Netflix (NASDAQ:NFLX) Shares Down 3% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX)’s share price dropped 3% during trading on Friday . The stock traded as low as $949.40 and last traded at $947.58. Approximately 1,012,581 shares traded hands during trading, a decline of 71% from the average daily volume of 3,483,888 shares. The stock had previously closed at $976.72.

Analyst Ratings Changes

A number of analysts recently commented on NFLX shares. Macquarie lifted their price target on Netflix from $965.00 to $1,150.00 and gave the stock an “outperform” rating in a report on Wednesday, January 22nd. Citigroup boosted their price target on shares of Netflix from $725.00 to $920.00 and gave the company a “neutral” rating in a research report on Thursday, December 5th. Evercore ISI raised their target price on Netflix from $950.00 to $1,100.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 22nd. Needham & Company LLC boosted their price target on shares of Netflix from $800.00 to $1,150.00 and gave the company a “buy” rating in a research report on Wednesday, January 22nd. Finally, Seaport Res Ptn upgraded shares of Netflix from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, January 15th. Ten investment analysts have rated the stock with a hold rating, twenty-seven have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $1,021.02.

Netflix Stock Performance

The company’s 50 day moving average is $970.22 and its 200-day moving average is $864.96. The company has a market capitalization of $398.96 billion, a P/E ratio of 47.03, a price-to-earnings-growth ratio of 2.12 and a beta of 1.38. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.56.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.20 by $0.07. The firm had revenue of $10.25 billion during 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%. Netflix’s quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.11 EPS. Equities analysts anticipate that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other Netflix news, Chairman Reed Hastings sold 30,485 shares of the business’s stock in a transaction dated 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 completion of the sale, the chairman now directly owns 394 shares in the company, valued at $386,876.48. The trade was a 98.72 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Jeffrey William Karbowski sold 480 shares of the firm’s stock in a transaction that occurred on Tuesday, March 25th. The stock was sold at an average price of $978.18, for a total transaction of $469,526.40. The disclosure for this sale can be found here. In the last quarter, insiders sold 288,583 shares of company stock valued at $279,611,567. Corporate insiders own 1.76% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in NFLX. Nordea Investment Management AB raised its holdings in Netflix by 22.7% in the 4th quarter. Nordea Investment Management AB now owns 848,150 shares of the Internet television network’s stock worth $760,918,000 after purchasing an additional 156,958 shares during the period. First National Trust Co raised its position in shares of Netflix by 1.0% during the fourth quarter. First National Trust Co now owns 1,258 shares of the Internet television network’s stock valued at $1,121,000 after buying an additional 12 shares during the last quarter. Haven Private LLC purchased a new position in shares of Netflix in the fourth quarter worth $733,000. Sigma Planning Corp boosted its position in shares of Netflix by 7.4% during the fourth quarter. Sigma Planning Corp now owns 5,572 shares of the Internet television network’s stock worth $4,966,000 after acquiring an additional 386 shares during the last quarter. Finally, M&T Bank Corp grew its stake in Netflix by 4.2% during the third quarter. M&T Bank Corp now owns 41,946 shares of the Internet television network’s stock valued at $29,751,000 after acquiring an additional 1,684 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

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.