TLDR
- NFLX opened at $78.25, well below its 52-week high of $126.71, and is down 5.35% on the day
- Q2 revenue came in at $12.56 billion, up 13.4% year-over-year but slightly below the $12.59 billion analyst estimate
- CEO Gregory Peters sold 27,312 shares for over $2 million; insiders sold $15.8 million worth of stock in the past 90 days
- Trans Canada Capital bought 272,240 shares worth ~$19.4 million in Q2, making NFLX its 14th-largest holding
- Analysts hold a “Moderate Buy” consensus with an average price target of $96.65
Netflix (NFLX) stock opened at $78.25 on Monday, down 5.35% on the day, sitting far below its 52-week high of $126.71. The stock has been under pressure since April, weighed down by slowing revenue growth and a wave of insider selling.
Q2 earnings, reported July 16, showed revenue of $12.56 billion, up 13.4% year-over-year. That sounds solid, but it was the slowest growth rate in four quarters and came in just under the analyst consensus of $12.58 billion. EPS of $0.80 edged past estimates of $0.79 by a penny.
Forward guidance didn’t help. Netflix guided Q3 revenue growth of just 11.7% versus the prior year period, which cooled investor enthusiasm further.
Insider Selling Raises Eyebrows
CEO Gregory Peters sold 27,312 shares at an average price of $73.54 on August 6, netting over $2 million. Following the transaction, he still holds 120,931 shares. Director Richard Barton also sold 2,160 shares at $75.10 on August 5, reducing his stake by nearly 90%.
In total, insiders have sold 213,595 shares worth $15.8 million over the past 90 days. Insiders now hold just 1.24% of the company.
While insider selling doesn’t always signal trouble, the volume here is hard to ignore.
On the other side, Trans Canada Capital picked up 272,240 Netflix shares in Q2, valued at around $19.4 million. The position now represents about 1.1% of its portfolio and ranks as its 14th-largest holding. Institutional investors collectively own 80.93% of the stock.
Several other funds made smaller additions in the same period, including Pacific Sun Financial, Beaird Harris Wealth Management, and Sombo Asset Management.
The Bull Case Still Exists
Despite the headwinds, Netflix remains the most profitable streamer by a wide margin. Through the first half of 2026, it converted roughly $6 billion, or 24%, of its $24.8 billion in revenue into net income.
International growth is holding up. Its European and Middle East arm grew 11% on a currency-neutral basis last quarter. Latin America was up 16%. Asia-Pacific posted 18% growth.
Netflix also raised subscription prices in the UK for the second time in 2026, a move that could boost average revenue per member if retention holds.
The ad-supported tier continues to attract attention from investors and advertisers, offering a second revenue stream beyond subscriptions.
Netflix’s 50-day moving average sits at $75.52, while the 200-day average is $84.45. The stock trades at a PE of 24.63 with a P/E/G ratio of 1.10.
The average analyst price target of $96.65 implies meaningful upside from current levels. The breakdown: four Strong Buy ratings, 34 Buy ratings, 16 Hold, and one Sell.
Bank of America cut its price target from $125 to $105 but kept a Buy rating. Piper Sandler lowered its target from $115 to $85 but maintained an Overweight rating. BMO Capital Markets reiterated Outperform in August.
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