Key Points
- Netflix director Reed Hastings sold 386,700 shares on June 1 at an average price of $85.97, totaling about $33.2 million. The sale cut his ownership by nearly 99% and was executed under a pre-arranged 10b5-1 trading plan.
- Netflix stock fell 2.9% to open at $83.33, leaving it well below its 50-day and 200-day moving averages. The shares are also trading closer to the 52-week low than the high.
- The company recently beat earnings expectations, reporting $1.23 EPS on $12.25 billion in revenue for the quarter, while analysts still maintain a Moderate Buy consensus with an average target price of $114.82.
Netflix, Inc. (NASDAQ:NFLX - Get Free Report) Director Reed Hastings sold 386,700 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total value of $33,244,599.00. Following the sale, the director owned 3,940 shares of the company's stock, valued at $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Reed Hastings also recently made the following trade(s):
- On Friday, May 1st, Reed Hastings sold 407,550 shares of Netflix stock. The stock was sold at an average price of $93.13, for a total value of $37,955,131.50.
- On Wednesday, April 1st, Reed Hastings sold 420,550 shares of Netflix stock. The stock was sold at an average price of $95.49, for a total value of $40,158,319.50.
Netflix Trading Down 2.9%
Shares of NASDAQ NFLX opened at $83.33 on Wednesday. Netflix, Inc. has a one year low of $75.01 and a one year high of $134.12. The firm has a market capitalization of $350.89 billion, a PE ratio of 26.92, a PEG ratio of 1.09 and a beta of 1.50. The company has a current ratio of 1.41, a quick ratio of 1.41 and a debt-to-equity ratio of 0.43. The business has a 50-day moving average price of $93.00 and a two-hundred day moving average price of $93.09.
Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 16th. The Internet television network reported $1.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.76 by $0.47. The business had revenue of $12.25 billion during the quarter, compared to analyst estimates of $12.17 billion. Netflix had a return on equity of 40.92% and a net margin of 28.52%.The firm's revenue was up 16.2% on a year-over-year basis. During the same period in the previous year, the company earned $6.61 EPS. Netflix has set its Q2 2026 guidance at 0.780-0.780 EPS. As a group, analysts predict that Netflix, Inc. will post 3.6 earnings per share for the current fiscal year.
Netflix News Roundup
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix continues to expand beyond core streaming, with new live-content initiatives and franchise-based consumer product deals that could create additional revenue streams over time.
- Positive Sentiment: Some analysts view Netflix as attractively priced after the pullback, noting that it is trading closer to its 52-week low while free cash flow guidance has improved and the ad business is scaling.
- Neutral Sentiment: Recent commentary focuses on whether Netflix has shifted from a pure growth story toward a more mature, value-like profile, which could change how investors judge the stock.
- Neutral Sentiment: Media coverage on June streaming lineups may help keep Netflix’s content slate in view, but it is not a clear near-term catalyst on its own.
- Negative Sentiment: Netflix stock has been falling even as the broader market rises, reflecting weaker momentum and investor concerns about its premium valuation relative to recent performance.
- Negative Sentiment: Director Reed Hastings sold 386,700 shares in a pre-arranged 10b5-1 plan, which may add to negative sentiment even though the sale was planned in advance.
Analysts Set New Price Targets
Several equities research analysts have recently issued reports on the company. Erste Group Bank lowered Netflix from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Arete Research upgraded Netflix from a "neutral" rating to a "buy" rating in a report on Friday, February 27th. Piper Sandler reiterated an "overweight" rating and set a $115.00 price target (up from $103.00) on shares of Netflix in a report on Friday, April 17th. Morgan Stanley reiterated an "overweight" rating on shares of Netflix in a report on Friday, April 17th. Finally, Wells Fargo & Company began coverage on Netflix in a research note on Monday, March 9th. They issued an "equal weight" rating and a $105.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating and sixteen have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $114.82.
Get Our Latest Stock Report on NFLX
Institutional Inflows and Outflows
A number of institutional investors have recently made changes to their positions in NFLX. Vanguard Group Inc. raised its stake in shares of Netflix by 912.5% in the 4th quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp increased its position in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC increased its position in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after buying an additional 89,558,684 shares during the period. Capital World Investors increased its position in Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after buying an additional 80,025,890 shares during the period. Finally, Morgan Stanley increased its position in Netflix by 903.0% in the 4th quarter. Morgan Stanley now owns 85,349,973 shares of the Internet television network's stock worth $8,002,414,000 after buying an additional 76,840,318 shares during the period. 80.93% of the stock is owned by institutional investors.
Netflix Company Profile
(
Get Free Report)
Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.
The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.
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