Zacks Investment Research cut shares of Netflix, Inc. (NASDAQ:NFLX) from a buy rating to a hold rating in a research note released on Wednesday.
According to Zacks, “Netflix’s growing subscriber base is the primary factor that helps it generate significant revenues. The company’s investments in regional programming help it to draw more international subscribers. The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 109.3 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. In the past one year, Netflix shares have vastly outperformed the industry. However, higher investments on original/acquired content will continue to hurt profitability, at least in the near term. International expansion and content additions also resulted in cost escalations in the form of technology investments and marketing expenses. Stringent competition from other well-established players also poses a major concern.”
NFLX has been the subject of several other reports. Piper Jaffray Companies reaffirmed a buy rating and set a $215.00 target price on shares of Netflix in a research report on Monday, September 18th. Loop Capital raised their target price on Netflix from $228.00 to $242.00 and gave the company a buy rating in a research report on Tuesday, October 17th. Royal Bank Of Canada reaffirmed an outperform rating and set a $210.00 target price on shares of Netflix in a research report on Friday, October 6th. Vetr raised Netflix from a sell rating to a hold rating and set a $165.75 target price for the company in a research report on Thursday, August 10th. Finally, J P Morgan Chase & Co reaffirmed a buy rating on shares of Netflix in a research report on Wednesday, August 9th. One analyst has rated the stock with a sell rating, eighteen have issued a hold rating and thirty-two have issued a buy rating to the company’s stock. The stock has an average rating of Buy and an average target price of $207.20.
Shares of Netflix (NASDAQ:NFLX) opened at $193.20 on Wednesday. The company has a market capitalization of $84,600.00, a price-to-earnings ratio of 197.69, a P/E/G ratio of 5.75 and a beta of 1.39. Netflix has a 12-month low of $113.51 and a 12-month high of $204.38. The company has a debt-to-equity ratio of 1.47, a current ratio of 1.20 and a quick ratio of 1.20.
Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Monday, October 16th. The Internet television network reported $0.29 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.03). The company had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $2.97 billion. Netflix had a net margin of 4.04% and a return on equity of 14.56%. The company’s quarterly revenue was up 30.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.12 earnings per share. equities analysts anticipate that Netflix will post 1.28 earnings per share for the current fiscal year.
In related news, Director Richard N. Barton sold 2,000 shares of Netflix stock in a transaction that occurred on Tuesday, August 29th. The stock was sold at an average price of $165.72, for a total transaction of $331,440.00. Following the sale, the director now directly owns 8,012 shares in the company, valued at $1,327,748.64. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Richard N. Barton sold 700 shares of Netflix stock in a transaction that occurred on Thursday, November 2nd. The shares were sold at an average price of $197.38, for a total value of $138,166.00. Following the sale, the director now owns 7,362 shares in the company, valued at $1,453,111.56. The disclosure for this sale can be found here. Insiders have sold 344,072 shares of company stock worth $63,582,550 over the last 90 days. 4.90% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Balentine LLC boosted its position in shares of Netflix by 1,020.4% during the third quarter. Balentine LLC now owns 549 shares of the Internet television network’s stock valued at $100,000 after purchasing an additional 500 shares in the last quarter. Almanack Investment Partners LLC. bought a new stake in shares of Netflix during the second quarter valued at approximately $101,000. TD Capital Management LLC bought a new stake in shares of Netflix during the second quarter valued at approximately $105,000. Aviance Capital Management LLC bought a new stake in shares of Netflix during the second quarter valued at approximately $137,000. Finally, Captrust Financial Advisors bought a new stake in shares of Netflix during the second quarter valued at approximately $139,000. Institutional investors own 80.43% of the company’s stock.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Netflix Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Netflix Inc. and related companies with MarketBeat.com's FREE daily email newsletter.