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

Netflix, Inc. (NASDAQ:NFLXGet Free Report) gapped down before the market opened on Friday after Canaccord Genuity Group downgraded the stock from a buy rating to a hold rating. The stock had previously closed at $610.56, but opened at $567.88. Canaccord Genuity Group now has a $585.00 price target on the stock, down from their previous price target of $720.00. Netflix shares last traded at $569.40, with a volume of 4,111,592 shares trading hands.

A number of other equities analysts also recently issued reports on the stock. DZ Bank upgraded shares of Netflix from a “hold” rating to a “buy” rating and set a $600.00 price objective on the stock in a research note on Thursday, January 25th. Benchmark restated a “sell” rating and issued a $440.00 target price on shares of Netflix in a research note on Thursday. Canaccord Genuity Group restated a “hold” rating and issued a $585.00 target price (down from $720.00) on shares of Netflix in a research note on Friday. Deutsche Bank Aktiengesellschaft raised their target price on shares of Netflix from $525.00 to $550.00 and gave the company a “hold” rating in a research note on Monday, April 15th. Finally, Sanford C. Bernstein raised their target price on shares of Netflix from $490.00 to $600.00 and gave the company a “market perform” rating in a research note on Friday. One investment analyst has rated the stock with a sell rating, twelve have issued a hold rating and twenty-two have given a buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $630.58.

Get Our Latest Analysis on NFLX

Insiders Place Their Bets

In other news, CEO Gregory K. Peters sold 13,655 shares of the stock in a transaction dated Wednesday, January 24th. The shares were sold at an average price of $543.80, for a total transaction of $7,425,589.00. Following the sale, the chief executive officer now directly owns 13,090 shares of the company’s stock, valued at approximately $7,118,342. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, CEO Theodore A. Sarandos sold 68,957 shares of the stock in a transaction dated Friday, February 9th. The shares were sold at an average price of $561.33, for a total transaction of $38,707,632.81. Following the sale, the chief executive officer now directly owns 1,278 shares of the company’s stock, valued at approximately $717,379.74. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Gregory K. Peters sold 13,655 shares of the stock in a transaction dated Wednesday, January 24th. The stock was sold at an average price of $543.80, for a total transaction of $7,425,589.00. Following the sale, the chief executive officer now directly owns 13,090 shares in the company, valued at $7,118,342. The disclosure for this sale can be found here. Over the last quarter, insiders sold 268,335 shares of company stock worth $151,619,811. Company insiders own 2.45% of the company’s stock.

Institutional Investors Weigh In On Netflix

Hedge funds have recently modified their holdings of the company. Columbia Trust Co 01012016 raised its position in shares of Netflix by 15.3% during the 4th quarter. Columbia Trust Co 01012016 now owns 1,566 shares of the Internet television network’s stock worth $762,000 after purchasing an additional 208 shares during the last quarter. Crumly & Associates Inc. raised its position in shares of Netflix by 4.1% during the 4th quarter. Crumly & Associates Inc. now owns 2,105 shares of the Internet television network’s stock worth $1,025,000 after purchasing an additional 83 shares during the last quarter. Venture Visionary Partners LLC raised its position in shares of Netflix by 15.4% during the 4th quarter. Venture Visionary Partners LLC now owns 9,849 shares of the Internet television network’s stock worth $4,795,000 after purchasing an additional 1,318 shares during the last quarter. Assenagon Asset Management S.A. raised its position in shares of Netflix by 142.6% during the 3rd quarter. Assenagon Asset Management S.A. now owns 667,597 shares of the Internet television network’s stock worth $252,085,000 after purchasing an additional 392,427 shares during the last quarter. Finally, Sandy Cove Advisors LLC raised its position in shares of Netflix by 10.6% during the 4th quarter. Sandy Cove Advisors LLC now owns 1,187 shares of the Internet television network’s stock worth $578,000 after purchasing an additional 114 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix Stock Performance

The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 0.69. The firm’s 50-day moving average is $605.65 and its two-hundred day moving average is $514.02. The stock has a market cap of $240.20 billion, a price-to-earnings ratio of 38.52, a P/E/G ratio of 1.64 and a beta of 1.22.

Netflix (NASDAQ:NFLXGet Free Report) last released its quarterly earnings results on Thursday, April 18th. The Internet television network reported $5.28 earnings per share for the quarter, topping the consensus estimate of $4.51 by $0.77. Netflix had a net margin of 18.42% and a return on equity of 29.46%. The firm had revenue of $9.37 billion during the quarter, compared to the consensus estimate of $9.28 billion. During the same quarter in the prior year, the firm earned $2.88 EPS. The company’s revenue for the quarter was up 14.8% on a year-over-year basis. As a group, sell-side analysts expect that Netflix, Inc. will post 17.08 earnings per share for the current year.

About Netflix

(Get Free Report)

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.

Further Reading

Receive News & Ratings for Netflix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Netflix and related companies with MarketBeat.com's FREE daily email newsletter.