Netflix (NASDAQ:NFLX) Insider David Hyman Sells 5,723 Shares

Netflix, Inc. (NASDAQ:NFLX) insider David Hyman sold 5,723 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the transaction, the insider owned 316,100 shares of the company’s stock, valued at approximately $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Netflix Stock Up 0.3%

NFLX stock opened at $73.57 on Wednesday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a 50 day simple moving average of $76.08 and a 200-day simple moving average of $85.15. The company has a market capitalization of $306.34 billion, a P/E ratio of 23.16, a PEG ratio of 0.92 and a beta of 1.52. Netflix, Inc. has a twelve month low of $65.08 and a twelve month high of $126.71.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the prior year, the company posted $0.72 earnings per share. The firm’s quarterly revenue was up 13.4% on a year-over-year basis. On average, equities research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BIP Wealth LLC acquired a new position in Netflix during the 2nd quarter valued at approximately $1,482,000. Phillips Financial Management LLC acquired a new stake in Netflix in the second quarter worth $374,000. Compound Global Advisors LLC acquired a new stake in Netflix in the second quarter worth $29,000. Trifecta Capital Advisors LLC bought a new stake in Netflix in the second quarter valued at $4,207,000. Finally, Next Capital Management LLC bought a new stake in Netflix in the second quarter valued at $386,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have recently commented on NFLX. New Street Research increased their price target on shares of Netflix from $96.00 to $102.00 in a research report on Friday, April 17th. Guggenheim set a $75.00 price objective on Netflix and gave the company a “buy” rating in a research note on Friday, July 17th. Morgan Stanley reiterated an “overweight” rating and issued a $90.00 target price (down from $115.00) on shares of Netflix in a research report on Tuesday, July 14th. Bank of America reissued a “buy” rating and set a $125.00 price target on shares of Netflix in a research report on Monday, May 18th. Finally, CLSA began coverage on Netflix in a research note on Monday, July 20th. They set an “outperform” rating on the stock. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $103.48.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s cloud-gaming initiative is showing strong early traction: monthly players have increased 11-fold since October, potentially creating a new engagement and growth engine beyond traditional streaming and mobile games. Can NFLX Stock Compound Its Way Higher?
• Positive Sentiment: Some analysts and investors view NFLX as increasingly attractive after its recent decline, citing Netflix’s scale, brand strength, content library and competitive moat. Longer-term shareholder returns also remain positive despite recent weakness. NFLX Stock Looks Attractive Even as Growth Slows Rivals’ Loss Signals Netflix’s Strong Moat
• Positive Sentiment: Commentary on Netflix’s buybacks and business economics provides potential valuation support, particularly with the shares trading well below their 52-week high and at a lower earnings multiple than earlier in the year. Netflix’s Stock Buybacks: History & Impact Explained
• Neutral Sentiment: Netflix’s latest reported quarter slightly exceeded earnings expectations, but revenue was just below consensus. Sales still grew 13.4% year over year, indicating continued expansion while also confirming that growth is moderating.
• Negative Sentiment: Wall Street is concerned that Netflix may have an engagement problem, especially as the company releases less viewing and engagement data. Reduced transparency could make it harder for investors to evaluate content performance and user momentum. Wall Street Is Worried Netflix Has an Engagement Problem
• Negative Sentiment: YouTube Premium’s planned bundle with Peacock and NBCUniversal sports highlights the growing competition for streaming subscribers, viewing time and entertainment budgets. This could pressure Netflix’s perceived growth rate and valuation. Is YouTube Going After Netflix?

Netflix Company Profile

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.