Netflix (NASDAQ:NFLX) Shares Gap Down After Analyst Downgrade

Netflix, Inc. (NASDAQ:NFLX) shares gapped down before the market opened on Wednesday after Truist Securities lowered their price target on the stock from $630.00 to $600.00. The stock had previously closed at $549.57, but opened at $505.65. Netflix shares last traded at $509.28, with a volume of 233,141 shares.

Several other equities research analysts have also issued reports on NFLX. Wells Fargo & Company raised Netflix from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $510.00 to $700.00 in a research note on Wednesday, January 20th. Stifel Nicolaus upgraded Netflix from a “hold” rating to a “buy” rating and raised their price target for the stock from $550.00 to $560.00 in a research report on Wednesday. Benchmark cut their price objective on shares of Netflix from $485.00 to $472.00 and set a “sell” rating on the stock in a research report on Monday, March 22nd. Truist reduced their target price on shares of Netflix from $630.00 to $600.00 in a research note on Wednesday. Finally, Raymond James reaffirmed a “hold” rating on shares of Netflix in a research note on Friday, April 16th. Four analysts have rated the stock with a sell rating, seven have issued a hold rating and twenty-eight have given a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus target price of $590.90.

In other Netflix news, Director Jay C. Hoag sold 974 shares of the firm’s stock in a transaction that occurred on Friday, February 5th. The shares were sold at an average price of $548.93, for a total value of $534,657.82. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jay C. Hoag sold 3,578 shares of Netflix stock in a transaction on Monday, February 8th. The stock was sold at an average price of $553.16, for a total transaction of $1,979,206.48. The disclosure for this sale can be found here. 3.40% of the stock is owned by insiders.

Hedge funds have recently made changes to their positions in the stock. Hallmark Capital Management Inc. acquired a new position in Netflix during the 1st quarter valued at about $215,000. Cottage Street Advisors LLC acquired a new stake in Netflix in the first quarter worth about $1,052,000. 6 Meridian grew its stake in shares of Netflix by 96.4% during the first quarter. 6 Meridian now owns 7,024 shares of the Internet television network’s stock worth $3,664,000 after acquiring an additional 3,447 shares during the last quarter. Reilly Financial Advisors LLC grew its stake in shares of Netflix by 3.7% during the first quarter. Reilly Financial Advisors LLC now owns 839 shares of the Internet television network’s stock worth $438,000 after acquiring an additional 30 shares during the last quarter. Finally, Roman Butler Fullerton & Co. increased its holdings in shares of Netflix by 4.7% during the first quarter. Roman Butler Fullerton & Co. now owns 3,268 shares of the Internet television network’s stock valued at $1,795,000 after acquiring an additional 147 shares in the last quarter. Hedge funds and other institutional investors own 79.71% of the company’s stock.

The company has a market capitalization of $225.34 billion, a price-to-earnings ratio of 82.06, a PEG ratio of 1.86 and a beta of 0.92. The company has a debt-to-equity ratio of 1.50, a quick ratio of 1.24 and a current ratio of 1.24. The business’s 50 day moving average is $527.73 and its 200 day moving average is $521.11.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Monday, April 19th. The Internet television network reported $3.75 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.98 by $0.77. Netflix had a net margin of 11.78% and a return on equity of 31.48%. The business had revenue of $7.16 billion during the quarter, compared to analysts’ expectations of $7.13 billion. During the same quarter last year, the company posted $1.57 earnings per share. The business’s quarterly revenue was up 24.2% on a year-over-year basis. Sell-side analysts predict that Netflix, Inc. will post 6.27 EPS for the current year.

About Netflix (NASDAQ:NFLX)

Netflix, Inc provides entertainment services. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected devices, including TVs, digital video players, television set-top boxes, and mobile devices.

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