Netflix’s (NFLX) Neutral Rating Reaffirmed at Rosenblatt Securities

Netflix (NASDAQ:NFLX)‘s stock had its “neutral” rating restated by equities researchers at Rosenblatt Securities in a note issued to investors on Friday, Benzinga reports. They presently have a $75.00 target price on the Internet television network’s stock. Rosenblatt Securities’ target price points to a potential upside of 6.34% from the stock’s current price.

Several other equities analysts have also recently commented on the stock. Seaport Research Partners cut shares of Netflix from a “buy” rating to a “neutral” rating in a research note on Monday, July 20th. China Renaissance decreased their price target on shares of Netflix from $100.00 to $80.00 and set a “hold” rating on the stock in a research report on Friday, July 17th. KGI Securities downgraded shares of Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price objective on the stock. in a report on Friday, July 17th. Deutsche Bank Aktiengesellschaft raised shares of Netflix from a “hold” rating to a “buy” rating and cut their price objective for the company from $100.00 to $95.00 in a research report on Tuesday, September 29th. Finally, Barclays set a $70.00 price objective on shares of Netflix and gave the company an “equal weight” rating in a research report on Wednesday, October 7th. Four 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 assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $93.82.

Netflix Stock Performance

Shares of NFLX stock traded down $2.08 during trading hours on Friday, reaching $70.53. 44,027,636 shares of the company’s stock were exchanged, compared to its average volume of 42,251,688. Netflix has a fifty-two week low of $65.08 and a fifty-two week high of $124.86. The stock has a market capitalization of $293.68 billion, a P/E ratio of 22.20, a P/E/G ratio of 1.00 and a beta of 1.62. The business has a fifty day moving average price of $75.25 and a 200-day moving average price of $80.73. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate of $0.79 by $0.01. The company had revenue of $12.56 billion during the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%. Netflix’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period in the prior year, the business earned $0.72 earnings per share. Analysts predict that Netflix will post 3.59 EPS for the current fiscal year.

Insider Activity

In other news, Director Richard N. Barton sold 720 shares of Netflix stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $75.27, for a total transaction of $54,194.40. Following the sale, the director directly owned 2,460 shares in the company, valued at approximately $185,164.20. The trade was a 22.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 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 completion of the sale, the insider directly owned 316,100 shares in the company, valued at approximately $23,027,885. The trade was a 1.78% decrease in their position. 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. Over the last three months, insiders have sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Merkkuri Wealth Advisors LLC bought a new stake in shares of Netflix in the 1st quarter valued at approximately $31,000. Bayban raised its holdings in shares of Netflix by 400.0% in the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock worth $34,000 after buying an additional 280 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix during the 2nd quarter worth approximately $26,000. Bank of New Hampshire lifted its position in shares of Netflix by 900.0% during the 4th quarter. Bank of New Hampshire now owns 380 shares of the Internet television network’s stock worth $36,000 after buying an additional 342 shares during the period. Finally, Compound Global Advisors LLC bought a new position in shares of Netflix during the 2nd quarter worth approximately $29,000. Institutional investors own 80.93% of the company’s stock.

Netflix News Summary

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Former Disney and Fox executive Peter Rice will become Netflix’s chief content officer on October 26, replacing Bela Bajaria. Rice’s experience across scripted and unscripted programming, live sports, prestige television and theatrical distribution could help Netflix develop stronger content and improve engagement over time. Here’s who Netflix just brought in to run content
• Positive Sentiment: Analyst support provides a counterweight to the selling. Jefferies upgraded Netflix to “strong buy” and has cited pricing power and advertising growth as potential revenue drivers, while Wedbush maintained an “outperform” rating with a $90 price target. Options activity is also described as bullish ahead of earnings. Netflix stock gets bullish analyst call
• Neutral Sentiment: Netflix reports third-quarter results after the market closes on October 20. Investors will watch revenue growth, advertising commitments, margins, subscriber trends and management’s outlook; options traders expect a potentially large post-earnings move. Netflix earnings options outlook
• Negative Sentiment: The leadership change is being interpreted as evidence that Netflix’s content strategy needs a reset. Bajaria’s departure comes after nearly a decade with the company and immediately follows Netflix’s announcement that it will eliminate about 1,000 jobs, or 6% of its workforce. The timing, just before earnings, is increasing investor uncertainty. Netflix shares under pressure as chief content officer departs
• Negative Sentiment: Investors remain concerned about slowing viewer engagement, rising churn and intensifying streaming competition. Analysts note that pricing and advertising may support revenue, but slower viewership growth and Netflix’s premium valuation leave little room for disappointing guidance. Netflix prepares for third-quarter 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.