Netflix (NASDAQ:NFLX) Stock Price Down 3.6% – Time to Sell?

Netflix, Inc. (NASDAQ:NFLX) shares fell 3.6% during trading on Tuesday . The stock traded as low as $77.71 and last traded at $78.72. 64,548,341 shares changed hands during mid-day trading, an increase of 46% from the average session volume of 44,145,871 shares. The stock had previously closed at $81.67.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix reportedly lost a bidding contest for Roku after Fox agreed to buy the streaming platform in a $22 billion deal, raising concerns that Netflix may be left weaker in the race for distribution, ad-supported viewing, and connected-TV reach. Why Fox-Roku deal is hitting Netflix stock today
• Negative Sentiment: Reports that Netflix also lost out on Warner Bros. Discovery are fueling a broader narrative that the company is being outbid on key content/library assets, which could limit long-term growth and strategic expansion. Netflix (NFLX) Has Lost Out on Another Big Acquisition and Its Stock Is Being Punished
• Negative Sentiment: Lionsgate Studios shares jumped on speculation that Netflix could pursue a takeover, but the rumor also underscores that Netflix may need to buy growth rather than rely only on organic expansion, which can create uncertainty around capital allocation. Lionsgate Studios Stock (LION) Soars on Netflix Acquisition Interest

Analyst Upgrades and Downgrades

Several brokerages recently commented on NFLX. President Capital lifted their target price on shares of Netflix from $133.00 to $134.00 and gave the stock a “buy” rating in a report on Tuesday, March 31st. Seaport Research Partners lifted their target price on shares of Netflix from $115.00 to $119.00 and gave the stock a “buy” rating in a report on Friday, April 17th. Wolfe Research reiterated an “outperform” rating and issued a $107.00 target price on shares of Netflix in a report on Friday, April 17th. Morgan Stanley reiterated an “overweight” rating on shares of Netflix in a report on Friday, April 17th. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on shares of Netflix from $98.00 to $100.00 and gave the stock a “hold” rating in a report on Tuesday, April 14th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating and sixteen have assigned a Hold rating to the company. According to data from MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and a consensus target price of $114.39.

Netflix Trading Down 3.6%

The company’s fifty day moving average price is $90.59 and its two-hundred day moving average price is $90.84. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The firm has a market cap of $331.56 billion, a P/E ratio of 25.43, a price-to-earnings-growth ratio of 1.02 and a beta of 1.50.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The business had revenue of $12.25 billion for the quarter, compared to analyst estimates of $12.17 billion. During the same quarter in the prior year, the firm earned $6.61 EPS. The firm’s quarterly revenue was up 16.2% compared to the same quarter last year. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, sell-side analysts predict that Netflix, Inc. will post 3.6 EPS for the current fiscal year.

Insiders Place Their Bets

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at $6,563,353.65. This represents a 11.14% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.69, for a total transaction of $2,422,301.28. Following the sale, the chief executive officer directly owned 120,931 shares in the company, valued at approximately $10,725,370.39. This represents a 18.42% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,313,029 shares of company stock worth $120,315,776 in the last quarter. 1.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

A number of hedge funds have recently added to or reduced their stakes in NFLX. Brighton Jones LLC lifted its holdings 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 worth $4,804,000 after acquiring an additional 257 shares during the last quarter. Revolve Wealth Partners LLC lifted its holdings in shares of Netflix by 16.4% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after acquiring an additional 144 shares during the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock worth $1,883,000 after acquiring an additional 246 shares during the last quarter. Strategic Investment Advisors MI lifted its holdings in shares of Netflix by 18.9% in the second quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock worth $1,036,000 after acquiring an additional 123 shares during the last quarter. Finally, Schnieders Capital Management LLC. lifted its holdings in shares of Netflix by 12.1% in the second quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after acquiring an additional 228 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

About Netflix

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.