Netflix (NASDAQ:NFLX) Trading Down 0.7% – Should You Sell?

Shares of Netflix, Inc. (NASDAQ:NFLX) fell 0.7% on Wednesday . The company traded as low as $863.58 and last traded at $866.42. 503,696 shares changed hands during trading, a decline of 86% from the average session volume of 3,659,233 shares. The stock had previously closed at $872.60.

Analysts Set New Price Targets

Several equities analysts have commented on the company. Pivotal Research increased their target price on Netflix from $925.00 to $1,100.00 and gave the company a “buy” rating in a research report on Wednesday, November 20th. The Goldman Sachs Group set a $750.00 price objective on shares of Netflix in a report on Friday, October 18th. Macquarie reissued an “outperform” rating and set a $795.00 target price on shares of Netflix in a report on Friday, October 18th. Canaccord Genuity Group raised their price target on shares of Netflix from $750.00 to $760.00 and gave the company a “hold” rating in a research note on Friday, October 18th. Finally, Bank of America boosted their price objective on shares of Netflix from $800.00 to $1,000.00 and gave the stock a “buy” rating in a research note on Thursday, November 21st. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and twenty-five have given a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $764.82.

Netflix Stock Performance

The company’s 50 day simple moving average is $769.29 and its 200 day simple moving average is $697.66. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.13 and a current ratio of 1.13. The stock has a market cap of $375.03 billion, a PE ratio of 49.65, a price-to-earnings-growth ratio of 1.69 and a beta of 1.25.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, October 17th. The Internet television network reported $5.40 EPS for the quarter, beating analysts’ consensus estimates of $5.09 by $0.31. Netflix had a return on equity of 35.86% and a net margin of 20.70%. The company had revenue of $9.82 billion during the quarter, compared to the consensus estimate of $9.77 billion. Analysts expect that Netflix, Inc. will post 19.78 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Jay C. Hoag sold 43,750 shares of the firm’s stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $687.07, for a total transaction of $30,059,312.50. Following the completion of the sale, the director now owns 95,040 shares in the company, valued at $65,299,132.80. This trade represents a 31.52 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Reed Hastings sold 25,074 shares of the company’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $680.92, for a total value of $17,073,388.08. Following the completion of the transaction, the chairman now owns 85 shares in the company, valued at approximately $57,878.20. The trade was a 99.66 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 185,866 shares of company stock valued at $133,393,921. 1.76% of the stock is owned by insiders.

Institutional Trading of Netflix

Several hedge funds have recently made changes to their positions in the company. Franklin Resources Inc. raised its stake in Netflix by 11.5% in the 3rd quarter. Franklin Resources Inc. now owns 1,236,539 shares of the Internet television network’s stock valued at $881,652,000 after acquiring an additional 127,541 shares during the period. Synovus Financial Corp raised its position in shares of Netflix by 43.9% in the third quarter. Synovus Financial Corp now owns 12,667 shares of the Internet television network’s stock valued at $8,984,000 after purchasing an additional 3,864 shares during the period. Destination Wealth Management lifted its stake in shares of Netflix by 7.5% during the 3rd quarter. Destination Wealth Management now owns 1,083 shares of the Internet television network’s stock valued at $768,000 after buying an additional 76 shares in the last quarter. Wilmington Savings Fund Society FSB lifted its stake in shares of Netflix by 124.8% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 5,732 shares of the Internet television network’s stock valued at $4,066,000 after buying an additional 3,182 shares in the last quarter. Finally, Arvest Bank Trust Division bought a new position in Netflix in the 3rd quarter worth approximately $784,000. 80.93% of the stock is currently owned by institutional investors.

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.