Netflix (NASDAQ:NFLX) Stock Rating Raised to “Strong-Buy” at Jefferies Financial Group

Netflix (NASDAQ:NFLX) was upgraded by research analysts at Jefferies Financial Group to a “strong-buy” rating in a research note issued to investors on Thursday, Zacks reports.

Several other equities analysts have also recently issued reports on NFLX. Itau BBA Securities decreased their price target on Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a report on Wednesday, August 5th. Robert W. Baird set a $90.00 price objective on Netflix and gave the stock an “outperform” rating in a report on Wednesday, July 22nd. Seaport Research Partners downgraded shares of Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Barclays set a $70.00 target price on shares of Netflix and gave the company an “equal weight” rating in a research report on Wednesday, October 7th. Finally, KGI Securities cut shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target for the company. in a research report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have assigned a Buy rating, fifteen have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Netflix presently has a consensus rating of “Moderate Buy” and a consensus price target of $94.41.

Netflix Stock Up 2.9%

NASDAQ NFLX opened at $72.61 on Thursday. The stock has a market capitalization of $302.34 billion, a P/E ratio of 22.85, a price-to-earnings-growth ratio of 1.00 and a beta of 1.62. Netflix has a 52 week low of $65.08 and a 52 week high of $124.86. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a fifty day moving average of $75.25 and a 200-day moving average of $80.73.

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. Netflix had a return on equity of 40.02% and a net margin of 28.22%. The business had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same quarter in the prior year, the firm posted $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 forecast that Netflix will post 3.59 EPS for the current year.

Insider Buying and Selling

In related news, CFO Spencer Neumann sold 9,248 shares of Netflix stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares of the company’s stock, valued at $5,592,316.73. This trade represents a 11.14% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Theodore A. Sarandos sold 27,312 shares of the business’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 transaction of $2,003,335.20. Following the transaction, the chief executive officer owned 178,954 shares of the company’s stock, 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. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 over the last quarter. Insiders own 1.24% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several hedge funds have recently bought and sold shares of NFLX. Paragon Capital Management Inc. lifted its holdings in Netflix by 5.9% during the third quarter. Paragon Capital Management Inc. now owns 14,016 shares of the Internet television network’s stock worth $975,000 after acquiring an additional 786 shares in the last quarter. Daytona Street Capital LLC grew its stake in Netflix by 41.7% in the third quarter. Daytona Street Capital LLC now owns 72,179 shares of the Internet television network’s stock valued at $4,868,000 after acquiring an additional 21,234 shares during the period. Neumann Capital Management LLC acquired a new position in Netflix in the third quarter valued at about $746,000. NFSG Corp increased its holdings in shares of Netflix by 25.7% in the third quarter. NFSG Corp now owns 97,605 shares of the Internet television network’s stock worth $6,791,000 after acquiring an additional 19,948 shares in the last quarter. Finally, SLT Holdings LLC bought a new stake in shares of Netflix in the third quarter worth about $394,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

More Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies initiated coverage with a Buy rating and an $85 price target, citing potential revenue support from subscription-price increases and advertising. Netflix stock gets bullish analyst call ahead of next week’s earnings
• Positive Sentiment: Netflix named former Disney and Fox executive Peter Rice as chief content officer, replacing Bela Bajaria. Rice’s experience could help Netflix improve its content strategy and viewer engagement as competition intensifies. Netflix names former Disney executive Rice as new content chief
• Neutral Sentiment: Netflix will release third-quarter results on October 20. Wall Street estimates for revenue, earnings and operating metrics may drive volatility as investors look for evidence that pricing, advertising and content investments are offsetting weaker engagement. Ahead of Netflix Q3 earnings
• Negative Sentiment: Netflix is eliminating roughly 1,000 positions, or 6% of its workforce, its largest reduction since 2022. Management described the move as a resource-allocation and efficiency effort, but investors may view it as evidence of slowing growth and pressure to control costs. Netflix is laying off roughly 6% of its workforce
• Negative Sentiment: Reports citing app data indicate U.S. churn has risen and viewing engagement has weakened. Those trends raise questions about Netflix’s ability to retain subscribers amid competition from other streaming services, YouTube and creator-led video. Netflix warning signs ahead of Q3 earnings

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.