Zacks Investment Research Lowers Netflix Inc. (NFLX) to Hold
Netflix Inc. (NASDAQ:NFLX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Rumors regarding a possible merger between Netflix and Disney surfaced recently. It appears that Disney and a few other suitors are willing to court Netflix as it gains momentum as a premium content provider. Last month, CFO David Wells had stated that Netflix’s library will boast 50:50 ratio of original and acquired content over the next few years. However, the ongoing ‘un-grandfathering’ or increase in subscription rates for Netflix’s older domestic customers is likely to have a telling effect on its near-term performance. Also, investments in original/acquired content, though a drag on profitability at present, will be accretive to long-term growth. Estimates have been stable ahead of the company’s third quarter earnings release.”
NFLX has been the topic of several other reports. Vetr lowered Netflix from a “buy” rating to a “hold” rating and set a $105.94 price target on the stock. in a research report on Monday. Wedbush restated an “underperform” rating and set a $45.00 price target on shares of Netflix in a research report on Friday. JPMorgan Chase & Co. raised their price target on Netflix from $116.00 to $125.00 and gave the stock an “overweight” rating in a research report on Tuesday, September 27th. Jefferies Group restated an “underperform” rating and set a $76.00 price target on shares of Netflix in a research report on Friday, September 23rd. Finally, RBC Capital Markets restated a “buy” rating on shares of Netflix in a research report on Thursday, September 15th. Seven research analysts have rated the stock with a sell rating, fourteen have given a hold rating and twenty-six have issued a buy rating to the company’s stock. Netflix currently has a consensus rating of “Hold” and a consensus target price of $110.66.
Shares of Netflix (NASDAQ:NFLX) opened at 102.63 on Tuesday. Netflix has a 12-month low of $79.95 and a 12-month high of $133.27. The company has a market cap of $44.00 billion, a P/E ratio of 320.72 and a beta of 1.14. The stock’s 50 day moving average price is $97.18 and its 200 day moving average price is $96.16.
Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Monday, July 18th. The Internet television network reported $0.09 EPS for the quarter, beating the consensus estimate of $0.02 by $0.07. The firm had revenue of $2.11 billion for the quarter, compared to analyst estimates of $2.11 billion. Netflix had a return on equity of 5.59% and a net margin of 1.85%. The company’s revenue was up 19.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.06 EPS. On average, analysts forecast that Netflix will post $0.29 EPS for the current year.
In related news, Director Richard N. Barton sold 700 shares of Netflix stock in a transaction dated Wednesday, July 6th. The stock was sold at an average price of $95.03, for a total value of $66,521.00. Following the sale, the director now directly owns 15,562 shares in the company, valued at approximately $1,478,856.86. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jay C. Hoag acquired 600,000 shares of the stock in a transaction that occurred on Monday, July 25th. The stock was purchased at an average price of $86.43 per share, for a total transaction of $51,858,000.00. The disclosure for this purchase can be found here. 4.90% of the stock is owned by corporate insiders.
Large investors have recently bought and sold shares of the company. Meiji Yasuda Asset Management Co Ltd. boosted its stake in Netflix by 16.4% in the first quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,201 shares of the Internet television network’s stock valued at $225,000 after buying an additional 310 shares during the last quarter. AMF Pensionsforsakring AB raised its position in Netflix by 280.3% in the first quarter. AMF Pensionsforsakring AB now owns 265,621 shares of the Internet television network’s stock worth $27,154,000 after buying an additional 195,771 shares during the period. Motley Fool Wealth Management LLC raised its position in Netflix by 3.6% in the first quarter. Motley Fool Wealth Management LLC now owns 30,876 shares of the Internet television network’s stock worth $3,156,000 after buying an additional 1,073 shares during the period. Aviva PLC raised its position in Netflix by 2.0% in the first quarter. Aviva PLC now owns 224,856 shares of the Internet television network’s stock worth $22,987,000 after buying an additional 4,389 shares during the period. Finally, Cannell Peter B & Co Inc raised its position in Netflix by 15.5% in the first quarter. Cannell Peter B & Co Inc now owns 4,465 shares of the Internet television network’s stock worth $456,000 after buying an additional 600 shares during the period. Institutional investors own 78.43% of the company’s stock.
Netflix Company Profile
Netflix, Inc (Netflix) is a provider of Internet television network. The Company’s members can watch original series, documentaries and feature films in Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly membership fees for services consisting of streaming content.
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