Netflix (NASDAQ:NFLX) Shares Up 1.5% on Analyst Upgrade

Netflix, Inc. (NASDAQ:NFLX)’s share price was up 1.5% during mid-day trading on Tuesday after Deutsche Bank Aktiengesellschaft upgraded the stock from a hold rating to a buy rating. Deutsche Bank Aktiengesellschaft now has a $95.00 price target on the stock, down from their previous price target of $100.00. Netflix traded as high as $71.36 and last traded at $70.30. 33,178,509 shares traded hands during trading, a decline of 22% from the average daily volume of 42,684,109 shares. The stock had previously closed at $69.23.

A number of other research analysts have also recently issued reports on NFLX. President Capital decreased their price objective on shares of Netflix from $134.00 to $83.00 and set a “buy” rating on the stock in a research note on Monday, July 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Netflix in a report on Tuesday, September 22nd. Piper Sandler reaffirmed an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a research note on Friday, July 17th. CLSA assumed coverage on Netflix in a research note on Monday, July 20th. They set an “outperform” rating for the company. Finally, KGI Securities lowered shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target on the stock. in a report on Friday, July 17th. Four 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 assigned a Sell rating to the stock. According to data from MarketBeat, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $95.15.

Insider Activity

In other news, CFO Spencer Neumann sold 9,248 shares of Netflix stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the transaction, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Gregory Peters sold 27,312 shares of the business’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the completion of the transaction, the chief executive officer directly owned 120,931 shares in the company, valued at $8,893,265.74. This represents a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 179,045 shares of company stock worth $13,132,194. 1.24% of the stock is owned by insiders.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Deutsche Bank upgraded Netflix to Buy from Hold/Neutral, arguing that the roughly 26% year-to-date decline has created an attractive entry point. The bank set a $95 price target, reduced from $100 but still implying substantial upside from recent levels. Deutsche Bank upgrades Netflix to Buy
• Positive Sentiment: The upgrade emphasizes Netflix’s underappreciated international growth, global production footprint and engagement trends outside the United States. Deutsche Bank believes investors are focusing too heavily on weaker U.S. viewing while overlooking the company’s overseas competitive advantages. Deutsche Bank turns bullish on Netflix
• Positive Sentiment: Analysts also cited Netflix’s potential in advertising, artificial intelligence and global content. The view is that the current valuation does not fully reflect longer-term growth or operating leverage, helping drive the stock’s rebound after a difficult September. Netflix growth undervalued despite global content and AI
• Neutral Sentiment: Netflix’s planned selective push into live sports and events could provide additional engagement and advertising opportunities, but management is not pursuing a broad sports-rights strategy, so the near-term financial impact is uncertain. Netflix sports strategy
• Negative Sentiment: The bullish call came with an unusual caveat: Deutsche Bank lowered its price target and trimmed some estimates. Analysts remain concerned about weaker viewing, a lack of breakout titles and slowing growth ahead of Netflix’s third-quarter results. Netflix upgrade with a lower target

Hedge Funds Weigh In On Netflix

A number of institutional investors and hedge funds have recently modified their holdings of the business. Cornerstone Financial Management LLC bought a new stake in shares of Netflix in the 4th quarter valued at $26,000. Core Wealth Advisors LLC bought a new position in Netflix during the fourth quarter worth $28,000. Evolution Wealth Management Inc. grew its holdings in Netflix by 2,284.6% in the fourth quarter. Evolution Wealth Management Inc. now owns 310 shares of the Internet television network’s stock worth $29,000 after purchasing an additional 297 shares during the period. Merkkuri Wealth Advisors LLC acquired a new stake in Netflix in the first quarter worth $31,000. Finally, Cedar Mountain Advisors LLC grew its holdings in Netflix by 712.5% in the fourth quarter. Cedar Mountain Advisors LLC now owns 325 shares of the Internet television network’s stock worth $30,000 after purchasing an additional 285 shares during the period. 80.93% of the stock is currently owned by institutional investors.

Netflix Trading Up 1.5%

The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The stock has a market capitalization of $292.72 billion, a P/E ratio of 22.13, a P/E/G ratio of 1.00 and a beta of 1.53. The firm’s 50 day simple moving average is $75.76 and its two-hundred day simple moving average is $82.90.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business’s revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.72 EPS. As a group, analysts forecast that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Netflix Company Profile

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.