Netflix (NASDAQ:NFLX) Trading 1.6% Higher Following Analyst Upgrade

Shares of Netflix, Inc. (NASDAQ:NFLX) were up 1.6% on Tuesday after China Intl Cap upgraded the stock to a strong-buy rating. The stock traded as high as $68.75 and last traded at $68.67. 55,147,622 shares changed hands during trading, an increase of 20% from the average session volume of 46,007,984 shares. The stock had previously closed at $67.60.

NFLX has been the topic of several other research reports. Moffett Nathanson cut their target price on Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a research note on Wednesday, June 17th. Sanford C. Bernstein set a $95.00 price target on shares of Netflix and gave the stock an “outperform” rating in a research note on Friday, July 17th. Morgan Stanley reiterated an “overweight” rating and issued a $90.00 price objective (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. New Street Research boosted their price objective on shares of Netflix from $96.00 to $102.00 in a research report on Friday, April 17th. Finally, Raymond James Financial restated a “market perform” rating on shares of Netflix in a report on Thursday, May 14th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $103.48.

Insider Buying and Selling

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the firm’s stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the transaction, the chief executive officer directly owned 284,804 shares of the company’s stock, valued at $25,054,207.88. This trade represents a 8.75% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Adam Neumann sold 9,253 shares of Netflix stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. The trade was a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 899,839 shares of company stock valued at $80,141,661 over the last three months. Insiders own 1.24% of the company’s stock.

Key Headlines Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Investors bullish on Netflix say the post-earnings drop has made the stock look more attractive on earnings and cash flow, especially with ad-supported streaming and live content adding future growth drivers. Netflix (NFLX) Stock Still Looks Cheap On Cash Flow And Earnings
• Positive Sentiment: Some market watchers view the post-Q2 sell-off as overdone and argue Netflix has become a value play after the valuation reset. Netflix (NFLX) Stock Has Become a Value Play Post Q2
• Neutral Sentiment: Netflix completed a $1 billion senior notes offering to refinance debt, which should help its balance sheet but is not a major near-term growth catalyst. Netflix Issues $1 Billion Senior Notes to Refinance Debt
• Neutral Sentiment: Several recent analyst and opinion pieces remain split, with some calling Netflix a buy and others saying the valuation reset is appropriate, reinforcing the stock’s uncertain sentiment. Netflix’s Valuation Reset Is Complete: Why Hold Is The Only Rational Move
• Negative Sentiment: Bearish commentary continues to focus on slower growth, weaker transparency after Netflix said it will report key engagement metrics less often, and concern that competition in streaming is intensifying. Netflix (NFLX) Could Be 18% Undervalued After Soft Guidance Raised Fresh Growth Questions

Institutional Trading of Netflix

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its position in shares of Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock worth $36,567,805,000 after buying an additional 351,493,659 shares during the period. State Street Corp boosted its position in Netflix by 927.6% during the fourth quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after acquiring an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC boosted its position in Netflix by 892.0% during the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after acquiring an additional 89,558,684 shares during the last quarter. Capital World Investors grew its holdings in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares during the period. Finally, Price T Rowe Associates Inc. MD raised its position in shares of Netflix by 685.8% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after acquiring an additional 75,107,069 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Price Performance

The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.41 and a current ratio of 1.14. The business has a 50 day moving average price of $79.04 and a 200-day moving average price of $86.31. The company has a market capitalization of $285.35 billion, a price-to-earnings ratio of 21.57, a P/E/G ratio of 0.86 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.01. The firm had revenue of $12.56 billion for 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 company’s revenue was up 13.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.72 earnings per share. Research analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Netflix Company Profile

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.