Netflix (NASDAQ:NFLX) Upgraded to Strong-Buy at Jefferies Financial Group

Jefferies Financial Group upgraded shares of Netflix (NASDAQ:NFLX) to a strong-buy rating in a report issued on Thursday,Zacks reports.

NFLX has been the subject of several other reports. Phillip Securities upgraded Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price target for the company in a research report on Sunday, July 19th. CICC Research decreased their price objective on Netflix from $110.00 to $90.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 21st. DZ Bank reissued a “buy” rating on shares of Netflix in a report on Monday, July 20th. Evercore reissued an “outperform” rating and set a $110.00 price objective (up from $100.00) on shares of Netflix in a report on Monday, September 14th. Finally, UBS Group cut their target price on Netflix from $130.00 to $115.00 and set a “buy” rating for the company in a research note on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fifteen have given a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $94.41.

Netflix Stock Up 2.9%

Netflix stock opened at $72.61 on Thursday. Netflix has a 1-year low of $65.08 and a 1-year high of $124.86. The firm has a market capitalization of $302.34 billion, a price-to-earnings ratio of 22.85, a P/E/G ratio of 1.00 and a beta of 1.62. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm has a 50 day simple moving average of $75.25 and a 200 day simple moving average of $80.73.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The business had revenue of $12.56 billion for 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 business’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.72 EPS. On average, analysts predict that Netflix will post 3.59 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider David A. Hyman sold 5,723 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the transaction, the insider directly owned 316,100 shares in the company, valued at $23,027,885. The trade was a 1.78% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Richard N. Barton sold 720 shares of the business’s stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction of $54,194.40. Following the transaction, the director owned 2,460 shares of the company’s stock, valued at $185,164.20. This trade represents a 22.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 179,045 shares of company stock worth $13,132,194. Company insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several large investors have recently added to or reduced their stakes in the business. Merkkuri Wealth Advisors LLC bought a new position in Netflix in the 1st quarter worth about $31,000. Bayban boosted its position in shares of Netflix by 400.0% during the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after acquiring an additional 280 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd bought a new stake in shares of Netflix during the 2nd quarter valued at about $26,000. Bank of New Hampshire grew its holdings in shares of Netflix by 900.0% during the fourth quarter. Bank of New Hampshire now owns 380 shares of the Internet television network’s stock worth $36,000 after purchasing an additional 342 shares in the last quarter. Finally, Compound Global Advisors LLC purchased a new position in shares of Netflix during the second quarter worth about $29,000. Institutional investors own 80.93% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and an $85 price target, citing potential revenue support from subscription-price increases and advertising. Netflix stock gets bullish analyst call ahead of next week’s earnings
• Positive Sentiment: Netflix named former Disney and Fox executive Peter Rice as chief content officer, replacing Bela Bajaria. Rice’s experience could help Netflix improve its content strategy and viewer engagement as competition intensifies. Netflix names former Disney executive Rice as new content chief
• Neutral Sentiment: Netflix will release third-quarter results on October 20. Wall Street estimates for revenue, earnings and operating metrics may drive volatility as investors look for evidence that pricing, advertising and content investments are offsetting weaker engagement. Ahead of Netflix Q3 earnings
• Negative Sentiment: Netflix is eliminating roughly 1,000 positions, or 6% of its workforce, its largest reduction since 2022. Management described the move as a resource-allocation and efficiency effort, but investors may view it as evidence of slowing growth and pressure to control costs. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Reports citing app data indicate U.S. churn has risen and viewing engagement has weakened. Those trends raise questions about Netflix’s ability to retain subscribers amid competition from other streaming services, YouTube and creator-led video. Netflix warning signs ahead of Q3 earnings

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.