Netflix Inc. (NFLX) Upgraded to Buy at Zacks Investment Research
Zacks Investment Research upgraded shares of Netflix Inc. (NASDAQ:NFLX) from a hold rating to a buy rating in a research report released on Wednesday. Zacks Investment Research currently has $127.00 price target on the Internet television network’s stock.
According to Zacks, “Netflix has been drawing strength from its growing portfolio of original content with special emphasis on kids and family content. Netflix is committed to make 50% its total content original over the next few years. This apart, it remains focused on international expansion as it battles slowing domestic subscriber growth to solidify presence in its operating markets. The streaming giant delivered solid third-quarter 2016 results, exceeding its earlier projections on all key counts. Not only were the earnings and revenues better than expected, new subscribers growth also remained robust. In addition, the company also gave a decent guidance for the current quarter especially for international subscriber additions. However, investments in original/acquired content remain a drag on profitability at present. In addition, stiffening competition from peers can pose some challenges. “
NFLX has been the subject of a number of other research reports. Vetr upgraded Netflix from a hold rating to a buy rating and set a $102.90 target price for the company in a report on Tuesday, September 20th. Cantor Fitzgerald reiterated a buy rating on shares of Netflix in a report on Friday, September 9th. FBR & Co restated a market perform rating and issued a $90.00 price target on shares of Netflix in a report on Thursday, September 15th. Wedbush set a $45.00 price target on Netflix and gave the stock a sell rating in a report on Thursday, October 13th. Finally, RBC Capital Markets restated an outperform rating and issued a $130.00 price target on shares of Netflix in a report on Monday, August 29th. Eight analysts have rated the stock with a sell rating, thirteen have given a hold rating and twenty-nine have issued a buy rating to the company’s stock. The company currently has an average rating of Hold and an average price target of $117.91.
Netflix (NASDAQ:NFLX) traded down 0.0259% during mid-day trading on Wednesday, reaching $115.1602. 3,412,004 shares of the company’s stock were exchanged. The company has a market capitalization of $49420.42 billion, a P/E ratio of 311.2438 and a beta of 1.81. The company’s 50 day moving average price is $113.95 and its 200-day moving average price is $99.64. Netflix has a 52 week low of $79.95 and a 52 week high of $133.27.
Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Monday, October 17th. The Internet television network reported $0.12 EPS for the quarter, beating the Zacks’ consensus estimate of $0.06 by $0.06. Netflix had a net margin of 1.99% and a return on equity of 6.31%. The company earned $2.29 billion during the quarter, compared to the consensus estimate of $2.28 billion. During the same quarter in the prior year, the company posted $0.07 EPS. The company’s quarterly revenue was up 31.7% compared to the same quarter last year. On average, equities research analysts expect that Netflix will post $0.40 earnings per share for the current fiscal year.
In other Netflix news, CEO Reed Hastings sold 102,340 shares of the company’s stock in a transaction dated Monday, August 22nd. The shares were sold at an average price of $95.21, for a total transaction of $9,743,791.40. Following the completion of the sale, the chief executive officer now directly owns 102,340 shares in the company, valued at $9,743,791.40. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Timothy M. Haley sold 23,728 shares of the company’s stock in a transaction dated Monday, October 31st. The shares were sold at an average price of $126.14, for a total transaction of $2,993,049.92. Following the sale, the director now owns 9,576 shares of the company’s stock, valued at $1,207,916.64. The disclosure for this sale can be found here. Company insiders own 4.90% of the company’s stock.
Institutional investors have recently modified their holdings of the stock. Capital Research Global Investors increased its position in shares of Netflix by 3.6% in the third quarter. Capital Research Global Investors now owns 51,745,376 shares of the Internet television network’s stock valued at $5,099,507,000 after buying an additional 1,777,574 shares during the period. Vanguard Group Inc. increased its position in shares of Netflix by 2.0% in the second quarter. Vanguard Group Inc. now owns 25,054,115 shares of the Internet television network’s stock valued at $2,291,951,000 after buying an additional 484,692 shares during the period. BlackRock Institutional Trust Company N.A. increased its position in shares of Netflix by 2.0% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 11,042,343 shares of the Internet television network’s stock valued at $1,088,223,000 after buying an additional 211,402 shares during the period. Baillie Gifford & Co. increased its position in shares of Netflix by 4.5% in the second quarter. Baillie Gifford & Co. now owns 7,316,440 shares of the Internet television network’s stock valued at $669,307,000 after buying an additional 314,275 shares during the period. Finally, Capital World Investors increased its position in shares of Netflix by 7.9% in the third quarter. Capital World Investors now owns 7,182,812 shares of the Internet television network’s stock valued at $707,866,000 after buying an additional 525,886 shares during the period. 77.56% of the stock is owned by hedge funds and other institutional investors.
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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