Jefferies Financial Group Begins Coverage on Netflix (NASDAQ:NFLX)

Equities researchers at Jefferies Financial Group assumed coverage on shares of Netflix (NASDAQ:NFLX) in a note issued to investors on Thursday, Marketbeat.com reports. The firm set a “buy” rating and a $85.00 price target on the Internet television network’s stock. Jefferies Financial Group’s price target suggests a potential upside of 20.52% from the company’s current price.

Several other equities research analysts have also recently weighed in on the company. Stephens started coverage on Netflix in a research note on Friday, July 17th. They set an “overweight” rating for the company. Guggenheim reaffirmed a “buy” rating and issued a $80.00 target price (up from $75.00) on shares of Netflix in a report on Thursday, October 1st. Rothschild & Co Redburn decreased their price target on Netflix from $120.00 to $93.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Robert W. Baird set a $90.00 price target on Netflix and gave the company an “outperform” rating in a research note on Wednesday, July 22nd. Finally, Rosenblatt Securities set a $75.00 price target on Netflix and gave the stock a “neutral” rating in a report on Friday, July 17th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and a consensus price target of $93.82.

Netflix Price Performance

Shares of Netflix stock traded down $2.08 on Thursday, reaching $70.53. 44,092,721 shares of the stock were exchanged, compared to its average volume of 38,724,876. The firm’s 50 day moving average is $75.17 and its 200-day moving average is $80.66. Netflix has a one year low of $65.08 and a one year 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 firm has a market cap of $293.68 billion, a PE ratio of 22.20, a P/E/G ratio of 1.02 and a beta of 1.62.

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

Insider Buying and Selling at Netflix

In other Netflix news, insider David A. Hyman sold 5,723 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider owned 316,100 shares in the company, valued at $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 179,045 shares of company stock worth $13,132,194 over the last 90 days. 1.24% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Robertson Stephens Wealth Management LLC raised its stake in shares of Netflix by 4.0% during the third quarter. Robertson Stephens Wealth Management LLC now owns 55,739 shares of the Internet television network’s stock valued at $3,878,000 after acquiring an additional 2,143 shares during the last quarter. Frank Rimerman Advisors LLC lifted its holdings in shares of Netflix by 0.6% during the third quarter. Frank Rimerman Advisors LLC now owns 579,839 shares of the Internet television network’s stock worth $40,345,000 after purchasing an additional 3,538 shares during the period. Western Pacific Wealth Management LP grew its stake in shares of Netflix by 73.1% in the third quarter. Western Pacific Wealth Management LP now owns 6,060 shares of the Internet television network’s stock worth $422,000 after purchasing an additional 2,560 shares during the last quarter. AlphaStar Capital Management LLC grew its stake in shares of Netflix by 20.0% in the third quarter. AlphaStar Capital Management LLC now owns 40,915 shares of the Internet television network’s stock worth $2,847,000 after purchasing an additional 6,816 shares during the last quarter. Finally, Cravens & Co Advisors LLC grew its stake in shares of Netflix by 13.4% in the third quarter. Cravens & Co Advisors LLC now owns 9,205 shares of the Internet television network’s stock worth $640,000 after purchasing an additional 1,089 shares during the last quarter. 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 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

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.