Netflix, Inc. (NASDAQ:NFLX) Given Average Rating of “Moderate Buy” by Analysts

Netflix, Inc. (NASDAQ:NFLX) has earned an average recommendation of “Moderate Buy” from the fifty-five ratings firms that are covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, seventeen have given a hold rating, thirty-three have given a buy rating and four have issued a strong buy rating on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $103.4829.

A number of research analysts have weighed in on NFLX shares. Pivotal Research dropped their target price on shares of Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research note on Friday, July 17th. Stephens assumed coverage on shares of Netflix in a research note on Friday, July 17th. They set an “overweight” rating for the company. Citic Securities lifted their price target on shares of Netflix from $95.00 to $107.00 and gave the stock a “hold” rating in a report on Monday, April 27th. KeyCorp reiterated an “overweight” rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Finally, Wedbush dropped their price objective on Netflix from $118.00 to $105.00 and set an “outperform” rating on the stock in a research note on Friday, July 17th.

Netflix Trading Up 5.4%

NASDAQ NFLX opened at $78.24 on Friday. The business’s fifty day moving average is $74.75 and its 200-day moving average is $84.58. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The stock has a market capitalization of $325.79 billion, a price-to-earnings ratio of 24.63, a PEG ratio of 0.93 and a beta of 1.52. Netflix has a one year low of $65.08 and a one year high of $126.71.

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

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Pershing Square disclosed a new position of approximately 3.15 million Netflix shares, representing about 4.9% of its portfolio. Ackman said Netflix has effectively “won the streaming wars” and expects continued double-digit revenue growth and expanding margins. Reuters article
• Positive Sentiment: Investors are also emphasizing Netflix’s durable growth, scale of more than 325 million subscribers, strong profitability and potential advertising opportunity. Second-quarter revenue reached approximately $12.6 billion, up 13.4% year over year, while earnings per share modestly exceeded estimates. Zacks article
• Positive Sentiment: Netflix’s continued investment in live programming, including MLB-related events, is viewed as a way to attract audiences, strengthen advertising value and differentiate the service. The company also extended its “Seinfeld” content relationship for another five years. Yahoo Finance article
• Neutral Sentiment: Several investment commentaries argue that the stock’s decline has outpaced the business’s earnings growth, making its valuation more attractive relative to its long-term potential. However, analyst targets and opinions remain mixed, and a sustained recovery will depend on subscriber trends, advertising growth and margin execution. Motley Fool article
• Negative Sentiment: Recent insider activity remains a cautionary signal: reported open-market transactions show executives and other insiders selling shares, with no insider purchases over the past six months. Netflix also faces concerns about slowing growth and a still-premium valuation despite the recent sell-off. TipRanks article

Insider Transactions at Netflix

In other news, Director Richard N. Barton sold 2,160 shares of the company’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 transaction, the director owned 246 shares of the company’s stock, valued at $18,474.60. This represents a 89.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Theodore A. Sarandos sold 27,312 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer owned 178,954 shares of the company’s stock, valued at $13,126,275.90. The trade was a 13.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 600,295 shares of company stock valued at $49,056,671. 1.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Netflix

Several large investors have recently modified their holdings of NFLX. Pacific Sun Financial Corp raised its holdings in Netflix by 1.6% during the 3rd quarter. Pacific Sun Financial Corp now owns 574 shares of the Internet television network’s stock valued at $688,000 after acquiring an additional 9 shares during the period. Beaird Harris Wealth Management LLC boosted its holdings in shares of Netflix by 9.6% in the third quarter. Beaird Harris Wealth Management LLC now owns 114 shares of the Internet television network’s stock worth $137,000 after acquiring an additional 10 shares during the period. Monograph Wealth Advisors LLC grew its position in shares of Netflix by 1.8% in the second quarter. Monograph Wealth Advisors LLC now owns 682 shares of the Internet television network’s stock valued at $913,000 after purchasing an additional 12 shares in the last quarter. Resources Management Corp CT ADV grew its position in shares of Netflix by 2.0% in the second quarter. Resources Management Corp CT ADV now owns 829 shares of the Internet television network’s stock valued at $1,110,000 after purchasing an additional 16 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. raised its stake in shares of Netflix by 1.4% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 1,500 shares of the Internet television network’s stock valued at $2,009,000 after purchasing an additional 20 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.