Zacks Investment Research cut shares of Netflix (NASDAQ:NFLX) from a buy rating to a hold rating in a research report sent to investors on Wednesday morning.
According to Zacks, “Netflix's shares have vastly outperformed the industry in the past year. The company’s efforts to attract viewers through investing in more regional programming is leading to robust addition of international subscribers. The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 117.58 million subscribers globally. We believe continuing subscriber addition and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward. Estimates have been stable lately ahead of the company’s Q1 earnings release. However, increasing market spends and higher investments on original/acquired content will continue to hurt profitability, at least in the near term. Rising competition is also a major concern. The company has mixed record of earnings surprises in recent quarters.”
NFLX has been the subject of a number of other research reports. Vetr cut Netflix from a hold rating to a sell rating and set a $266.74 target price for the company. in a report on Thursday, February 22nd. Credit Suisse Group reiterated a neutral rating and issued a $266.00 target price (up previously from $224.00) on shares of Netflix in a report on Tuesday, January 23rd. Loop Capital lifted their target price on Netflix from $237.00 to $241.00 and gave the stock a buy rating in a report on Tuesday, January 2nd. Buckingham Research reiterated a neutral rating and issued a $251.00 target price (up previously from $235.00) on shares of Netflix in a report on Thursday, January 18th. Finally, Barclays set a $285.00 target price on Netflix and gave the stock a buy rating in a report on Tuesday, January 23rd. Three research analysts have rated the stock with a sell rating, sixteen have issued a hold rating, thirty-four have given a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of Buy and an average price target of $257.79.
Netflix (NASDAQ:NFLX) last announced its earnings results on Monday, January 22nd. The Internet television network reported $0.41 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.41. The firm had revenue of $3.29 billion during the quarter, compared to analysts’ expectations of $3.28 billion. Netflix had a return on equity of 17.20% and a net margin of 4.78%. The company’s quarterly revenue was up 32.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.15 EPS. research analysts forecast that Netflix will post 2.73 earnings per share for the current year.
In related news, Director Richard N. Barton sold 700 shares of the business’s stock in a transaction on Thursday, April 5th. The stock was sold at an average price of $283.39, for a total transaction of $198,373.00. Following the transaction, the director now directly owns 7,393 shares in the company, valued at approximately $2,095,102.27. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Jonathan Friedland sold 3,180 shares of the business’s stock in a transaction on Monday, January 8th. The stock was sold at an average price of $211.64, for a total value of $673,015.20. Following the transaction, the insider now owns 1,032 shares in the company, valued at $218,412.48. The disclosure for this sale can be found here. Over the last three months, insiders sold 452,009 shares of company stock valued at $121,912,410. Corporate insiders own 4.90% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the stock. Cambridge Investment Research Advisors Inc. grew its stake in Netflix by 4.1% during the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 46,013 shares of the Internet television network’s stock worth $8,833,000 after buying an additional 1,801 shares during the last quarter. Certified Advisory Corp purchased a new position in Netflix during the 4th quarter worth $378,000. Wagner Wealth Management LLC purchased a new position in Netflix during the 4th quarter worth $125,000. D.B. Root & Company LLC purchased a new position in Netflix during the 4th quarter worth $994,000. Finally, Xact Kapitalforvaltning AB grew its stake in Netflix by 9.4% during the 4th quarter. Xact Kapitalforvaltning AB now owns 76,669 shares of the Internet television network’s stock worth $14,717,000 after buying an additional 6,602 shares during the last quarter. Hedge funds and other institutional investors own 81.62% of the company’s stock.
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Netflix, Inc, an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. It operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. The company offers TV shows and movies, including original series, documentaries, and feature films.
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