Netflix (NASDAQ:NFLX) Shares Down 1.6% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX) dropped 1.6% during mid-day trading on Tuesday . The company traded as low as $1,009.80 and last traded at $1,010.89. Approximately 1,126,179 shares were traded during mid-day trading, a decline of 73% from the average daily volume of 4,246,150 shares. The stock had previously closed at $1,027.60.

Analysts Set New Price Targets

NFLX has been the subject of a number of recent research reports. The Goldman Sachs Group boosted their price objective on shares of Netflix from $850.00 to $960.00 and gave the company a “neutral” rating in a report on Wednesday, January 22nd. Jefferies Financial Group upped their price target on shares of Netflix from $780.00 to $800.00 and gave the stock a “buy” rating in a report on Friday, October 18th. Seaport Res Ptn upgraded shares of Netflix from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, January 15th. Evercore ISI upped their price objective on shares of Netflix from $950.00 to $1,100.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 22nd. Finally, BMO Capital Markets reiterated an “outperform” rating and set a $1,175.00 price objective (up from $1,000.00) on shares of Netflix in a research report on Wednesday, January 22nd. Ten research analysts have rated the stock with a hold rating, twenty-five have given a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $1,021.70.

Netflix Stock Performance

The company has a debt-to-equity ratio of 0.56, a current ratio of 1.22 and a quick ratio of 1.22. The stock has a market capitalization of $432.35 billion, a PE ratio of 50.87, a PEG ratio of 2.11 and a beta of 1.27. The business has a 50 day moving average price of $919.96 and a 200 day moving average price of $795.06.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Tuesday, January 21st. The Internet television network reported $4.27 EPS for the quarter, beating the consensus estimate of $4.20 by $0.07. Netflix had a return on equity of 38.32% and a net margin of 22.34%. The company had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $10.14 billion. During the same period last year, the firm posted $2.11 earnings per share. Netflix’s revenue was up 16.0% compared to the same quarter last year. As a group, equities research analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current year.

Insider Buying and Selling

In other Netflix news, Director Anne M. Sweeney sold 589 shares of the stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $880.00, for a total transaction of $518,320.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gregory K. Peters sold 4,434 shares of the company’s stock in a transaction on Thursday, February 6th. The stock was sold at an average price of $1,015.00, for a total transaction of $4,500,510.00. Following the transaction, the chief executive officer now owns 12,950 shares of the company’s stock, valued at approximately $13,144,250. This represents a 25.51 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 298,870 shares of company stock valued at $285,287,314. 1.76% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

A number of institutional investors and hedge funds have recently modified their holdings of NFLX. RPg Family Wealth Advisory LLC purchased a new position in shares of Netflix during the third quarter worth approximately $25,000. Pathway Financial Advisers LLC increased its holdings in Netflix by 82.4% during the fourth quarter. Pathway Financial Advisers LLC now owns 31 shares of the Internet television network’s stock valued at $27,000 after buying an additional 14 shares during the period. E Fund Management Hong Kong Co. Ltd. increased its holdings in Netflix by 700.0% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock valued at $34,000 after buying an additional 42 shares during the period. Newton One Investments LLC purchased a new position in Netflix during the fourth quarter valued at approximately $34,000. Finally, MidAtlantic Capital Management Inc. purchased a new position in Netflix during the third quarter valued at approximately $37,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.