Brokerages Set Netflix, Inc. (NASDAQ:NFLX) Target Price at $96.65

Shares of Netflix, Inc. (NASDAQ:NFLX) have been given an average recommendation of “Moderate Buy” by the fifty-five research firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, sixteen have assigned a hold rating, thirty-four have issued a buy rating and four have issued a strong buy rating on the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $96.6524.

A number of brokerages have recently issued reports on NFLX. China Renaissance reduced their price objective on shares of Netflix from $100.00 to $80.00 and set a “hold” rating for the company in a research note on Friday, July 17th. Jefferies Financial Group dropped their target price on shares of Netflix from $110.00 to $90.00 and set a “buy” rating for the company in a report on Friday, July 17th. Stephens initiated coverage on Netflix in a research note on Friday, July 17th. They issued an “overweight” rating for the company. Citigroup reissued a “market perform” rating on shares of Netflix in a report on Monday, August 17th. Finally, TD Cowen lowered their price objective on Netflix from $112.00 to $100.00 and set a “buy” rating on the stock in a research report on Friday, July 17th.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Bill Ackman’s Pershing Square reportedly sold its Alphabet position and purchased approximately 13.1 million Netflix shares in the second quarter, signaling confidence in Netflix’s long-term growth and cash-generation potential. Bill Ackman Dumps Alphabet for Netflix
• Positive Sentiment: Analyst and market commentary points to a possible recovery driven by upcoming content releases, a reported Wolfe Research price target of $95, and a median target of $115 from analysts tracked by Quiver Quantitative. Netflix Recovery and Partnerships
• Positive Sentiment: Netflix’s latest U.K. price increases, including a rise in the ad-supported plan from £5.99 to £7.99 per month, could lift average revenue per member. Historical price increases have reportedly been followed by continued annual revenue growth. Netflix U.K. Price Increase
• Neutral Sentiment: Shares have declined roughly 38% to 40% over the past year, making the valuation more appealing to some investors, but debate remains whether the lower price reflects a buying opportunity or slowing growth. Netflix Stock Price Outlook
• Neutral Sentiment: Netflix’s lack of a dividend makes it less attractive to income investors, although bullish analysts argue that reinvesting cash into content and growth offers better long-term potential. Why Own Netflix Without a Dividend
• Negative Sentiment: The main near-term catalyst weighing on NFLX is the reported Q2 revenue miss and weak Q3 outlook, which raised concerns about slowing subscriber and advertising momentum. Netflix Stock Drops
• Negative Sentiment: Quiver Quantitative reports that Netflix insiders made 24 open-market sales and no purchases during the past six months, a potential confidence signal investors may monitor. Netflix Insider Trading Activity

Insider Buying and Selling

In related news, CEO Theodore A. Sarandos sold 27,312 shares of the company’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the sale, the chief executive officer owned 178,954 shares of the company’s stock, valued at $13,126,275.90. This represents a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 company’s stock in a transaction dated Tuesday, August 4th. The shares were 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 $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 213,595 shares of company stock worth $15,812,072 in the last 90 days. 1.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Netflix

Several hedge funds have recently added to or reduced their stakes in NFLX. California State Teachers Retirement System grew its stake in shares of Netflix by 7,028.2% during the second quarter. California State Teachers Retirement System now owns 458,934,710 shares of the Internet television network’s stock worth $32,767,938,000 after acquiring an additional 452,496,424 shares during the last quarter. BlackRock Inc. purchased a new position in shares of Netflix in the 2nd quarter valued at approximately $24,902,221,000. State Street Corp raised its position in shares of Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock valued at $16,574,986,000 after purchasing an additional 159,578,053 shares during the last quarter. Geode Capital Management LLC boosted its stake in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Finally, Capital World Investors boosted its stake in Netflix by 859.1% in 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 purchasing an additional 80,025,890 shares in the last quarter. 80.93% of the stock is currently owned by institutional investors.

Netflix Price Performance

Netflix stock opened at $78.25 on Tuesday. The firm has a market cap of $325.83 billion, a price-to-earnings ratio of 24.63, a PEG ratio of 1.10 and a beta of 1.53. The stock has a fifty day simple moving average of $75.61 and a two-hundred day simple moving average of $84.46. Netflix has a 12 month low of $65.08 and a 12 month high of $126.71. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last posted its 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 business 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 for the quarter was up 13.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.72 EPS. Equities analysts predict that Netflix will post 3.59 EPS for the current fiscal year.

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.