Investors Buy Netflix, Inc. (NASDAQ:NFLX) on Weakness After Insider Selling

Traders purchased shares of Netflix, Inc. (NASDAQ:NFLX) on weakness during trading on Tuesday after an insider sold shares in the company. $302.78 million flowed into the stock on the tick-up and $263.88 million flowed out of the stock on the tick-down, for a money net flow of $38.90 million into the stock. Of all companies tracked, Netflix had the 11th highest net in-flow for the day. Netflix traded down ($0.94) for the day and closed at $186.97Specifically, insider Neil D. Hunt sold 10,000 shares of the firm’s stock in a transaction dated Monday, May 1st. The shares were sold at an average price of $151.91, for a total value of $1,519,100.00. Following the completion of the sale, the insider now owns 462,460 shares of the company’s stock, valued at $70,252,298.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director Richard N. Barton sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, June 27th. The stock was sold at an average price of $156.62, for a total transaction of $156,620.00. Following the completion of the sale, the director now directly owns 8,012 shares of the company’s stock, valued at approximately $1,254,839.44. The disclosure for this sale can be found here. In the last three months, insiders sold 430,801 shares of company stock valued at $71,138,931. 4.90% of the stock is owned by insiders.

Several analysts have issued reports on the stock. Zacks Investment Research downgraded shares of Netflix from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, July 19th. Moffett Nathanson reissued a “neutral” rating on shares of Netflix in a research note on Tuesday, July 18th. SunTrust Banks, Inc. reissued a “hold” rating and issued a $175.00 price objective (up previously from $145.00) on shares of Netflix in a research note on Tuesday, July 18th. Morgan Stanley set a $210.00 price objective on shares of Netflix and gave the stock a “buy” rating in a research note on Tuesday, July 18th. Finally, Wedbush reissued an “underperform” rating and issued a $82.00 price objective (up previously from $73.00) on shares of Netflix in a research note on Tuesday, July 18th. Two equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and twenty-nine have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $169.38.

The company has a 50-day moving average of $159.42 and a 200 day moving average of $149.39. The company has a market cap of $80.72 billion, a PE ratio of 227.46 and a beta of 0.99.

Netflix (NASDAQ:NFLX) last released its earnings results on Monday, July 17th. The Internet television network reported $0.15 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.16 by $0.01. Netflix had a net margin of 3.55% and a return on equity of 12.82%. The company had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.76 billion. During the same quarter in the previous year, the firm posted $0.09 earnings per share. Netflix’s revenue for the quarter was up 32.3% compared to the same quarter last year. Equities research analysts anticipate that Netflix, Inc. will post $1.16 earnings per share for the current year.

A number of large investors have recently added to or reduced their stakes in the stock. Jennison Associates LLC increased its stake in Netflix by 21.4% in the first quarter. Jennison Associates LLC now owns 12,947,211 shares of the Internet television network’s stock worth $1,913,727,000 after buying an additional 2,279,835 shares during the last quarter. FMR LLC increased its stake in Netflix by 6.6% in the first quarter. FMR LLC now owns 21,027,506 shares of the Internet television network’s stock valued at $3,108,076,000 after buying an additional 1,305,294 shares in the last quarter. Vanguard Group Inc. increased its stake in Netflix by 3.5% in the first quarter. Vanguard Group Inc. now owns 27,161,082 shares of the Internet television network’s stock valued at $4,014,680,000 after buying an additional 921,283 shares in the last quarter. Tybourne Capital Management HK Ltd. increased its stake in Netflix by 34.3% in the first quarter. Tybourne Capital Management HK Ltd. now owns 2,316,195 shares of the Internet television network’s stock valued at $342,357,000 after buying an additional 590,966 shares in the last quarter. Finally, Morgan Stanley increased its stake in Netflix by 22.9% in the first quarter. Morgan Stanley now owns 3,061,631 shares of the Internet television network’s stock valued at $452,541,000 after buying an additional 571,126 shares in the last quarter. Hedge funds and other institutional investors own 82.82% of the company’s stock.

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Netflix Company Profile

Netflix, Inc is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States.