Netflix (NASDAQ:NFLX) Stock Falls 3.3% on Insider Selling

Shares of Netflix, Inc. (NASDAQ:NFLX) dropped 3.3% during mid-day trading on Friday following insider selling activity. The stock traded as low as $63.31 and last traded at $63.41. 35,255,154 shares changed hands during trading, a decline of 18% from the average session volume of 42,795,762 shares. The stock had previously closed at $65.56.

Specifically, CFO Spencer Neumann sold 9,253 shares of the firm’s stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $66.15, for a total value of $612,085.95. Following the transaction, the chief financial officer directly 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore Sarandos sold 27,312 shares of the business’s stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $66.20, for a total value of $1,808,054.40. Following the completion of the sale, the chief executive officer owned 178,954 shares of the company’s stock, valued at approximately $11,846,754.80. This trade represents a 13.24% 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. In other Netflix news, insider David Hyman sold 5,727 shares of the company’s stock in a transaction that occurred on Wednesday, November 4th. The stock was sold at an average price of $64.55, for a total transaction of $369,677.85. Following the completion of the sale, the insider owned 166,100 shares of the company’s stock, valued at $10,721,755. This represents a 3.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analysts Set New Price Targets

NFLX has been the topic of a number of recent analyst reports. KeyCorp dropped their price target on shares of Netflix from $92.00 to $85.00 and set an “overweight” rating on the stock in a research report on Tuesday, October 13th. President Capital decreased their price objective on shares of Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a report on Monday, July 20th. China Renaissance lowered their target price on shares of Netflix from $100.00 to $80.00 and set a “hold” rating on the stock in a research note on Friday, July 17th. Needham & Company LLC downgraded shares of Netflix from a “buy” rating to a “hold” rating in a report on Wednesday, October 21st. Finally, Morgan Stanley set a $77.00 target price on shares of Netflix and gave the stock an “overweight” rating in a report on Wednesday, October 21st. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, seventeen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $89.14.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix ordered the live-action Stranger Things prequel Other Worlds as a series. The new project could extend a popular franchise and support viewer engagement, though any financial benefit is likely to depend on its eventual release and audience response. Article: Stranger Things prequel announced
• Positive Sentiment: A valuation analysis argues Netflix shares look inexpensive and estimates about 23% upside to fair value. This is a bullish opinion, not a company forecast or guarantee. Article: Netflix stock looks cheap
• Neutral Sentiment: CEO Ted Sarandos and CFO Spencer Neumann disclosed share sales; the reported transactions were to cover tax withholding on vested equity awards. That stated purpose makes them less direct evidence of a negative view of Netflix’s prospects. Article: Netflix insider share sale
• Negative Sentiment: Coverage noted NFLX slipped despite the new franchise plans. That suggests the announcement has not overcome broader caution: one report says the shares are down 40.2% over the past year, while the supplied market data places them near their 52-week low and below their 50- and 200-day averages. Article: Netflix slips despite new Stranger Things plans

Netflix Trading Down 3.3%

The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.07 and a current ratio of 1.07. The company has a 50-day simple moving average of $71.36 and a 200 day simple moving average of $81.09. The company has a market capitalization of $260.38 billion, a P/E ratio of 18.33, a P/E/G ratio of 0.97 and a beta of 1.62.

Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 earnings per share (EPS) for the quarter, topping the consensus estimate 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 for the quarter, compared to the consensus estimate of $12.87 billion. During the same quarter last year, the company posted $0.59 earnings per share. Netflix’s quarterly revenue was up 11.9% on a year-over-year basis. Sell-side analysts expect that Netflix, Inc. will post 3.59 earnings per share for the current year.

Institutional Trading of Netflix

A number of hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in Netflix in the 2nd quarter valued at approximately $24,902,221,000. Bank of New York Mellon Corp bought a new stake in shares of Netflix in the 2nd quarter worth approximately $1,906,482,000. Legal & General Group Plc bought a new stake in shares of Netflix in the 2nd quarter worth approximately $1,886,526,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Netflix during the 2nd quarter worth approximately $1,481,303,000. Finally, Assenagon Asset Management S.A. grew its holdings in shares of Netflix by 194.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 16,111,438 shares of the Internet television network’s stock worth $1,121,034,000 after purchasing an additional 10,647,803 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

About Netflix

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.