Key Points
- Netflix director Bradford Smith sold 17,980 shares for approximately $1.15 million at an average price of $64.03. The transaction was made under a pre-arranged Rule 10b5-1 plan and reduced his direct ownership by 18.4%.
- Netflix reported quarterly EPS of $0.87, beating estimates of $0.82, while revenue reached $12.87 billion, up 11.9% year over year and in line with forecasts. However, shares traded near their 12-month low and were below both their 50-day and 200-day moving averages.
- Analyst sentiment remained positive but cautious, with Netflix holding a consensus “Moderate Buy” rating and an average price target of $89.14. Several firms lowered price targets or ratings, while institutional investors owned 80.93% of the stock.
Netflix, Inc. (NASDAQ:NFLX - Get Free Report) Director Bradford Smith sold 17,980 shares of the stock in a transaction that occurred on Monday, October 26th. The shares were sold at an average price of $64.03, for a total value of $1,151,259.40. Following the completion of the sale, the director directly owned 79,690 shares of the company's stock, valued at $5,102,550.70. The trade was a 18.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Netflix Trading Down 2.2%
Shares of NFLX opened at $62.52 on Wednesday. The firm has a market cap of $256.73 billion, a PE ratio of 18.07 and a beta of 1.62. The company's 50 day simple moving average is $73.71 and its 200-day simple moving average is $81.99. Netflix, Inc. has a 12-month low of $62.48 and a 12-month high of $116.73.
Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.82 by $0.05. The business had revenue of $12.87 billion during the quarter, compared to analyst estimates of $12.87 billion. During the same period in the previous year, the firm earned $0.59 earnings per share. The business's revenue was up 11.9% compared to the same quarter last year. As a group, equities research analysts forecast that Netflix, Inc. will post 3.59 EPS for the current fiscal year.
Institutional Investors Weigh In On Netflix
Several hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Netflix in the 2nd quarter valued at $24,902,221,000. Bank of New York Mellon Corp acquired a new position in Netflix in the 2nd quarter valued at $1,906,482,000. Legal & General Group Plc purchased a new position in Netflix during the 2nd quarter worth $1,886,526,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Netflix during the 2nd quarter worth $1,481,303,000. Finally, Assenagon Asset Management S.A. raised its position in Netflix by 194.9% during the 3rd quarter. Assenagon Asset Management S.A. now owns 16,111,438 shares of the Internet television network's stock worth $1,121,034,000 after buying an additional 10,647,803 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.
Wall Street Analysts Forecast Growth
A number of research firms have commented on NFLX. Piper Sandler restated an "overweight" rating and issued a $78.00 price objective (down from $85.00) on shares of Netflix in a research note on Wednesday, October 21st. Wedbush reduced their target price on shares of Netflix from $105.00 to $90.00 and set an "outperform" rating for the company in a report on Friday, October 16th. Barclays set a $65.00 target price on shares of Netflix and gave the stock an "equal weight" rating in a research note on Wednesday, October 21st. BMO Capital Markets reiterated an "outperform" rating and set a $125.00 target price (down from $135.00) on shares of Netflix in a research note on Friday, October 16th. Finally, Wolfe Research lowered Netflix from an "outperform" rating to a "peer perform" rating in a report on Thursday, October 22nd. Two investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, seventeen have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Netflix presently has a consensus rating of "Moderate Buy" and an average price target of $89.14.
View Our Latest Analysis on NFLX
More Netflix News
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix exceeded third-quarter earnings expectations, reporting $0.87 in EPS versus the $0.82 consensus estimate. Revenue of $12.87 billion matched forecasts and increased 11.9% year over year. Record margins and improving economics provide fundamental support for the shares. Netflix Just Posted a Record Margin. So Why Is Wall Street Panicking?
- Positive Sentiment: Some research argues that Netflix’s wider margins, international revenue growth and disciplined economics could create a long-term opportunity, even as near-term engagement metrics weaken. Netflix: Not Winning On Attention, Winning On Economics
- Neutral Sentiment: Director Bradford Smith sold 17,980 shares for approximately $1.15 million under a pre-arranged Rule 10b5-1 trading plan. The sale reduces his holdings by 18.4%, but the planned nature of the transaction limits its significance as a signal about management’s outlook. Netflix Director SEC Filing
- Negative Sentiment: The main catalyst for the selloff is weak fourth-quarter revenue guidance and an implied full-year growth rate of roughly 13%. Investors viewed the outlook as insufficient despite the EPS beat, while Netflix also reduced its 2026 advertising-revenue outlook to approximately $2 billion.
- Negative Sentiment: Concerns that Netflix is losing watch-hour share and cultural relevance have raised questions about its ability to sustain subscriber engagement in its mature U.S. market. Management acknowledged that U.S. engagement can improve, adding to worries about competition from short-form video and artificial intelligence. Netflix Stock Falls on Report That Viewers Watch Less
- Negative Sentiment: Wall Street analysts have lowered their assessments, with Needham moving Netflix to Hold, Wolfe Research to Peer Perform, and UBS, Piper Sandler and Rosenblatt trimming price targets. The downgrades reinforce the view that the stock’s prior valuation assumed faster growth. Needham Downgrades Netflix
Netflix Company Profile
(
Get Free Report)
Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.
The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.
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