Netflix (NASDAQ:NFLX) Hits New 1-Year Low After Insider Selling

Shares of Netflix, Inc. (NASDAQ:NFLX) hit a new 52-week low on Wednesday following insider selling activity. The stock traded as low as $81.53 and last traded at $82.5810, with a volume of 7963215 shares changing hands. The stock had previously closed at $87.26.

Specifically, insider David A. Hyman sold 23,439 shares of the business’s stock in a transaction dated Friday, January 16th. The stock was sold at an average price of $88.11, for a total value of $2,065,210.29. Following the completion of the sale, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $27,851,571. The trade was a 6.90% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Bradford L. Smith sold 31,790 shares of the company’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $88.86, for a total value of $2,824,859.40. Following the completion of the sale, the director directly owned 79,690 shares of the company’s stock, valued at approximately $7,081,253.40. This trade represents a 28.52% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analyst Ratings Changes

A number of equities research analysts have weighed in on NFLX shares. Cfra cut Netflix from a “strong-buy” rating to a “hold” rating and set a $100.00 price objective for the company. in a research note on Monday, January 5th. Seaport Research Partners raised shares of Netflix from a “hold” rating to a “strong-buy” rating in a report on Monday, October 6th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and issued a $98.00 price target (up previously from $95.00) on shares of Netflix in a research report on Wednesday. Huber Research downgraded shares of Netflix to a “buy” rating in a research report on Friday, December 5th. Finally, Citigroup restated a “neutral” rating and issued a $129.50 price objective (up from $128.00) on shares of Netflix in a research note on Friday, October 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $119.36.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Q4 beat and subscriber momentum — Netflix narrowly beat estimates for Q4 revenue and EPS and highlighted strong content (e.g., “Stranger Things”) driving engagement. Helped by ‘Stranger Things’ finale, Netflix lands strong fourth quarter
• Positive Sentiment: Scale: ~325 million paid subscribers — reinforces Netflix’s dominant user base and revenue runway. 325 Million Reasons to Buy Netflix Stock Today
• Positive Sentiment: Ad business is ramping — management said advertising revenue is material and growing, improving monetization beyond subscriptions. Netflix’s advertising strategy shift is starting to pay off
• Neutral Sentiment: All‑cash WBD bid — Netflix amended its offer to all cash (same headline price), which removes share‑swap uncertainty but concentrates the financing burden on Netflix. Netflix Just Upped Its Bid for Warner Bros. to All Cash
• Neutral Sentiment: Regulatory and process uncertainty — EU antitrust review and an active competing bid from Paramount raise the odds of a prolonged, uncertain outcome. EU to weigh Netflix, Paramount bids for Warner Bros at the same time
• Neutral Sentiment: Senate hearing on the WBD deal — co‑CEO Ted Sarandos is set to testify, adding political/regulatory visibility to the transaction. Netflix’s Sarandos to testify in Senate hearing on Warner deal
• Negative Sentiment: Softer near‑term guidance — Q1/2026 guidance came in below some Street expectations, which triggered the post‑earnings selloff despite the quarter’s beat. Netflix’s stock remains under pressure as investors balk at forecast and Warner Bros. acquisition
• Negative Sentiment: Buyback pause and added debt — Netflix paused share repurchases to preserve cash for the WBD offer and has arranged incremental debt, reducing near‑term shareholder returns and increasing leverage. Netflix Craters On Disappointing Guidance, Stock Buyback Pause
• Negative Sentiment: Margin pressure and higher content spend — Netflix plans to lift program spending, which could compress margins in 2026 even if it supports engagement. Netflix to boost program spending in 2026
• Negative Sentiment: Analyst target trims and insider selling — multiple firms trimmed targets after the print and insiders have been net sellers, adding to negative sentiment around valuation and capital allocation. These Analysts Slash Their Forecasts On Netflix Following Q4 Earnings

Netflix Price Performance

The company has a market cap of $353.99 billion, a price-to-earnings ratio of 33.06 and a beta of 1.71. The company’s 50 day moving average price is $96.70 and its 200 day moving average price is $111.60. The company has a current ratio of 1.19, a quick ratio of 1.33 and a debt-to-equity ratio of 0.51.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Tuesday, January 20th. The Internet television network reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.01. The business had revenue of $12.05 billion for the quarter, compared to analyst estimates of $11.97 billion. Netflix had a net margin of 24.30% and a return on equity of 43.26%. The business’s revenue was up 17.6% compared to the same quarter last year. During the same period in the previous year, the business posted $0.43 earnings per share. Netflix has set its Q1 2026 guidance at 0.760-0.760 EPS. Equities research analysts forecast that Netflix, Inc. will post 24.58 earnings per share for the current year.

Hedge Funds Weigh In On Netflix

Large investors have recently modified their holdings of the business. Brighton Jones LLC grew its stake in shares of Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock worth $4,804,000 after purchasing an additional 257 shares during the period. Revolve Wealth Partners LLC boosted its holdings in Netflix by 16.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after buying an additional 144 shares in the last quarter. MBA Advisors LLC acquired a new position in Netflix during the second quarter worth about $253,000. Sivia Capital Partners LLC increased its holdings in Netflix by 21.2% in the second quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after buying an additional 246 shares in the last quarter. Finally, Maseco LLP purchased a new position in Netflix in the second quarter valued at about $39,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

About Netflix

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.