Netflix (NASDAQ:NFLX) Stock Price Down 3.6% - Should You Sell?

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price was down 3.6% during mid-day trading on Friday . The stock traded as low as $871.25 and last traded at $873.78. Approximately 2,247,762 shares changed hands during trading, a decline of 32% from the average daily volume of 3,327,983 shares. The stock had previously closed at $906.36.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on NFLX shares. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Netflix from $650.00 to $875.00 and gave the company a "hold" rating in a research report on Wednesday, January 22nd. Bank of America lifted their price objective on shares of Netflix from $1,000.00 to $1,175.00 and gave the company a "buy" rating in a research report on Wednesday, January 22nd. Robert W. Baird lifted their price objective on shares of Netflix from $875.00 to $1,200.00 and gave the company an "outperform" rating in a research report on Wednesday, January 22nd. Barclays upgraded shares of Netflix from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $715.00 to $900.00 in a research report on Wednesday, January 22nd. Finally, Needham & Company LLC lifted their price objective 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. Ten analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, Netflix presently has a consensus rating of "Moderate Buy" and an average price target of $1,021.70.

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Netflix Price Performance

The stock has a market capitalization of $381.18 billion, a PE ratio of 44.94, a price-to-earnings-growth ratio of 2.12 and a beta of 1.38. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 0.56. The stock's 50 day moving average price is $950.26 and its 200-day moving average price is $841.52.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 net margin of 22.34% and a return on equity of 38.32%. The business's revenue was up 16.0% on a year-over-year basis. During the same period in the previous year, the firm earned $2.11 earnings per share. As a group, equities analysts forecast that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Buying and Selling

In related news, insider David A. Hyman sold 41,121 shares of the company's stock in a transaction dated Thursday, January 30th. The shares were sold at an average price of $979.01, for a total value of $40,257,870.21. Following the completion of the sale, 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gregory K. Peters sold 102,228 shares of the company's stock in a transaction dated Thursday, January 30th. The stock was sold at an average price of $980.74, for a total transaction of $100,259,088.72. Following the completion of the sale, the chief executive officer now directly owns 12,950 shares of the company's stock, valued at approximately $12,700,583. This trade represents a 88.76 % decrease in their ownership of the stock. 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 over the last three months. 1.76% of the stock is owned by company insiders.

Institutional Trading of Netflix

A number of hedge funds have recently added to or reduced their stakes in the business. Brown Shipley& Co Ltd bought a new position in Netflix in the fourth quarter worth about $27,000. Pathway Financial Advisers LLC raised its holdings in Netflix by 82.4% in the fourth quarter. Pathway Financial Advisers LLC now owns 31 shares of the Internet television network's stock worth $27,000 after purchasing an additional 14 shares in the last quarter. RPg Family Wealth Advisory LLC bought a new position in Netflix in the third quarter worth about $25,000. Transce3nd LLC bought a new position in Netflix in the fourth quarter worth about $32,000. Finally, Newton One Investments LLC bought a new position in Netflix in the fourth quarter worth about $34,000. 80.93% of the stock is owned by hedge funds and other 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.