Netflix (NASDAQ:NFLX) Shares Down 1.1% After Insider Selling

Netflix, Inc. (NASDAQ:NFLX)’s stock price was down 1.1% on Tuesday following insider selling activity. The stock traded as low as $62.60 and last traded at $63.26. 26,820,907 shares were traded during trading, a decline of 37% from the average daily volume of 42,696,727 shares. The stock had previously closed at $63.95.

Specifically, CEO Gregory Peters sold 27,312 shares of the business’s stock in a transaction on Monday, November 9th. The shares were sold at an average price of $63.62, for a total transaction of $1,737,589.44. Following the transaction, the chief executive officer directly owned 119,412 shares in the company, valued at $7,596,991.44. The trade was a 18.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Spencer Neumann sold 9,253 shares of the company’s stock in a transaction dated Wednesday, November 4th. The stock was sold at an average price of $66.15, for a total value of $612,085.95. Following the sale, the chief financial officer owned 73,787 shares of the company’s stock, valued at approximately $4,881,010.05. This trade represents a 11.14% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In related news, CEO Theodore Sarandos sold 27,312 shares of the business’s stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $66.20, for a total transaction of $1,808,054.40. Following the transaction, the chief executive officer owned 178,954 shares of the company’s stock, valued at approximately $11,846,754.80. The trade was a 13.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on NFLX. Deutsche Bank set a $93.00 target price on shares of Netflix in a research note on Wednesday, October 21st. President Capital lowered their price target on shares of Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a research report on Monday, July 20th. Piper Sandler reaffirmed an “overweight” rating and issued a $78.00 price target (down from $85.00) on shares of Netflix in a research note on Wednesday, October 21st. UBS Group set a $90.00 price target on Netflix in a report on Wednesday, October 21st. Finally, China Renaissance reduced their target price on shares of Netflix from $100.00 to $80.00 and set a “hold” rating for the company in a research note on Friday, July 17th. Two investment 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 issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $89.14.

Key Headlines Impacting Netflix

Here are a few of the latest headlines about NFLX:

• Positive Sentiment: Netflix continues to generate substantial cash, and its packed holiday release schedule could help support growth. Those factors may cushion concerns about higher content spending. Article: Will Content Capex Weigh on Netflix’s Free Cash Flow Trajectory?
• Negative Sentiment: Investors are concerned that rising content investment could weigh on Netflix’s free cash flow, even with strong cash generation. The spending may be harder to justify if engagement and growth are slowing. Article: Will Content Capex Weigh on Netflix’s Free Cash Flow Trajectory?
• Negative Sentiment: Commentary highlights slower viewing engagement, competition from YouTube and a costly content strategy as factors testing investor confidence. One report says NFLX has fallen sharply from its 2025 peak, reflecting persistent skepticism about its growth prospects. Article: Netflix Wipes Out Five Years of Gains

Netflix Stock Performance

The company has a 50 day moving average price of $70.00 and a 200-day moving average price of $80.65. 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 company has a market cap of $257.43 billion, a P/E ratio of 18.12, a price-to-earnings-growth ratio of 0.93 and a beta of 1.62.

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

Hedge Funds Weigh In On Netflix

Several hedge funds have recently modified their holdings of the company. Clal Insurance Enterprises Holdings Ltd bought a new stake in Netflix during the second quarter worth $26,000. Pathway Financial Advisers LLC bought a new position in Netflix in the 3rd quarter valued at $26,000. Sawyer & Company Inc purchased a new stake in shares of Netflix during the 3rd quarter valued at $27,000. Compound Global Advisors LLC purchased a new stake in shares of Netflix during the 2nd quarter valued at $29,000. Finally, Burnham & Co LLC bought a new stake in shares of Netflix during the 2nd quarter worth $29,000. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.