Netflix (NASDAQ:NFLX) Earns “Neutral” Rating from Rosenblatt Securities

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

Several other brokerages have also issued reports on NFLX. Stephens started coverage on Netflix in a report on Friday, July 17th. They issued an “overweight” rating on the stock. Jefferies Financial Group set a $85.00 price objective on Netflix and gave the company a “buy” rating in a report on Thursday. Morgan Stanley lowered their target price on Netflix from $83.00 to $80.00 and set an “overweight” rating on the stock in a research report on Thursday, October 8th. KeyCorp lowered their target price on Netflix from $92.00 to $85.00 and set an “overweight” rating on the stock in a research report on Tuesday. Finally, Barclays set a $70.00 target price on Netflix and gave the stock an “equal weight” rating in a report on Wednesday, October 7th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have issued a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Netflix has a consensus rating of “Moderate Buy” and an average price target of $93.82.

Netflix Stock Down 2.9%

NFLX traded down $2.08 during midday trading on Friday, hitting $70.53. The company had a trading volume of 44,092,721 shares, compared to its average volume of 42,269,742. The stock’s 50 day moving average price is $75.17 and its 200 day moving average price is $80.66. Netflix has a 52 week low of $65.08 and a 52 week high of $124.86. The company has a market capitalization of $293.68 billion, a price-to-earnings ratio of 22.20, a PEG ratio of 1.00 and a beta of 1.62. 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 released its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The company had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business’s revenue was up 13.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.72 EPS. On average, research analysts anticipate that Netflix will post 3.59 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Netflix news, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. This trade represents a 11.14% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $73.54, for a total value of $2,008,524.48. Following the sale, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 179,045 shares of company stock valued at $13,132,194 over the last 90 days. 1.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in NFLX. Merkkuri Wealth Advisors LLC bought a new position in shares of Netflix during the 1st quarter valued at approximately $31,000. Bayban grew its holdings in Netflix by 400.0% during the first quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after purchasing an additional 280 shares during the period. Clal Insurance Enterprises Holdings Ltd purchased a new stake in Netflix in the second quarter worth $26,000. Bank of New Hampshire increased its position in Netflix by 900.0% in the fourth 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 last quarter. Finally, Compound Global Advisors LLC bought a new stake in shares of Netflix in the second quarter valued at $29,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Netflix News Summary

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

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.