Netflix (NASDAQ:NFLX) Trading Down 1.4% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX)’s share price traded down 1.4% on Wednesday . The stock traded as low as $87.50 and last traded at $88.09. 23,240,279 shares traded hands during trading, a decline of 49% from the average session volume of 45,816,313 shares. The stock had previously closed at $89.33.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bank of America said Netflix’s ad-supported tier now exceeds 250 million monthly viewers globally, up sharply from 94 million a year ago, suggesting the ad business is scaling faster than expected as Netflix expands live sports and enters new markets. Netflix ad-supported tier tops 250M monthly viewers as sports push deepens
• Positive Sentiment: Analysts are becoming more constructive after Netflix’s recent advertiser presentation, with Wall Street sentiment improving on the back of stronger ad product momentum. Netflix Sentiment Improves After Video Streamer’s Upfront Presentation
• Positive Sentiment: Research from Omdia projects that Amazon, Netflix, and Google could capture half of the rapidly growing $81 billion connected TV advertising market by 2030, reinforcing Netflix’s long-term ad revenue opportunity. Omdia: Amazon, Netflix and Google to Capture Half of $81 Billion CTV Advertising Market by 2030
• Positive Sentiment: Netflix’s partnership with the NFL is drawing attention, with the company set to showcase its platform during five NFL games this year, which could help attract new subscribers and advertisers. Why Netflix and the NFL Could Be a Perfect Match
• Neutral Sentiment: Commentary about Netflix potentially becoming a trillion-dollar company and articles calling it one of the best stocks in Mark Cuban’s portfolio are supportive, but they are mostly valuation-focused rather than new business developments. Is Netflix the Next Trillion-Dollar Company?
• Negative Sentiment: Some recent pieces frame Netflix as “cheap” relative to its historical valuation and debate whether the stock can continue to rerate, which may reflect investor caution after a strong run. Buy, Sell or Hold Netflix at $90?

Analyst Ratings Changes

Several research analysts have recently weighed in on the stock. KeyCorp reiterated an “overweight” rating and set a $115.00 price target (up from $108.00) on shares of Netflix in a research note on Tuesday, April 14th. Daiwa Securities Group lifted their price target on shares of Netflix from $97.00 to $102.00 and gave the stock an “outperform” rating in a research note on Thursday, April 23rd. Wolfe Research reiterated an “outperform” rating and set a $107.00 price target on shares of Netflix in a research note on Friday, April 17th. Phillip Securities lifted their target price on shares of Netflix from $100.00 to $110.00 in a research note on Monday, April 20th. Finally, Piper Sandler restated an “overweight” rating and set a $115.00 target price (up from $103.00) on shares of Netflix in a research note on Friday, April 17th. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Netflix has an average rating of “Moderate Buy” and an average target price of $114.82.

Netflix Stock Performance

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 business’s 50 day moving average is $94.36 and its two-hundred day moving average is $94.50. The company has a market cap of $370.93 billion, a PE ratio of 28.45, a PEG ratio of 1.14 and a beta of 1.55.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.47. Netflix had a net margin of 28.52% and a return on equity of 40.92%. The company had revenue of $12.25 billion for the quarter, compared to analysts’ expectations of $12.17 billion. During the same quarter in the previous year, the company earned $6.61 EPS. Netflix’s revenue for the quarter was up 16.2% on a year-over-year basis. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. On average, equities research analysts anticipate that Netflix, Inc. will post 3.6 EPS for the current year.

Insider Buying and Selling

In other Netflix news, Director Reed Hastings sold 407,550 shares of Netflix stock in a transaction on Friday, May 1st. The shares were sold at an average price of $93.13, for a total value of $37,955,131.50. Following the sale, the director directly owned 3,940 shares in the company, valued at approximately $366,932.20. The trade was a 99.04% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the sale, the chief executive officer owned 284,804 shares in the company, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 1,422,769 shares of company stock worth $135,144,073 in the last 90 days. 1.24% of the stock is owned by company insiders.

Institutional Trading of Netflix

A number of institutional investors and hedge funds have recently bought and sold shares of NFLX. Brighton Jones LLC increased its holdings in Netflix by 5.0% in the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after acquiring an additional 257 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in Netflix by 16.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock valued at $912,000 after acquiring an additional 144 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Netflix by 21.2% in 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 last quarter. Strategic Investment Advisors MI increased its holdings in shares of Netflix by 18.9% in the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock worth $1,036,000 after buying an additional 123 shares during the last quarter. Finally, Schnieders Capital Management LLC. increased its holdings in shares of Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after buying an additional 228 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors.

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.