Netflix (NASDAQ:NFLX) Stock Price Down 3.1% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX) shares traded down 3.1% on Monday . The stock traded as low as $861.68 and last traded at $863.28. 1,990,818 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 3,348,886 shares. The stock had previously closed at $891.11.

Wall Street Analysts Forecast Growth

NFLX has been the subject of a number of recent analyst reports. BMO Capital Markets reaffirmed an “outperform” rating and set a $1,175.00 target price (up previously from $1,000.00) on shares of Netflix in a research report on Wednesday, January 22nd. Argus boosted their target price on shares of Netflix from $840.00 to $1,040.00 and gave the stock a “buy” rating in a research report on Monday, January 6th. Morgan Stanley raised their price target on Netflix from $1,050.00 to $1,150.00 and gave the company an “overweight” rating in a research report on Wednesday, January 22nd. Citigroup boosted their price objective on Netflix from $725.00 to $920.00 and gave the stock a “neutral” rating in a research report on Thursday, December 5th. Finally, Canaccord Genuity Group raised Netflix from a “hold” rating to a “buy” rating and raised their target price for the company from $940.00 to $1,150.00 in a report on Wednesday, January 22nd. Ten equities research analysts have rated the stock with a hold rating, twenty-five have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $1,014.26.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.22 and a current ratio of 1.22. The company has a fifty day moving average price of $950.26 and a two-hundred day moving average price of $842.54. The company has a market cap of $370.73 billion, a P/E ratio of 43.71, a PEG ratio of 2.12 and a beta of 1.38.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.20 by $0.07. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $10.14 billion. Netflix had a return on equity of 38.32% and a net margin of 22.34%. The business’s quarterly revenue was up 16.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $2.11 EPS. On average, sell-side analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity

In other Netflix news, Chairman Reed Hastings sold 30,485 shares of the firm’s stock in a transaction on Monday, March 3rd. The stock was sold at an average price of $981.92, for a total transaction of $29,933,831.20. Following the transaction, the chairman now owns 394 shares in the company, valued at $386,876.48. This trade represents a 98.72 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Jeffrey William Karbowski sold 480 shares of the firm’s stock in a transaction on Thursday, January 30th. The stock was sold at an average price of $986.75, for a total value of $473,640.00. The disclosure for this sale can be found here. Insiders sold a total of 288,103 shares of company stock valued at $279,142,041 in the last quarter. Company insiders own 1.76% of the company’s stock.

Hedge Funds Weigh In On Netflix

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. RPg Family Wealth Advisory LLC bought a new stake in shares of Netflix during the third quarter worth about $25,000. Pathway Financial Advisers LLC increased its position in Netflix by 82.4% in the 4th quarter. Pathway Financial Advisers LLC now owns 31 shares of the Internet television network’s stock valued at $27,000 after acquiring an additional 14 shares during the period. Brown Shipley& Co Ltd bought a new position in shares of Netflix during the fourth quarter valued at $27,000. Transce3nd LLC acquired a new position in shares of Netflix during the fourth quarter worth $32,000. Finally, Newton One Investments LLC acquired a new stake in Netflix in the fourth quarter valued at $34,000. Institutional investors own 80.93% of the company’s stock.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.