Netflix (NASDAQ:NFLX) Stock Price Down 6.9% After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX)’s stock price dropped 6.9% during mid-day trading on Friday after Canaccord Genuity Group downgraded the stock from a buy rating to a hold rating. Canaccord Genuity Group now has a $585.00 price target on the stock, down from their previous price target of $720.00. Netflix traded as low as $556.61 and last traded at $568.25. Approximately 8,019,133 shares changed hands during trading, an increase of 85% from the average daily volume of 4,330,454 shares. The stock had previously closed at $610.56.

A number of other analysts have also recently commented on NFLX. Bank of America upped their price objective on Netflix from $585.00 to $650.00 and gave the company a “buy” rating in a research report on Wednesday, January 24th. Loop Capital upped their price objective on Netflix from $585.00 to $700.00 and gave the company a “buy” rating in a research report on Monday, March 18th. Morgan Stanley upped their price objective on Netflix from $600.00 to $700.00 and gave the company an “overweight” rating in a research report on Friday, April 12th. TD Cowen upped their price objective on Netflix from $600.00 to $725.00 and gave the company a “buy” rating in a research report on Monday, April 8th. Finally, Sanford C. Bernstein upped their price objective on Netflix from $490.00 to $600.00 and gave the company a “market perform” rating in a research report on Friday. One research analyst has rated the stock with a sell rating, twelve have given a hold rating and twenty-two have issued a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $630.58.

Insider Activity at Netflix

In related news, insider David A. Hyman sold 47,574 shares of the stock in a transaction that occurred on Wednesday, January 24th. The stock was sold at an average price of $537.92, for a total transaction of $25,591,006.08. Following the completion of the transaction, the insider now directly owns 31,610 shares of the company’s stock, valued at $17,003,651.20. The sale was disclosed in a filing with the SEC, which is available through this link. In other news, insider David A. Hyman sold 47,574 shares of the firm’s stock in a transaction that occurred on Wednesday, January 24th. The stock was sold at an average price of $537.92, for a total value of $25,591,006.08. Following the completion of the sale, the insider now directly owns 31,610 shares of the company’s stock, valued at approximately $17,003,651.20. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Gregory K. Peters sold 5,352 shares of the firm’s stock in a transaction that occurred on Monday, March 18th. The shares were sold at an average price of $625.00, for a total value of $3,345,000.00. Following the completion of the sale, the chief executive officer now directly owns 13,090 shares of the company’s stock, valued at $8,181,250. The disclosure for this sale can be found here. Over the last three months, insiders sold 268,335 shares of company stock valued at $151,619,811. Insiders own 2.45% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several institutional investors have recently modified their holdings of NFLX. Authentikos Wealth Advisory LLC purchased a new stake in shares of Netflix in the third quarter worth approximately $25,000. Spartan Planning & Wealth Management purchased a new stake in shares of Netflix in the third quarter worth approximately $26,000. Carmel Capital Partners LLC raised its holdings in shares of Netflix by 290.0% in the third quarter. Carmel Capital Partners LLC now owns 78 shares of the Internet television network’s stock worth $30,000 after buying an additional 58 shares during the period. VitalStone Financial LLC raised its holdings in shares of Netflix by 933.3% in the fourth quarter. VitalStone Financial LLC now owns 62 shares of the Internet television network’s stock worth $30,000 after buying an additional 56 shares during the period. Finally, Beaird Harris Wealth Management LLC raised its holdings in shares of Netflix by 1,550.0% in the fourth quarter. Beaird Harris Wealth Management LLC now owns 66 shares of the Internet television network’s stock worth $32,000 after buying an additional 62 shares during the period. 80.93% of the stock is owned by institutional investors.

Netflix Stock Performance

The company has a debt-to-equity ratio of 0.69, a current ratio of 1.12 and a quick ratio of 1.12. The firm has a fifty day moving average price of $605.65 and a two-hundred day moving average price of $513.07. The stock has a market capitalization of $240.20 billion, a PE ratio of 46.21, a P/E/G ratio of 1.65 and a beta of 1.22.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, April 18th. The Internet television network reported $5.28 EPS for the quarter, topping the consensus estimate of $4.51 by $0.77. The company had revenue of $9.37 billion for the quarter, compared to the consensus estimate of $9.28 billion. Netflix had a return on equity of 24.76% and a net margin of 16.04%. Netflix’s quarterly revenue was up 14.8% on a year-over-year basis. During the same period last year, the business posted $2.88 EPS. Research analysts expect that Netflix, Inc. will post 17.05 EPS for the current year.

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.