Netflix (NASDAQ:NFLX) Stock Gets Price Target Trim from KeyCorp

Netflix (NASDAQ:NFLX) had its target price cut by equities research analysts at KeyCorp from $92.00 to $85.00 in a note issued to investors on Tuesday, Benzinga reports. The firm presently has an “overweight” rating on the Internet television network’s stock. KeyCorp’s target price suggests a potential upside of 20.38% from the stock’s current price.

NFLX has been the topic of several other research reports. China Renaissance decreased their price objective on Netflix from $100.00 to $80.00 and set a “hold” rating on the stock in a research note on Friday, July 17th. China Intl Cap upgraded Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. Itau BBA Securities decreased their price objective on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a research report on Wednesday, August 5th. Citigroup restated a “market perform” rating on shares of Netflix in a research note on Monday, August 17th. Finally, Sanford C. Bernstein assumed coverage on shares of Netflix in a research note on Monday, September 28th. They set a “buy” rating on the stock. Four investment analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, fifteen have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus target price of $94.53.

Netflix Stock Performance

NFLX opened at $70.61 on Tuesday. The company’s 50 day moving average is $75.40 and its 200 day moving average is $81.19. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The company has a market cap of $294.02 billion, a price-to-earnings ratio of 22.23, a PEG ratio of 0.99 and a beta of 1.62. Netflix has a 12-month low of $65.08 and a 12-month high of $124.86.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the prior year, the company earned $0.72 earnings per share. The firm’s revenue was up 13.4% on a year-over-year basis. On average, equities research analysts predict that Netflix will post 3.59 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Theodore A. Sarandos sold 105,850 shares of Netflix stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the sale, the chief executive officer owned 206,266 shares in the company, valued at $15,063,605.98. This trade represents a 33.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 2,160 shares of the business’s stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total transaction of $162,216.00. Following the completion of the transaction, the director directly owned 246 shares in the company, valued at $18,474.60. This trade represents a 89.78% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 over the last ninety days. 1.24% of the stock is owned by company insiders.

Institutional Trading of Netflix

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Merkkuri Wealth Advisors LLC purchased a new position in shares of Netflix in the first quarter valued at $31,000. Bayban lifted its position in Netflix by 400.0% during the first quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after purchasing an additional 280 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd bought a new position in Netflix during the second quarter valued at $26,000. Bank of New Hampshire grew its stake in shares of Netflix by 900.0% in the 4th quarter. Bank of New Hampshire now owns 380 shares of the Internet television network’s stock worth $36,000 after buying an additional 342 shares in the last quarter. Finally, Compound Global Advisors LLC purchased a new position in shares of Netflix in the 2nd quarter worth $29,000. 80.93% of the stock is currently owned by institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix’s valuation has become more attractive after a roughly 40% decline over the past year. The shares trade at about 21.6–22 times earnings, well below the company’s historical average, while revenue continues to grow. Some investors view a strong earnings report or improved outlook as a potential catalyst. What Could Netflix Stock Be Worth In Three Years?
• Positive Sentiment: International markets continue to grow faster than Netflix’s U.S. and Canada segment, and one analyst expects the stock could rebound sharply after the October 20 earnings release. Netflix is also viewed favorably relative to the newly combined Skydance media competitor. Prediction: Netflix Stock Is Going to Soar After Oct. 20
• Neutral Sentiment: Investors are focused on whether Netflix can meet guidance for approximately 12% third-quarter revenue growth, with advertising performance, subscriber trends and management’s outlook likely to determine the next major move. Netflix’s Q3 Guidance Calls for About 12% Revenue Growth
• Neutral Sentiment: The appointment of Craig Ferguson to lead content acquisition could strengthen licensing and distribution decisions, but its financial impact is not yet clear. What Is Netflix Signaling With Its New Content Acquisition Chief?
• Negative Sentiment: Growth is slowing in Netflix’s largest region: U.S. and Canada generated about 43% of second-quarter revenue but grew only 10%, down from 18% two quarters earlier. Currency-neutral growth has also decelerated across international regions, challenging the argument that overseas expansion alone makes the stock a bargain. Netflix’s Regions Abroad Are Growing Faster Than Its Home Market
• Negative Sentiment: Reports that Netflix may cut about 5% of its workforce signal efforts to control costs as growth slows and investor enthusiasm cools. Analysts have also cited competitive pressure and concerns about content quality. Netflix Plans 5% Workforce Reduction
• Negative Sentiment: Potential November tax-loss selling could create additional near-term volatility or selling pressure even if the earnings report is solid. Hold Netflix Through Earnings, But Be Aware Of Upcoming November Tax Loss Selling Season

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.