Netflix (NASDAQ:NFLX) Shares Gap Down - Here's Why

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $103.22, but opened at $98.78. Netflix shares last traded at $103.2180, with a volume of 29,045,419 shares.

Wall Street Analysts Forecast Growth

• Netflix Goes All In: The $70B Play to End the Streaming Wars

NFLX has been the topic of a number of research analyst reports. The Goldman Sachs Group lowered their price target on Netflix from $131.00 to $130.00 and set a "neutral" rating on the stock in a report on Tuesday, September 30th. Guggenheim restated a "buy" rating and set a $145.00 price objective on shares of Netflix in a research report on Wednesday, October 22nd. Benchmark restated a "hold" rating on shares of Netflix in a research note on Wednesday, October 22nd. Piper Sandler reiterated an "overweight" rating and set a $140.00 price objective (down previously from $150.00) on shares of Netflix in a research report on Wednesday, October 22nd. Finally, Wells Fargo & Company lowered their target price on Netflix from $156.00 to $151.00 and set an "overweight" rating on the stock in a report on Wednesday, October 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Netflix presently has a consensus rating of "Moderate Buy" and an average price target of $134.54.

Check Out Our Latest Report on Netflix

Netflix Stock Down 2.8%

• Is Netflix Making a Calculated Play for the Dow Jones?

The company has a market capitalization of $424.92 billion, a PE ratio of 41.92, a P/E/G ratio of 1.54 and a beta of 1.71. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.33 and a quick ratio of 1.33. The company has a 50-day moving average of $113.27 and a two-hundred day moving average of $119.25.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results on Tuesday, October 21st. The Internet television network reported $5.87 EPS for the quarter, topping analysts' consensus estimates of $0.69 by $5.18. Netflix had a return on equity of 41.86% and a net margin of 24.05%.The business had revenue of $11.32 billion during the quarter, compared to analysts' expectations of $11.52 billion. During the same quarter in the prior year, the business posted $0.54 earnings per share. The business's quarterly revenue was up 17.2% on a year-over-year basis. Netflix has set its Q4 2025 guidance at 5.450-5.450 EPS. Sell-side analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

• Warner Bros. Sale Rumors Heat Up: What Investors Need to Know

In other news, insider David A. Hyman sold 314,620 shares of the firm's stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $109.98, for a total transaction of $34,603,166.08. Following the sale, the insider directly owned 316,100 shares in the company, valued at $34,765,942.40. This trade represents a 49.88% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Reed Hastings sold 375,470 shares of Netflix stock in a transaction on Monday, December 1st. The shares were sold at an average price of $108.43, for a total transaction of $40,712,212.10. Following the transaction, the director owned 3,940 shares in the company, valued at approximately $427,214.20. This trade represents a 98.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,619,840 shares of company stock worth $181,648,613 in the last 90 days. Insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Netflix

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in Netflix by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 38,521,322 shares of the Internet television network's stock worth $46,183,983,000 after purchasing an additional 142,238 shares in the last quarter. State Street Corp raised its position in shares of Netflix by 2.1% during the second quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock valued at $23,359,801,000 after buying an additional 360,604 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of Netflix by 2.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock worth $10,940,505,000 after buying an additional 304,399 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Netflix by 2.4% in the second quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network's stock worth $13,234,278,000 after buying an additional 229,182 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Netflix during the second quarter worth $7,929,645,000. 80.93% of the stock is owned by institutional investors.

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.

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