Netflix (NASDAQ:NFLX) Shares Down 1.8% – Should You Sell?

Netflix, Inc. (NASDAQ:NFLX) dropped 1.8% during trading on Tuesday . The stock traded as low as $948.21 and last traded at $956.39. Approximately 1,326,733 shares traded hands during trading, a decline of 60% from the average daily volume of 3,297,375 shares. The stock had previously closed at $973.70.

Analysts Set New Price Targets

Several brokerages have recently commented on NFLX. Guggenheim boosted their price target on Netflix from $950.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Wednesday, January 22nd. Arete Research raised shares of Netflix to a “hold” rating in a research report on Thursday, January 23rd. Evercore ISI increased their target price on Netflix from $950.00 to $1,100.00 and gave the stock an “outperform” rating in a research report on Wednesday, January 22nd. Morgan Stanley lifted their price target on shares of Netflix from $1,050.00 to $1,150.00 and gave the company an “overweight” rating in a report on Wednesday, January 22nd. Finally, Citigroup boosted their target price on Netflix from $725.00 to $920.00 and gave the stock a “neutral” rating in a report on Thursday, December 5th. Ten research analysts have rated the stock with a hold rating, twenty-five have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $1,021.70.

Netflix Stock 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 stock has a 50 day moving average of $948.96 and a 200 day moving average of $835.48. The stock has a market capitalization of $416.03 billion, a P/E ratio of 49.05, a P/E/G ratio of 2.12 and a beta of 1.27.

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

Insider Buying and Selling at Netflix

In other news, Chairman Reed Hastings sold 35,868 shares of the stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $888.08, for a total value of $31,853,653.44. Following the completion of the transaction, the chairman now directly owns 114 shares in the company, valued at $101,241.12. This trade represents a 99.68 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Ann Mather sold 2,682 shares of the stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $973.00, for a total value of $2,609,586.00. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 255,017 shares of company stock worth $246,653,898. 1.76% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NFLX. Brown Shipley& Co Ltd acquired a new stake in shares of Netflix during the 4th quarter valued at $27,000. Pathway Financial Advisers LLC raised its holdings in Netflix by 82.4% during the 4th quarter. Pathway Financial Advisers LLC now owns 31 shares of the Internet television network’s stock worth $27,000 after buying an additional 14 shares during the period. RPg Family Wealth Advisory LLC purchased a new stake in Netflix during the third quarter valued at about $25,000. Transce3nd LLC acquired a new position in shares of Netflix in the fourth quarter worth about $32,000. Finally, Newton One Investments LLC purchased a new position in shares of Netflix in the fourth quarter worth approximately $34,000. Institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

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.