Netflix’s (NFLX) Neutral Rating Reiterated at Rosenblatt Securities

Netflix (NASDAQ:NFLX)‘s stock had its “neutral” rating reaffirmed by equities research analysts at Rosenblatt Securities in a report issued on Friday, Benzinga reports. They presently have a $75.00 price objective on the Internet television network’s stock. Rosenblatt Securities’ price target suggests a potential upside of 6.34% from the stock’s previous close.

A number of other equities research analysts have also recently commented on NFLX. CICC Research decreased their price target on Netflix from $110.00 to $90.00 and set an “outperform” rating for the company in a research note on Tuesday, July 21st. Morgan Stanley decreased their price target on Netflix from $83.00 to $80.00 and set an “overweight” rating for the company in a research note on Thursday, October 8th. HSBC cut Netflix from a “buy” rating to a “hold” rating and decreased their price target for the company from $96.00 to $76.00 in a research note on Tuesday, September 22nd. Wolfe Research reiterated an “outperform” rating and issued a $95.00 price target (up from $84.00) on shares of Netflix in a research note on Tuesday, August 25th. Finally, 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 note on Sunday, July 19th. Four research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fifteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and an average target price of $93.82.

Netflix Stock Down 2.9%

NFLX stock traded down $2.08 during trading on Friday, reaching $70.53. 44,092,721 shares of the company traded hands, compared to its average volume of 42,269,742. Netflix has a 12 month low of $65.08 and a 12 month high of $124.86. The business has a 50 day simple moving average of $75.25 and a 200 day simple moving average of $80.73. The company has a market capitalization of $293.68 billion, a price-to-earnings ratio of 22.20, a price-to-earnings-growth ratio of 1.00 and a beta of 1.62. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter last year, the company earned $0.72 earnings per share. The firm’s revenue for the quarter was up 13.4% compared to the same quarter last year. On average, equities research analysts anticipate that Netflix will post 3.59 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the sale, the chief executive officer directly owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. Also, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider directly owned 316,100 shares in the company, valued at approximately $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 179,045 shares of company stock valued at $13,132,194 over the last 90 days. Company insiders own 1.24% of the company’s stock.

Institutional Trading of Netflix

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. American Capital Advisory LLC increased its stake in shares of Netflix by 0.8% during the first quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock valued at $1,345,000 after purchasing an additional 109 shares in the last quarter. CWS Financial Advisors LLC lifted its holdings in shares of Netflix by 3.2% during the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock valued at $347,000 after purchasing an additional 112 shares during the last quarter. Warner Group LLC lifted its holdings in shares of Netflix by 2.2% during the first quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock valued at $503,000 after purchasing an additional 114 shares during the last quarter. Financial Avengers Inc. lifted its holdings in shares of Netflix by 9.8% during the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after purchasing an additional 115 shares during the last quarter. Finally, PAX Financial Group LLC lifted its holdings in shares of Netflix by 2.5% during the first quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock valued at $466,000 after purchasing an additional 116 shares during the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies upgraded Netflix (NFLX) to “strong buy,” citing potential support from pricing increases and advertising growth. Wedbush also maintained an “outperform” rating, although it lowered its price target to $90 from $105. Netflix stock gets bullish analyst call
• Positive Sentiment: Options activity is signaling expectations for a substantial post-earnings move, while sentiment remains bullish in some derivatives markets. Technical analysts also see a possible double-bottom pattern, with a break above $83.60 potentially opening a path toward $102.12. Barchart Netflix earnings outlook
• Neutral Sentiment: Netflix is replacing Chief Content Officer Bela Bajaria with former Disney and Fox executive Peter Rice. His experience across scripted programming, live sports, unscripted content and theatrical distribution could help Netflix develop new hits, but the abrupt change before earnings highlights pressure to improve engagement. Netflix appoints Peter Rice
• Negative Sentiment: Netflix announced plans to eliminate about 1,000 jobs, or 6% of its workforce, one day before the content-chief transition. Although the cuts may improve efficiency, investors viewed them as evidence of a sharper growth reset and concerns about the company’s content strategy. Netflix shares under pressure after content chief departure
• Negative Sentiment: Pre-earnings concerns include slowing viewership, rising churn, declining engagement and intensifying competition. Analysts also warn that Netflix’s premium valuation leaves little room for disappointing guidance, while options traders anticipate a move that could take the stock toward a two-year low. Netflix Q3 earnings outlook

About Netflix

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.