Netflix (NASDAQ:NFLX) Shares Down 4.3% on Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s share price traded down 4.3% during trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $1,010.00 to $1,000.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Netflix traded as low as $835.11 and last traded at $837.36. 1,584,633 shares traded hands during mid-day trading, a decline of 37% from the average session volume of 2,516,036 shares. The stock had previously closed at $875.00.

NFLX has been the subject of a number of other research reports. UBS Group boosted their price objective on shares of Netflix from $825.00 to $1,040.00 and gave the company a “buy” rating in a research report on Thursday, December 19th. TD Cowen increased their price target on Netflix from $820.00 to $835.00 and gave the stock a “buy” rating in a research report on Friday, October 18th. Rosenblatt Securities boosted their price objective on Netflix from $635.00 to $680.00 and gave the company a “neutral” rating in a research report on Friday, October 18th. Piper Sandler reaffirmed an “overweight” rating and issued a $840.00 target price (up from $800.00) on shares of Netflix in a research report on Friday, October 18th. Finally, The Goldman Sachs Group raised their target price on Netflix from $750.00 to $850.00 and gave the company a “neutral” rating in a research note on Wednesday. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and twenty-four have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Netflix has an average rating of “Moderate Buy” and a consensus target price of $824.00.

Insider Activity at Netflix

In related news, Director Richard N. Barton sold 6,364 shares of the stock in a transaction on Tuesday, January 7th. The stock was sold at an average price of $879.38, for a total value of $5,596,374.32. Following the completion of the transaction, the director now owns 246 shares in the company, valued at $216,327.48. This trade represents a 96.28 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Gregory K. Peters sold 4,186 shares of Netflix stock in a transaction dated Friday, October 18th. The stock was sold at an average price of $750.00, for a total value of $3,139,500.00. Following the completion of the transaction, the chief executive officer now directly owns 13,090 shares in the company, valued at $9,817,500. This represents a 24.23 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 156,742 shares of company stock valued at $131,030,268 over the last ninety days. Insiders own 1.76% of the company’s stock.

Institutional Investors Weigh In On Netflix

Hedge funds have recently made changes to their positions in the company. RPg Family Wealth Advisory LLC purchased a new position in Netflix during the 3rd quarter worth approximately $25,000. E Fund Management Hong Kong Co. Ltd. boosted its position in shares of Netflix by 700.0% in the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock worth $34,000 after buying an additional 42 shares during the period. MidAtlantic Capital Management Inc. purchased a new position in shares of Netflix during the third quarter valued at $37,000. FSA Wealth Management LLC acquired a new position in Netflix during the third quarter valued at $38,000. Finally, First Personal Financial Services purchased a new stake in Netflix in the 3rd quarter worth about $40,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Price Performance

The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 0.62. The stock has a 50-day simple moving average of $878.06 and a 200 day simple moving average of $752.69. The stock has a market capitalization of $358.08 billion, a price-to-earnings ratio of 47.41, a price-to-earnings-growth ratio of 1.77 and a beta of 1.27.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Thursday, October 17th. The Internet television network reported $5.40 EPS for the quarter, topping the consensus estimate of $5.09 by $0.31. Netflix had a net margin of 20.70% and a return on equity of 35.86%. The business had revenue of $9.82 billion during the quarter, compared to analysts’ expectations of $9.77 billion. On average, equities research analysts forecast that Netflix, Inc. will post 19.78 EPS for the current fiscal year.

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.