Zacks Investment Research upgraded shares of Netflix Inc. (NASDAQ:NFLX) from a hold rating to a buy rating in a research note issued to investors on Monday. Zacks Investment Research currently has $107.00 price target on the Internet television network’s stock.
According to Zacks, “We continue to believe that Netflix’s growth will eventually come from International markets. Also, investment in original/acquired content, though a drag on profitability at present, will be accretive to long-term growth. At the recently held Goldman Sachs’ conference, CFO David Wells said that Netflix’s library will boast 50:50 ratio of original and acquired content over the next few years. However, the ongoing ‘un-grandfathering’ or increase in subscription rates for Netflix’s older domestic customers is likely to have a telling effect on its near-term performance. At its last earnings call, Netflix gave a muted user growth outlook for the current year due to the price hike rollout. Plus, stiff competition adds to its troubles. Estimates have been stable ahead of the company’s third quarter earnings release. The company has an average positive earnings surprise of 175% in the trailing four quarters.”
Other equities analysts have also issued reports about the stock. Stifel Nicolaus reaffirmed a buy rating and issued a $143.00 target price on shares of Netflix in a research note on Wednesday, June 29th. Pacific Crest reaffirmed a buy rating and issued a $130.00 target price on shares of Netflix in a research note on Wednesday, June 22nd. Cantor Fitzgerald reaffirmed a buy rating and issued a $140.00 target price on shares of Netflix in a research note on Thursday, June 23rd. Nomura reaffirmed a buy rating and issued a $115.00 target price (down from $125.00) on shares of Netflix in a research note on Monday, June 20th. Finally, Vetr lowered shares of Netflix from a strong-buy rating to a buy rating and set a $106.59 target price for the company. in a research note on Thursday, June 16th. Seven investment analysts have rated the stock with a sell rating, twelve have assigned a hold rating and twenty-eight have given a buy rating to the company’s stock. The stock currently has an average rating of Hold and a consensus price target of $110.70.
Netflix (NASDAQ:NFLX) opened at 97.48 on Monday. The company has a market cap of $41.79 billion, a P/E ratio of 304.63 and a beta of 1.71. Netflix has a 12-month low of $79.95 and a 12-month high of $133.27. The firm’s 50-day moving average price is $96.85 and its 200-day moving average price is $96.16.
Netflix (NASDAQ:NFLX) last announced its earnings results on Monday, July 18th. The Internet television network reported $0.09 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.02 by $0.07. The firm earned $2.11 billion during the quarter, compared to analyst estimates of $2.11 billion. Netflix had a net margin of 1.85% and a return on equity of 5.59%. The company’s revenue for the quarter was up 19.5% compared to the same quarter last year. During the same period in the prior year, the business earned $0.06 EPS. Analysts expect that Netflix will post $0.29 EPS for the current year.
In other news, CEO Reed Hastings sold 84,665 shares of the business’s stock in a transaction on Tuesday, September 20th. The shares were sold at an average price of $98.47, for a total transaction of $8,336,962.55. Following the completion of the transaction, the chief executive officer now directly owns 68,065 shares in the company, valued at approximately $6,702,360.55. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard N. Barton sold 700 shares of the business’s stock in a transaction on Wednesday, September 21st. The shares were sold at an average price of $96.90, for a total transaction of $67,830.00. Following the transaction, the director now owns 15,562 shares of the company’s stock, valued at $1,507,957.80. The disclosure for this sale can be found here. Insiders own 4.90% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cornerstone Advisors Inc. raised its position in shares of Netflix by 25.6% in the second quarter. Cornerstone Advisors Inc. now owns 1,118 shares of the Internet television network’s stock valued at $102,000 after buying an additional 228 shares during the period. Signature Estate & Investment Advisors LLC bought a new position in shares of Netflix during the second quarter valued at about $124,000. Quadrant Capital Group LLC raised its position in shares of Netflix by 15.1% in the second quarter. Quadrant Capital Group LLC now owns 1,475 shares of the Internet television network’s stock valued at $126,000 after buying an additional 194 shares during the period. Coconut Grove Bank raised its position in shares of Netflix by 1.7% in the second quarter. Coconut Grove Bank now owns 1,526 shares of the Internet television network’s stock valued at $140,000 after buying an additional 26 shares during the period. Finally, Harel Insurance Investments & Financial Services Ltd. raised its position in shares of Netflix by 15.3% in the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 1,690 shares of the Internet television network’s stock valued at $155,000 after buying an additional 224 shares during the period. Hedge funds and other institutional investors own 78.43% of the company’s stock.
Netflix, Inc (Netflix) is a provider of Internet television network. The Company’s members can watch original series, documentaries and feature films in Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly membership fees for services consisting of streaming content.
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