Netflix, Inc. (NASDAQ:NFLX) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Netflix reported second-quarter 2017 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. A strong subscriber growth overshadowed the earnings miss. In the second quarter, Netflix added more subscribers than the guided number, benefitting from its focus on original programming and international expansion.In the third quarter, Netflix expects to add 0.75 million subscribers in the domestic streaming segment and 3.65 million in the international segment. Moreover, the company expects to report profits from International operations in the quarter. In the past one year, Netflix shares have vastly outperformed the Zacks categorized Broadcast Radio/TV industry. Nonetheless, investments in original/acquired content remain a drag on profitability. We believe Netflix’s ability to effectively manage costs will dictate its future prospects.”
Several other equities analysts have also recently weighed in on NFLX. UBS AG reaffirmed a “buy” rating and set a $175.00 target price on shares of Netflix in a research note on Wednesday, April 19th. Credit Suisse Group reaffirmed a “neutral” rating and set a $190.00 target price (up previously from $154.00) on shares of Netflix in a research note on Tuesday. Robert W. Baird reaffirmed a “neutral” rating and set a $175.00 target price (up previously from $140.00) on shares of Netflix in a research note on Tuesday. Pacific Crest reaffirmed an “overweight” rating and set a $190.00 target price (up previously from $170.00) on shares of Netflix in a research note on Tuesday. Finally, BMO Capital Markets reaffirmed a “market perform” rating and set a $180.00 target price (up previously from $150.00) on shares of Netflix in a research note on Tuesday. Two equities research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and twenty-nine have issued a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $169.38.
Netflix (NFLX) opened at 183.29 on Wednesday. The stock’s 50 day moving average is $158.04 and its 200 day moving average is $148.40. Netflix has a one year low of $85.01 and a one year high of $187.17. The stock has a market capitalization of $79.07 billion, a price-to-earnings ratio of 222.98 and a beta of 0.98.
Netflix (NASDAQ:NFLX) last released its earnings results on Monday, July 17th. The Internet television network reported $0.15 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.16 by $0.01. Netflix had a net margin of 3.55% and a return on equity of 12.82%. The business had revenue of $2.79 billion for the quarter, compared to analysts’ expectations of $2.76 billion. During the same period last year, the firm earned $0.09 EPS. The company’s revenue was up 32.3% compared to the same quarter last year. On average, equities analysts forecast that Netflix will post $1.16 EPS for the current year.
In other Netflix news, CEO Reed Hastings sold 101,815 shares of the stock in a transaction dated Monday, May 22nd. The stock was sold at an average price of $157.13, for a total value of $15,998,190.95. Following the transaction, the chief executive officer now owns 101,815 shares of the company’s stock, valued at $15,998,190.95. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Jonathan Friedland sold 2,496 shares of the stock in a transaction dated Wednesday, July 19th. The shares were sold at an average price of $182.17, for a total value of $454,696.32. Following the completion of the transaction, the insider now directly owns 1,232 shares in the company, valued at approximately $224,433.44. The disclosure for this sale can be found here. Insiders sold 343,728 shares of company stock worth $53,858,193 in the last three months. Insiders own 4.90% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the company. Raymond James Trust N.A. raised its stake in Netflix by 57.0% in the first quarter. Raymond James Trust N.A. now owns 2,800 shares of the Internet television network’s stock worth $414,000 after buying an additional 1,017 shares in the last quarter. CHURCHILL MANAGEMENT Corp raised its stake in Netflix by 1,487.2% in the first quarter. CHURCHILL MANAGEMENT Corp now owns 190,989 shares of the Internet television network’s stock worth $28,230,000 after buying an additional 178,956 shares in the last quarter. Paradigm Financial Advisors LLC acquired a new stake in Netflix during the first quarter worth approximately $238,000. CENTRAL TRUST Co raised its stake in Netflix by 408.4% in the first quarter. CENTRAL TRUST Co now owns 849 shares of the Internet television network’s stock worth $125,000 after buying an additional 682 shares in the last quarter. Finally, Chevy Chase Trust Holdings Inc. raised its stake in Netflix by 3.4% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 373,360 shares of the Internet television network’s stock worth $55,187,000 after buying an additional 12,440 shares in the last quarter. 82.77% of the stock is currently owned by institutional investors.
Netflix Company Profile
Netflix, Inc is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States.
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