Netflix (NASDAQ:NFLX) Upgraded to Strong-Buy at China Intl Cap

Netflix (NASDAQ:NFLX) was upgraded by stock analysts at China Intl Cap to a “strong-buy” rating in a report issued on Tuesday,Zacks.com reports.

Other equities analysts have also issued reports about the stock. Deutsche Bank Aktiengesellschaft set a $110.00 target price on shares of Netflix in a report on Monday. Stephens assumed coverage on shares of Netflix in a report on Friday. They set an “overweight” rating on the stock. Phillip Securities upgraded shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday. Raymond James Financial reaffirmed a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. Finally, Citizens Jmp reiterated a “market perform” rating on shares of Netflix in a research report on Wednesday, April 15th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $104.21.

Netflix Stock Performance

NASDAQ NFLX opened at $68.67 on Tuesday. The firm has a market capitalization of $285.94 billion, a P/E ratio of 21.61, a PEG ratio of 0.85 and a beta of 1.52. The stock has a 50-day simple moving average of $79.42 and a two-hundred day simple moving average of $86.49. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.41 and a current ratio of 1.14. Netflix has a fifty-two week low of $65.08 and a fifty-two week high of $126.71.

Netflix (NASDAQ:NFLX) last posted its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.Netflix’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period last year, the company earned $0.72 earnings per share. On average, equities analysts forecast that Netflix will post 3.6 earnings per share for the current year.

Insider Buying and Selling

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the company’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $6,563,353.65. This represents a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Reed Hastings sold 386,700 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the transaction, the director directly owned 3,940 shares in the company, valued at approximately $338,721.80. The trade was a 98.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 899,839 shares of company stock worth $80,141,661 in the last 90 days. 1.24% of the stock is owned by insiders.

Hedge Funds Weigh In On Netflix

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

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix delivered an earnings beat and continues to post double-digit revenue growth, while bulls argue the selloff has made the stock look inexpensive on earnings and cash flow. Netflix “Is Not a Broken Company” and Trades At Just 19x Earnings. Jim Cramer Says Start Buying
• Positive Sentiment: Several analysts and commentators say the post-earnings drop may have created a buying opportunity, citing Netflix’s ad business, live content ambitions, international growth, and strong free-cash-flow potential. Netflix (NFLX) Stock Still Looks Cheap On Cash Flow And Earnings
• Positive Sentiment: Phillip Securities upgraded Netflix from “moderate buy” to “strong-buy,” with one analyst saying engagement shows no signs of slowing and setting a higher price target than the current trading level. Netflix, Inc. (NFLX) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Wall Street coverage remains active and largely mixed-to-bullish, with some reports pointing to meaningful upside in consensus price targets even after the recent slide. Netflix Fell 45% Over 12 Months But This Ratings House Sees A Doubling Share Price
• Negative Sentiment: Investors are worried about softer revenue guidance, slowing growth momentum, and Netflix making viewership metrics harder to track, which raises questions about transparency and future monetization. Netflix (NFLX) Could Be 18% Undervalued After Soft Guidance Raised Fresh Growth Questions
• Negative Sentiment: Multiple articles described the stock’s recent action as a sharp post-earnings crash or “miserable stretch,” reflecting concern that the latest quarter did not convince investors that growth will reaccelerate soon. Netflix just made its slowdown harder to measure

About Netflix

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.