Netflix (NASDAQ:NFLX) Cut to Hold at HSBC

HSBC downgraded shares of Netflix (NASDAQ:NFLX) from a buy rating to a hold rating in a research note issued to investors on Tuesday morning, MarketBeat reports. They currently have $76.00 price objective on the Internet television network’s stock, down from their previous price objective of $96.00.

NFLX has been the topic of several other reports. UBS Group lowered their price objective on shares of Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. President Capital reduced their target price on shares of Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a report on Monday, July 20th. CICC Research decreased their target price on shares of Netflix from $110.00 to $90.00 and set an “outperform” rating for the company in a research note on Tuesday, July 21st. Daiwa Securities Group lowered their price target on Netflix from $102.00 to $76.00 and set an “outperform” rating on the stock in a report on Wednesday, July 22nd. Finally, Oppenheimer set a $85.00 price target on Netflix and gave the stock an “outperform” rating in a report on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $95.51.

Netflix Trading Up 0.5%

NFLX opened at $71.72 on Tuesday. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. Netflix has a 52 week low of $65.08 and a 52 week high of $124.86. The business’s 50 day moving average is $75.68 and its two-hundred day moving average is $83.29. The firm has a market cap of $298.64 billion, a price-to-earnings ratio of 22.57, a price-to-earnings-growth ratio of 1.02 and a beta of 1.53.

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

Insider Activity at Netflix

In other Netflix news, CEO Gregory Peters sold 27,312 shares of the company’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the completion of the transaction, the chief executive officer owned 120,931 shares in the company, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Theodore Sarandos sold 105,850 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $73.03, for a total transaction of $7,730,225.50. Following the completion of the sale, the chief executive officer owned 206,266 shares of the company’s stock, valued at $15,063,605.98. This trade represents a 33.91% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. Insiders have sold 179,045 shares of company stock worth $13,132,194 in the last 90 days. Corporate insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Hedge funds have recently added to or reduced their stakes in the company. Cornerstone Financial Management LLC acquired a new stake in shares of Netflix in the 4th quarter valued at approximately $26,000. Core Wealth Advisors LLC acquired a new position in Netflix during the fourth quarter worth $28,000. Evolution Wealth Management Inc. grew its holdings in Netflix by 2,284.6% during the fourth quarter. Evolution Wealth Management Inc. now owns 310 shares of the Internet television network’s stock worth $29,000 after acquiring an additional 297 shares during the period. Merkkuri Wealth Advisors LLC purchased a new position in Netflix in the first quarter worth $31,000. Finally, Cedar Mountain Advisors LLC raised its position in Netflix by 712.5% in the fourth quarter. Cedar Mountain Advisors LLC now owns 325 shares of the Internet television network’s stock worth $30,000 after acquiring an additional 285 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company’s stock.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: UK advertising momentum and live-event strategy provide potential catalysts. Netflix said its UK expansion helped its ad-supported plan reach approximately 14 million viewers globally. The company also secured the Tyson Fury–Anthony Joshua heavyweight fight for December 11, which could boost engagement and advertising appeal. Netflix UK advertising expansion article
• Positive Sentiment: Disney’s streaming price increases may improve Netflix’s relative value. Disney raised prices across Disney+ and Hulu tiers, bringing its premium offering closer to Netflix’s pricing and potentially giving Netflix more room to emphasize its content breadth and value proposition. Disney streaming price increase article
• Neutral Sentiment: Valuation has become more attractive after the selloff. Some investors view Netflix’s double-digit revenue growth, strong profitability, and lower share price as an opportunity. Steve Weiss of Short Hills Capital Partners reportedly bought shares after the recent decline, although this reflects one investor’s view rather than a broad shift in analyst sentiment. Investor buys Netflix shares article
• Negative Sentiment: HSBC downgraded Netflix from Buy to Hold and cut its engagement expectations. HSBC cited YouTube’s growing share of television viewing, declining engagement trends, and a roughly $76 price target that leaves limited upside. Wells Fargo also previously downgraded the stock, adding to pressure on the shares. HSBC Netflix downgrade article
• Negative Sentiment: Revenue growth has slowed for two consecutive quarters. Growth declined from a 17.6% peak to 13.4%, and management’s outlook indicates further moderation. Investors are concerned that Netflix’s transition toward advertising, live sports, and original content may not offset slower core subscription growth. Netflix revenue growth slowdown article
• Negative Sentiment: YouTube is increasingly viewed as a structural competitive threat. Reports cite YouTube’s 14.2% share of TV viewing and new tools designed to retain creators, raising concerns that Netflix is losing viewing time and facing greater difficulty attracting audiences and advertising dollars. Netflix downgraded as YouTube gains viewers article

About Netflix

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.