Netflix (NASDAQ:NFLX) Rating Increased to Strong-Buy at Phillip Securities

Netflix (NASDAQ:NFLX) was upgraded by stock analysts at Phillip Securities from a “moderate buy” rating to a “strong-buy” rating in a note issued to investors on Sunday,Zacks.com reports.

A number of other analysts also recently commented on NFLX. Wedbush cut their price objective on shares of Netflix from $118.00 to $105.00 and set an “outperform” rating for the company in a report on Friday. Moffett Nathanson lowered their target price on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, June 17th. Sanford C. Bernstein set a $95.00 price target on Netflix and gave the company an “outperform” rating in a research report on Friday. Needham & Company LLC reaffirmed a “buy” rating on shares of Netflix in a report on Friday, April 17th. Finally, JPMorgan Chase & Co. reduced their price objective on Netflix from $118.00 to $85.00 and set an “overweight” rating on the stock in a research report on Friday. Three analysts have rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, seventeen have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $104.21.

Netflix Trading Down 2.0%

Shares of NFLX opened at $67.60 on Friday. Netflix has a 52-week low of $65.08 and a 52-week high of $126.71. The stock has a market cap of $284.65 billion, a PE ratio of 21.28, a price-to-earnings-growth ratio of 0.88 and a beta of 1.52. The firm’s fifty day moving average is $79.80 and its two-hundred day moving average is $86.67. The company has a quick ratio of 1.41, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last issued 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. The business had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company’s quarterly revenue was up 13.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.72 earnings per share. Research analysts forecast that Netflix will post 3.6 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other news, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the sale, the chief executive officer owned 284,804 shares of the company’s stock, valued at approximately $25,054,207.88. This represents a 8.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the sale, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. This trade represents a 31.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 899,839 shares of company stock valued at $80,141,661 over the last ninety days. 1.24% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in NFLX. Imprint Wealth LLC purchased a new position in shares of Netflix during the third quarter worth about $25,000. Wealth Watch Advisors INC acquired a new stake in shares of Netflix in the third quarter valued at approximately $103,000. Strategic Wealth Investment Group LLC acquired a new position in shares of Netflix in the 2nd quarter valued at $121,000. Wiser Advisor Group LLC purchased a new position in Netflix during the 3rd quarter worth $114,000. Finally, Beaird Harris Wealth Management LLC increased its stake in Netflix by 9.6% in the third 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. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Phillip Securities upgraded Netflix to Buy and set a $110 target, arguing that engagement shows “no signs of slowing” despite the selloff. Netflix Stock Forecast Gets Hiked from Hold to Buy as Analyst Sees ‘No Signs of Slowing Engagement’
• Positive Sentiment: Several bullish commentaries say the post-earnings drop may have created a buy-the-dip opportunity, pointing to Netflix’s scale, ad growth, and possible upside if management executes. Netflix Crashes to a 52-Week Low After Earnings. Why This Is the Best Time to Buy NFLX Stock.
• Neutral Sentiment: Netflix is pushing employees toward “AI fluency,” which signals a broader effort to use artificial intelligence internally, but the near-term stock impact is unclear. Netflix’s top product exec says all employees should have an ‘aspiration for AI fluency’
• Negative Sentiment: Recent earnings coverage highlights a revenue miss, weaker Q3 outlook, and concerns that growth is slowing, which helped drive the stock to fresh lows. Netflix’s Post-Earnings Crash: Should You Buy the Stock While It’s Below $70?
• Negative Sentiment: Multiple analysts have cut price targets or turned cautious, reinforcing the market’s concern that Netflix’s growth narrative is weakening. Why Is Netflix Stock Falling Monday?

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.