Netflix (NASDAQ:NFLX) Shares Down 4.7% Following Insider Selling

Netflix, Inc. (NASDAQ:NFLX) shares fell 4.7% during trading on Thursday after an insider sold shares in the company. The company traded as low as $75.23 and last traded at $75.86. 72,793,904 shares changed hands during trading, an increase of 42% from the average session volume of 51,326,773 shares. The stock had previously closed at $79.62.

Specifically, insider Cletus R. Willems sold 3,136 shares of the firm’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $82.67, for a total value of $259,253.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Gregory K. Peters sold 27,312 shares of the company’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $83.24, for a total transaction of $2,273,450.88. Following the completion of the transaction, the chief executive officer directly owned 122,140 shares in the company, valued at approximately $10,166,933.60. The trade was a 18.27% decrease in their position. The SEC filing for this sale provides additional information. In related news, insider David A. Hyman sold 5,727 shares of the stock in a transaction on Monday, February 9th. The stock was sold at an average price of $81.06, for a total value of $464,230.62. Following the sale, the insider owned 316,100 shares in the company, valued at approximately $25,623,066. This trade represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on NFLX. Pivotal Research decreased their target price on Netflix from $105.00 to $95.00 and set a “hold” rating on the stock in a research note on Wednesday, January 21st. Piper Sandler reissued a “positive” rating and set a $103.00 price objective (down previously from $140.00) on shares of Netflix in a report on Wednesday, January 21st. HSBC decreased their price objective on shares of Netflix from $107.00 to $106.00 and set a “buy” rating on the stock in a research report on Wednesday, January 21st. Oppenheimer set a $125.00 target price on shares of Netflix and gave the company an “outperform” rating in a research report on Wednesday, January 21st. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $98.00 price target (up previously from $95.00) on shares of Netflix in a research note on Wednesday, January 21st. One investment analyst has rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating and sixteen have issued a Hold rating to the company. Based on data from MarketBeat, Netflix currently has an average rating of “Moderate Buy” and an average target price of $116.08.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Analysts see meaningful upside vs. current levels — some outlets highlight as much as ~55% upside, framing the pullback as a buying opportunity if deal risk fades. Analysts See 55% Upside for Netflix Despite $77 Share Price
• Positive Sentiment: Long-term investors remain committed — Loomis Sayles’ Global Growth Fund reiterated its structural thesis on Netflix, supporting a buy-the-dip narrative among some institutions. Loomis Sayles Maintains Structural Investment Thesis for Netflix
• Positive Sentiment: Recent quarterly results still support fundamentals — Netflix beat EPS/revenue in January and continues to show solid revenue growth and margins, a reason some investors treat the sell-off as temporary. Netflix Latest Earnings & Profile
• Neutral Sentiment: Options and trading activity ramping — increased call activity and options trade write-ups point to tactical, event-driven positioning rather than a clear directional vote. Traders may be using volatility to set up leveraged bets. Netflix Stock Pulls Back, Calls Heat Up
• Negative Sentiment: Paramount’s improved bid raises the odds WBD could accept an alternative to Netflix — Paramount sweetened its offer (ticking fees, covering break-up costs), increasing the likelihood Netflix loses the deal and adding takeover-execution risk. Paramount Sweetens Warner Bros Bid
• Negative Sentiment: Activist pressure at Warner Bros. Discovery is ramping — Ancora and other investors are opposing the Netflix deal and backing alternatives, which heightens uncertainty and market volatility around NFLX until the WBD process resolves. Ancora Capital Builds Stake in Warner Bros
• Negative Sentiment: Insider selling by senior executives adds to negative sentiment — disclosed sales by CEO Gregory Peters and others have been highlighted by media and can weigh on near-term investor confidence. Gregory Peters Sells Shares of Netflix
• Negative Sentiment: Elevated negative coverage and a fresh 52‑week low amplify downside risk — a wave of stories questioning valuation, deal pricing and industry positioning keeps selling pressure until clarity arrives. Netflix Stock Hits New 52-Week Low

Netflix Stock Up 1.3%

The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.19 and a current ratio of 1.19. The stock’s 50 day moving average price is $88.67 and its 200-day moving average price is $107.06. The company has a market cap of $324.56 billion, a PE ratio of 30.42, a PEG ratio of 1.35 and a beta of 1.71.

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

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in NFLX. Imprint Wealth LLC bought a new position in shares of Netflix in the third quarter worth about $25,000. DiNuzzo Private Wealth Inc. boosted its position in Netflix by 885.2% in the 4th quarter. DiNuzzo Private Wealth Inc. now owns 266 shares of the Internet television network’s stock valued at $25,000 after buying an additional 239 shares during the period. First Financial Corp IN grew its stake in Netflix by 900.0% in the 4th quarter. First Financial Corp IN now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 243 shares in the last quarter. Turning Point Benefit Group Inc. increased its position in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 268 shares during the period. Finally, Jessup Wealth Management Inc purchased a new position in shares of Netflix during the fourth quarter worth approximately $27,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.