Netflix (NASDAQ:NFLX) Shares Gap Down After Insider Selling

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Shares of Netflix, Inc. (NASDAQ:NFLX) gapped down before the market opened on Tuesday following insider selling activity. The stock had previously closed at $284.94, but opened at $278.05. Netflix shares last traded at $266.69, with a volume of 11,348,410 shares traded.

Specifically, CEO Reed Hastings sold 43,372 shares of the company’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $266.57, for a total value of $11,561,674.04. Following the sale, the chief executive officer now directly owns 43,372 shares of the company’s stock, valued at $11,561,674.04. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Bradford L. Smith purchased 6,499 shares of the stock in a transaction on Thursday, August 8th. The stock was acquired at an average cost of $308.49 per share, for a total transaction of $2,004,876.51. Following the completion of the acquisition, the director now owns 799 shares of the company’s stock, valued at approximately $246,483.51. The disclosure for this purchase can be found here. Over the last three months, insiders sold 135,702 shares of company stock worth $38,290,015. 3.72% of the stock is owned by insiders.

Several equities research analysts have commented on the stock. Aegis reaffirmed a “hold” rating and issued a $275.00 price target on shares of Netflix in a report on Tuesday. BidaskClub raised shares of Netflix from a “strong sell” rating to a “sell” rating in a report on Thursday, October 3rd. KeyCorp reaffirmed a “hold” rating on shares of Netflix in a report on Tuesday, September 24th. BMO Capital Markets lowered their price target on shares of Netflix from $470.00 to $440.00 and set an “outperform” rating on the stock in a report on Thursday, July 18th. Finally, Wells Fargo & Co upped their price target on shares of Netflix from $288.00 to $308.00 and gave the company a “market perform” rating in a report on Thursday, October 17th. Six investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, twenty-four have issued a buy rating and one has issued a strong buy rating to the company’s stock. Netflix presently has a consensus rating of “Hold” and an average target price of $363.11.

The stock has a market capitalization of $118.77 billion, a PE ratio of 101.22, a price-to-earnings-growth ratio of 2.78 and a beta of 1.20. The stock’s 50 day moving average is $278.47 and its two-hundred day moving average is $328.99. The company has a debt-to-equity ratio of 1.81, a quick ratio of 0.85 and a current ratio of 0.73.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Wednesday, October 16th. The Internet television network reported $1.47 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.05 by $0.42. The firm had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.25 billion. Netflix had a net margin of 7.49% and a return on equity of 23.65%. Netflix’s quarterly revenue was up 31.2% compared to the same quarter last year. During the same period last year, the company posted $0.89 EPS. Equities research analysts expect that Netflix, Inc. will post 3.32 EPS for the current fiscal year.

Institutional investors have recently modified their holdings of the stock. Nelson Roberts Investment Advisors LLC raised its holdings in Netflix by 600.0% in the 2nd quarter. Nelson Roberts Investment Advisors LLC now owns 84 shares of the Internet television network’s stock valued at $31,000 after acquiring an additional 72 shares during the last quarter. Intercontinental Wealth Advisors LLC raised its holdings in Netflix by 100.0% in the 3rd quarter. Intercontinental Wealth Advisors LLC now owns 96 shares of the Internet television network’s stock valued at $26,000 after acquiring an additional 48 shares during the last quarter. SRS Capital Advisors Inc. acquired a new stake in Netflix in the 2nd quarter valued at about $39,000. SevenBridge Financial Group LLC raised its holdings in Netflix by 66.7% in the 2nd quarter. SevenBridge Financial Group LLC now owns 125 shares of the Internet television network’s stock valued at $46,000 after acquiring an additional 50 shares during the last quarter. Finally, CX Institutional acquired a new stake in Netflix in the 3rd quarter valued at about $35,000. 78.93% of the stock is currently owned by hedge funds and other institutional investors.

About Netflix (NASDAQ:NFLX)

Netflix, Inc provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. 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 screens, including TVs, digital video players, television set-top boxes, and mobile devices.

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