Netflix (NASDAQ:NFLX) Shares Down 3% – Here’s Why

Shares of Netflix, Inc. (NASDAQ:NFLX) traded down 3% during trading on Friday . The stock traded as low as $949.40 and last traded at $947.58. Approximately 1,012,581 shares were traded during trading, a decline of 71% from the average daily volume of 3,483,888 shares. The stock had previously closed at $976.72.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on NFLX. Citigroup upped their price objective on shares of Netflix from $725.00 to $920.00 and gave the company a “neutral” rating in a research note on Thursday, December 5th. Robert W. Baird raised their price objective on Netflix from $875.00 to $1,200.00 and gave the company an “outperform” rating in a research note on Wednesday, January 22nd. Bank of America lifted their price objective on Netflix from $1,000.00 to $1,175.00 and gave the stock a “buy” rating in a report on Wednesday, January 22nd. Macquarie increased their target price on Netflix from $965.00 to $1,150.00 and gave the company an “outperform” rating in a report on Wednesday, January 22nd. Finally, BMO Capital Markets reaffirmed an “outperform” rating and issued a $1,175.00 price target (up from $1,000.00) on shares of Netflix in a research note on Wednesday, January 22nd. Ten equities research analysts have rated the stock with a hold rating, twenty-seven have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,021.02.

Netflix Trading Down 4.4 %

The stock has a 50-day moving average of $971.74 and a two-hundred day moving average of $868.10. The company has a market cap of $399.46 billion, a P/E ratio of 47.09, a price-to-earnings-growth ratio of 2.12 and a beta of 1.38. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.22 and a current ratio of 1.22.

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

Insider Transactions at Netflix

In other Netflix news, Director Ann Mather sold 2,682 shares of the business’s stock in a transaction dated Monday, February 3rd. The stock was sold at an average price of $973.00, for a total value of $2,609,586.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Richard N. Barton sold 6,364 shares of the firm’s stock in a transaction dated Tuesday, January 7th. The shares were sold at an average price of $879.38, for a total transaction of $5,596,374.32. Following the sale, the director now directly owns 246 shares in the company, valued at approximately $216,327.48. The trade was a 96.28 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 288,583 shares of company stock worth $279,611,567. Corporate insiders own 1.76% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NFLX. Principal Financial Group Inc. increased its position in Netflix by 13.3% during the third quarter. Principal Financial Group Inc. now owns 1,692,563 shares of the Internet television network’s stock valued at $1,200,485,000 after acquiring an additional 198,148 shares during the last quarter. Fiduciary Trust Co increased its position in shares of Netflix by 12.7% during the 3rd quarter. Fiduciary Trust Co now owns 3,010 shares of the Internet television network’s stock valued at $2,135,000 after purchasing an additional 339 shares during the last quarter. Martingale Asset Management L P lifted its stake in shares of Netflix by 322.3% in the 3rd quarter. Martingale Asset Management L P now owns 4,438 shares of the Internet television network’s stock worth $3,148,000 after purchasing an additional 3,387 shares during the period. Circle Wealth Management LLC increased its stake in shares of Netflix by 26.3% in the 3rd quarter. Circle Wealth Management LLC now owns 7,098 shares of the Internet television network’s stock worth $5,034,000 after purchasing an additional 1,480 shares in the last quarter. Finally, Caisse DE Depot ET Placement DU Quebec raised its holdings in Netflix by 2.2% in the 3rd quarter. Caisse DE Depot ET Placement DU Quebec now owns 328,982 shares of the Internet television network’s stock worth $233,337,000 after purchasing an additional 7,127 shares during the period. 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.