Netflix, Inc. (NFLX) Stock Rating Lowered by Zacks Investment Research
Netflix, Inc. (NASDAQ:NFLX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Netflix’s growing subscriber base is the primary factor that helps it generate significant revenues. The company’s investments in regional programming help it to draw more international subscribers. The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 109.3 million subscribers globally. We believe continuing subscriber addition and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward. In the past one year, Netflix shares have vastly outperformed the industry. However, higher investments on original/acquired content will continue to hurt profitability, at least in the near term. International expansion and content additions also resulted in cost escalations in the form of technology investments and marketing expenses. Stringent competition from other well-established players also poses a major concern.”
NFLX has been the topic of several other research reports. Sanford C. Bernstein set a $203.00 price target on shares of Netflix and gave the stock a “buy” rating in a report on Wednesday, August 30th. Citigroup Inc. upped their price target on shares of Netflix from $180.00 to $205.00 and gave the stock a “neutral” rating in a report on Friday, October 13th. Vetr cut shares of Netflix from a “sell” rating to a “strong sell” rating and set a $162.49 price target on the stock. in a report on Monday, September 18th. Robert W. Baird reaffirmed a “hold” rating and issued a $175.00 price target on shares of Netflix in a report on Friday, September 1st. Finally, Morgan Stanley set a $210.00 price target on shares of Netflix and gave the stock a “buy” rating in a report on Tuesday, July 18th. One equities research analyst has rated the stock with a sell rating, eighteen have assigned a hold rating and thirty-two have given a buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average target price of $207.20.
Shares of Netflix (NASDAQ NFLX) traded up $3.39 during mid-day trading on Wednesday, reaching $195.51. 5,678,300 shares of the company’s stock were exchanged, compared to its average volume of 6,701,712. The company has a debt-to-equity ratio of 1.47, a current ratio of 1.20 and a quick ratio of 1.20. Netflix has a 1-year low of $113.51 and a 1-year high of $204.38. The company has a market cap of $83,490.00, a PE ratio of 194.06, a price-to-earnings-growth ratio of 5.71 and a beta of 1.39.
Netflix (NASDAQ:NFLX) last issued its earnings results on Monday, October 16th. The Internet television network reported $0.29 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.03). Netflix had a net margin of 4.04% and a return on equity of 14.56%. The business had revenue of $2.99 billion for the quarter, compared to the consensus estimate of $2.97 billion. During the same period in the previous year, the firm earned $0.12 EPS. The company’s revenue was up 30.3% compared to the same quarter last year. analysts forecast that Netflix will post 1.26 EPS for the current fiscal year.
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In other Netflix news, Director Richard N. Barton sold 700 shares of Netflix stock in a transaction on Thursday, November 2nd. The shares were sold at an average price of $197.38, for a total value of $138,166.00. Following the sale, the director now directly owns 7,362 shares in the company, valued at approximately $1,453,111.56. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Reed Hastings sold 93,380 shares of Netflix stock in a transaction on Monday, August 21st. The shares were sold at an average price of $166.07, for a total transaction of $15,507,616.60. Following the completion of the sale, the chief executive officer now owns 93,380 shares in the company, valued at $15,507,616.60. The disclosure for this sale can be found here. Insiders have sold a total of 344,072 shares of company stock worth $63,582,550 over the last 90 days. Insiders own 4.90% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Salem Investment Counselors Inc. grew its stake in shares of Netflix by 161.0% in the 3rd quarter. Salem Investment Counselors Inc. now owns 15,967 shares of the Internet television network’s stock worth $2,837,000 after buying an additional 9,850 shares in the last quarter. Moors & Cabot Inc. purchased a new position in shares of Netflix in the 3rd quarter worth $215,000. Cetera Investment Advisers grew its stake in shares of Netflix by 41.4% in the 3rd quarter. Cetera Investment Advisers now owns 4,410 shares of the Internet television network’s stock worth $797,000 after buying an additional 1,292 shares in the last quarter. IFM Investors Pty Ltd grew its stake in shares of Netflix by 3.5% in the 3rd quarter. IFM Investors Pty Ltd now owns 12,073 shares of the Internet television network’s stock worth $2,189,000 after buying an additional 406 shares in the last quarter. Finally, Yellowstone Partners LLC purchased a new position in shares of Netflix in the 3rd quarter worth $257,000. Institutional investors own 80.43% of the company’s stock.
Netflix, Inc is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States.
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