Netflix (NASDAQ:NFLX) Stock Price Down 2% on Insider Selling

Netflix, Inc. (NASDAQ:NFLX) was down 2% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $74.48 and last traded at $74.79. 27,725,329 shares changed hands during trading, a decline of 39% from the average session volume of 45,191,000 shares. The stock had previously closed at $76.29.

Specifically, CFO Spencer Adam Neumann sold 9,248 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Richard N. Barton sold 2,160 shares of the stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $75.10, for a total value of $162,216.00. Following the transaction, the director directly owned 246 shares of the company’s stock, valued at $18,474.60. This trade represents a 89.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of the firm’s stock in a transaction that occurred on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. This trade represents a 18.42% 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.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the company. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a research report on Thursday, May 14th. TD Cowen cut their price objective on Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a report on Friday, July 17th. Stephens assumed coverage on shares of Netflix in a research note on Friday, July 17th. They issued an “overweight” rating for the company. Wells Fargo & Company set a $80.00 target price on shares of Netflix and gave the stock an “equal weight” rating in a report on Friday, July 17th. Finally, Weiss Ratings lowered shares of Netflix from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, June 26th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Netflix currently has an average rating of “Moderate Buy” and an average target price of $103.48.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix said advertising commitments for its 2026–27 U.S. upfront season nearly doubled year over year. The increase signals stronger advertiser demand and supports management’s strategy of making advertising a significant revenue stream, with a previously stated goal of approximately $3 billion in annual ad revenue by 2026. Netflix Wraps Upfront Ad Sales With Commitments Nearly Doubling
• Positive Sentiment: Some investors and commentators view Netflix’s sell-off as a buying opportunity, citing potential earnings catalysts, the scaling advertising business and analyst price targets substantially above current trading levels. Netflix was also named a “Final Trade” on CNBC’s Halftime Report, adding to favorable investor attention. Netflix Is Down 42% From Its High CNBC Final Trades
• Neutral Sentiment: Take-Two Interactive’s CEO said its partnership with Netflix involving the next Grand Theft Auto 6 trailer is not a step toward selling Take-Two to Netflix. The clarification removes buyout speculation but does not materially change Netflix’s operating outlook. Take-Two Is Not Interested in Selling
• Negative Sentiment: A bearish analysis cited sector-wide streaming trends and the risk that Netflix’s advertising offering could cannibalize subscription economics, leading to a downgrade. The concerns challenge whether advertising growth will add incremental value or shift existing users and revenue between tiers. Netflix Downgrade Analysis
• Negative Sentiment: CFO Spencer Adam Neumann sold 9,248 Netflix shares for about $701,000, reducing his direct holdings by 11.14%. Although insider sales can be routine and do not necessarily signal weaker fundamentals, the transaction may weigh modestly on sentiment. Netflix SEC Form 4 Filing

Netflix Stock Performance

The company has a market capitalization of $311.42 billion, a price-to-earnings ratio of 23.54, a PEG ratio of 0.93 and a beta of 1.52. The stock has a 50-day moving average price of $75.13 and a 200-day moving average price of $84.78. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

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

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC raised its position in shares of Netflix by 5.0% in the fourth quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC boosted its holdings 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 worth $912,000 after buying an additional 144 shares during the period. Sivia Capital Partners LLC boosted its holdings in shares of Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after buying an additional 246 shares during the period. Strategic Investment Advisors MI grew its stake in 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 buying an additional 123 shares during the last quarter. Finally, Schnieders Capital Management LLC. raised its holdings in Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock valued at $2,832,000 after acquiring an additional 228 shares during the period. 80.93% of the stock is 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.