Netflix (NASDAQ:NFLX) Stock Price Up 1.1% Following Earnings Beat

Netflix, Inc. (NASDAQ:NFLX)’s stock price traded up 1.1% during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $871.00 and last traded at $867.66. 1,874,615 shares were traded during trading, a decline of 39% from the average session volume of 3,077,705 shares. The stock had previously closed at $858.10.

The Internet television network reported $4.27 earnings per share for the quarter, beating analysts’ consensus estimates of $4.20 by $0.07. The firm had revenue of $10.25 billion for the quarter, compared to analyst estimates of $10,141,900 billion. Netflix had a net margin of 22.34% and a return on equity of 39.48%. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.11 EPS.

Wall Street Analysts Forecast Growth

A number of analysts have commented on NFLX shares. UBS Group lifted their target price on shares of Netflix from $1,040.00 to $1,150.00 and gave the company a “buy” rating in a research note on Wednesday. Piper Sandler restated an “overweight” rating and issued a $1,100.00 price objective (up from $950.00) on shares of Netflix in a research report on Wednesday. BMO Capital Markets reiterated an “outperform” rating and set a $1,175.00 target price (up previously from $1,000.00) on shares of Netflix in a research report on Wednesday. Wells Fargo & Company boosted their price target on Netflix from $758.00 to $797.00 and gave the stock an “overweight” rating in a report on Friday, October 18th. Finally, Jefferies Financial Group increased their price objective on shares of Netflix from $780.00 to $800.00 and gave the company a “buy” rating in a report on Friday, October 18th. Nine research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $996.94.

Insider Activity

In related news, Chairman Reed Hastings sold 48,363 shares of the business’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $896.60, for a total transaction of $43,362,265.80. Following the completion of the sale, the chairman now directly owns 114 shares in the company, valued at approximately $102,212.40. The trade was a 99.76 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard N. Barton sold 6,364 shares of Netflix stock in a transaction on Tuesday, January 7th. The stock was sold at an average price of $879.38, for a total transaction of $5,596,374.32. Following the sale, the director now directly owns 246 shares in the company, valued at approximately $216,327.48. This trade represents a 96.28 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 152,198 shares of company stock worth $127,616,898 over the last three months. 1.76% of the stock is currently owned by corporate insiders.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Enzi Wealth lifted its position in Netflix by 3.4% in the 4th quarter. Enzi Wealth now owns 331 shares of the Internet television network’s stock valued at $316,000 after purchasing an additional 11 shares during the last quarter. TCI Wealth Advisors Inc. increased its stake in shares of Netflix by 1.6% in the fourth quarter. TCI Wealth Advisors Inc. now owns 700 shares of the Internet television network’s stock valued at $624,000 after purchasing an additional 11 shares during the period. Advisory Resource Group increased its stake in shares of Netflix by 0.7% in the third quarter. Advisory Resource Group now owns 1,746 shares of the Internet television network’s stock valued at $1,238,000 after purchasing an additional 12 shares during the period. Insight Wealth Strategies LLC raised its holdings in shares of Netflix by 1.9% during the fourth quarter. Insight Wealth Strategies LLC now owns 656 shares of the Internet television network’s stock valued at $585,000 after buying an additional 12 shares during the last quarter. Finally, Sunflower Bank N.A. boosted its position in shares of Netflix by 2.1% during the fourth quarter. Sunflower Bank N.A. now owns 575 shares of the Internet television network’s stock worth $513,000 after buying an additional 12 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Price Performance

The business has a fifty day moving average of $889.11 and a 200-day moving average of $763.41. The company has a debt-to-equity ratio of 0.62, a quick ratio of 1.13 and a current ratio of 1.13. The firm has a market capitalization of $420.99 billion, a P/E ratio of 49.67, a price-to-earnings-growth ratio of 1.41 and a beta of 1.27.

About Netflix

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.