% annual revenue growth. The slower pace overshadowed the Q3 earnings beat and led UBS, Piper Sandler and Rosenblatt to reduce price targets. Netflix Is Making Big Changes
• Negative Sentiment: Engagement and market-share concerns are driving the selling. Reports that viewers are watching less, particularly in the mature U.S. market, have raised concerns about competition from short-form video, artificial intelligence and rival streaming services. Analysts also point to Netflix losing share of total watch hours despite strong financial results. Why Wall Street Is Worried
• Negative Sentiment: Analyst sentiment has weakened. Needham downgraded Netflix to Hold and Wolfe Research lowered its rating to Peer Perform from Outperform. The downgrades reinforce concerns that the stock’s previous valuation assumed stronger growth than the company is currently delivering. Needham Downgrades Netflix

Netflix Stock Performance

The business’s 50-day moving average price is $74.27 and its 200-day moving average price is $82.27. 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 cap of $256.73 billion, a PE ratio of 18.07, a P/E/G ratio of 0.96 and a beta of 1.62.

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

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. acquired a new stake in shares of Netflix in the 2nd quarter worth $24,902,221,000. State Street Corp increased its position in Netflix by 4.9% during the 2nd quarter. State Street Corp now owns 180,129,582 shares of the Internet television network’s stock valued at $12,861,252,000 after buying an additional 8,474,820 shares in the last quarter. Bank of America Corp DE increased its position in Netflix by 4.3% during the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock valued at $5,571,201,000 after buying an additional 2,376,349 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Netflix during the 2nd quarter valued at about $1,906,482,000. Finally, Legal & General Group Plc purchased a new stake in Netflix in the second quarter valued at about $1,886,526,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.