Netflix (NASDAQ:NFLX) Stock Price Down 4.4% – What’s Next?

Netflix, Inc. (NASDAQ:NFLX) shares dropped 4.4% on Friday . The stock traded as low as $861.01 and last traded at $876.26. Approximately 2,044,777 shares traded hands during trading, a decline of 43% from the average daily volume of 3,604,901 shares. The stock had previously closed at $917.05.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on NFLX. Oppenheimer raised their target price on shares of Netflix from $1,040.00 to $1,150.00 and gave the stock an “outperform” rating in a report on Wednesday, January 22nd. StockNews.com lowered Netflix from a “buy” rating to a “hold” rating in a research report on Tuesday, February 4th. Bank of America increased their target price on Netflix from $1,000.00 to $1,175.00 and gave the stock a “buy” rating in a research report on Wednesday, January 22nd. Macquarie boosted their price target on shares of Netflix from $965.00 to $1,150.00 and gave the company an “outperform” rating in a report on Wednesday, January 22nd. Finally, Canaccord Genuity Group raised Netflix from a “hold” rating to a “buy” rating and increased their price objective for the stock from $940.00 to $1,150.00 in a report on Wednesday, January 22nd. Ten analysts have rated the stock with a hold rating, twenty-seven have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $1,023.74.

Netflix Stock Performance

The company has a market capitalization of $366.10 billion, a price-to-earnings ratio of 43.16, a P/E/G ratio of 2.12 and a beta of 1.38. The firm’s 50 day simple moving average is $970.24 and its 200-day simple moving average is $875.80. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.22 and a current ratio of 1.22.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share for the quarter, beating the consensus estimate of $4.20 by $0.07. Netflix had a net margin of 22.34% and a return on equity of 38.32%. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $10.14 billion. During the same quarter in the prior year, the business earned $2.11 EPS. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year. Analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Activity at Netflix

In related news, Director Ann Mather sold 2,682 shares of the company’s stock in a transaction on Monday, February 3rd. The shares were sold at an average price of $973.00, for a total value of $2,609,586.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, 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 transaction of $5,596,374.32. Following the transaction, the director now directly owns 246 shares in the company, valued at $216,327.48. The trade was a 96.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 280,676 shares of company stock valued at $273,515,672. 1.76% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. West Michigan Advisors LLC grew its stake in shares of Netflix by 1.3% in the fourth quarter. West Michigan Advisors LLC now owns 776 shares of the Internet television network’s stock worth $692,000 after acquiring an additional 10 shares during the last quarter. Warwick Investment Management Inc. grew its holdings in shares of Netflix by 3.5% during the 4th quarter. Warwick Investment Management Inc. now owns 298 shares of the Internet television network’s stock worth $266,000 after purchasing an additional 10 shares in the last quarter. MRP Capital Investments LLC increased its position in shares of Netflix by 1.0% during the fourth quarter. MRP Capital Investments LLC now owns 1,052 shares of the Internet television network’s stock valued at $938,000 after purchasing an additional 10 shares during the period. Bedell Frazier Investment Counselling LLC raised its stake in shares of Netflix by 2.2% in the fourth quarter. Bedell Frazier Investment Counselling LLC now owns 462 shares of the Internet television network’s stock valued at $412,000 after purchasing an additional 10 shares in the last quarter. Finally, Mission Creek Capital Partners Inc. lifted its position in Netflix by 0.3% in the fourth quarter. Mission Creek Capital Partners Inc. now owns 3,826 shares of the Internet television network’s stock worth $3,410,000 after purchasing an additional 10 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.