Analysts Set Netflix, Inc. (NASDAQ:NFLX) PT at $103.48

Shares of Netflix, Inc. (NASDAQ:NFLX) have earned an average recommendation of “Moderate Buy” from the fifty-five brokerages that are currently covering the firm, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, seventeen have given a hold recommendation, thirty-three have issued a buy recommendation and four have assigned a strong buy recommendation to the company. The average 1 year price objective among brokers that have covered the stock in the last year is $103.4829.

NFLX has been the subject of several recent research reports. Weiss Ratings lowered Netflix from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, June 26th. Jefferies Financial Group lowered their price objective on Netflix from $128.00 to $110.00 and set a “buy” rating on the stock in a research report on Wednesday, June 10th. KGI Securities downgraded Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective for the company. in a research note on Friday, July 17th. Moffett Nathanson reduced their target price on shares of Netflix from $120.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, June 17th. Finally, Pivotal Research decreased their price objective on shares of Netflix from $96.00 to $70.00 and set a “hold” rating on the stock in a research report on Friday, July 17th.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix will exclusively premiere Grand Theft Auto VI: An Extended Look on August 27, six hours before its YouTube release. The high-profile Rockstar Games event could drive subscriber engagement, streaming traffic and broader attention to Netflix’s platform. GTA VI Extended Look to Debut on Netflix
• Positive Sentiment: Wall Street’s outlook remains moderately bullish despite NFLX’s weak recent performance. Analysts’ consensus rating is “Moderate Buy,” with an average price target of approximately $103.48, substantially above recent trading levels. Netflix Receives Moderate Buy Consensus
• Positive Sentiment: One valuation analysis estimates Netflix could be about 26% undervalued based on discounted-cash-flow and market-multiple models. A multiyear licensing agreement involving The Walking Dead universe may provide additional content and monetization opportunities. Netflix May Be Undervalued
• Neutral Sentiment: Netflix’s latest quarterly results were mixed: earnings per share narrowly beat estimates and revenue rose 13.4% year over year, but revenue slightly missed expectations. Investors may therefore remain focused on future growth and engagement trends.
• Negative Sentiment: CEO Gregory Peters sold 27,312 shares worth about $2.0 million, reducing his direct holdings by 18.42%. Director Richard Barton also sold 2,160 shares for approximately $162,000. Barton’s sale was made under a pre-arranged Rule 10b5-1 plan, limiting its significance, but the combined insider selling may still weigh on sentiment. Netflix Insider Selling
• Negative Sentiment: Netflix has underperformed the S&P 500 over the past year amid concerns about engagement, limited viewing-data disclosure and intensifying streaming competition. The shares also remain below their major moving averages, signaling continued technical pressure. Netflix Underperforms the S&P 500

Netflix Stock Performance

Netflix stock opened at $74.14 on Friday. 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 moving average of $75.32 and a 200-day moving average of $84.86. The firm has a market cap of $308.71 billion, a P/E ratio of 23.34, a P/E/G ratio of 0.93 and a beta of 1.52. Netflix has a 1-year low of $65.08 and a 1-year high of $126.71.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business’s revenue was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.72 EPS. Sell-side analysts expect that Netflix will post 3.59 EPS for the current year.

Insider Transactions at Netflix

In related news, insider David A. Hyman sold 5,723 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the sale, the insider owned 316,100 shares in the company, valued at approximately $23,027,885. This represents a 1.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the transaction, the chief executive officer directly owned 178,954 shares in the company, valued at approximately $13,126,275.90. This represents a 13.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 591,047 shares of company stock worth $48,355,766. 1.24% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Netflix

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Turning Point Benefit Group Inc. grew its holdings in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock valued at $25,000 after buying an additional 268 shares during the last quarter. Imprint Wealth LLC purchased a new position in Netflix in the 3rd quarter worth $25,000. Cornerstone Financial Management LLC purchased a new position in Netflix in the 4th quarter worth $26,000. Atlas Capital Advisors Inc. acquired a new stake in Netflix during the 4th quarter worth about $26,000. Finally, Jessup Wealth Management Inc acquired a new stake in Netflix during the 4th quarter worth about $27,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

About Netflix

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.