Netflix (NASDAQ:NFLX) Trading Down 1.2% - Should You Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) dropped 1.2% during trading on Thursday . The company traded as low as $897.00 and last traded at $908.30. Approximately 1,544,034 shares were traded during trading, a decline of 55% from the average daily volume of 3,395,649 shares. The stock had previously closed at $919.68.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Evercore ISI increased their price objective on shares of Netflix from $950.00 to $1,100.00 and gave the company an "outperform" rating in a research report on Wednesday, January 22nd. Needham & Company LLC raised their price objective on shares of Netflix from $800.00 to $1,150.00 and gave the stock a "buy" rating in a research report on Wednesday, January 22nd. Wolfe Research raised Netflix from a "peer perform" rating to an "outperform" rating and set a $1,100.00 target price on the stock in a research report on Thursday, January 23rd. Piper Sandler reissued an "overweight" rating and set a $1,100.00 price target (up from $950.00) on shares of Netflix in a report on Wednesday, January 22nd. Finally, Morgan Stanley boosted their price target on Netflix from $1,050.00 to $1,150.00 and gave the company an "overweight" rating in a research note on Wednesday, January 22nd. Ten equities research analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and an average price target of $1,014.26.

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Netflix Trading Down 2.6 %

The stock has a market cap of $383.12 billion, a P/E ratio of 45.23, a price-to-earnings-growth ratio of 2.12 and a beta of 1.38. 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 firm's fifty day simple moving average is $950.23 and its 200-day simple moving average is $845.78.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $10.14 billion. During the same quarter last year, the firm earned $2.11 earnings per share. Netflix's quarterly revenue was up 16.0% on a year-over-year basis. Equities research analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider David A. Hyman sold 41,121 shares of the stock in a transaction on Thursday, January 30th. The shares were sold at an average price of $979.01, for a total transaction of $40,257,870.21. Following the transaction, the insider now directly owns 31,610 shares of the company's stock, valued at $30,946,506.10. This represents a 56.54 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Reed Hastings sold 35,868 shares of Netflix stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $888.08, for a total transaction of $31,853,653.44. Following the completion of the sale, the chairman now directly owns 114 shares of the company's stock, valued at approximately $101,241.12. This trade represents a 99.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 288,103 shares of company stock worth $279,142,041. 1.76% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Several large investors have recently made changes to their positions in NFLX. West Michigan Advisors LLC grew its stake in Netflix by 1.3% in the fourth quarter. West Michigan Advisors LLC now owns 776 shares of the Internet television network's stock valued at $692,000 after acquiring an additional 10 shares during the period. Warwick Investment Management Inc. grew its position in Netflix by 3.5% in the 4th quarter. Warwick Investment Management Inc. now owns 298 shares of the Internet television network's stock valued at $266,000 after purchasing an additional 10 shares during the period. MRP Capital Investments LLC increased its stake in Netflix by 1.0% during the 4th quarter. MRP Capital Investments LLC now owns 1,052 shares of the Internet television network's stock valued at $938,000 after purchasing an additional 10 shares in the last quarter. Bedell Frazier Investment Counselling LLC raised its holdings in Netflix by 2.2% during the fourth quarter. Bedell Frazier Investment Counselling LLC now owns 462 shares of the Internet television network's stock worth $412,000 after buying an additional 10 shares during the last quarter. Finally, Mission Creek Capital Partners Inc. raised its holdings in Netflix by 0.3% during the fourth quarter. Mission Creek Capital Partners Inc. now owns 3,826 shares of the Internet television network's stock worth $3,410,000 after buying an additional 10 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.

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