Netflix (NASDAQ:NFLX) Stock Price Up 2.8% – What’s Next?

Shares of Netflix, Inc. (NASDAQ:NFLX) rose 2.8% on Tuesday . The stock traded as high as $82.46 and last traded at $82.23. Approximately 29,167,857 shares traded hands during trading, a decline of 34% from the average session volume of 44,221,938 shares. The stock had previously closed at $80.01.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Higher analyst valuation: Wolfe Research raised its Netflix price target to $95 from $84, arguing that concerns about viewer engagement are overstated and that engagement trends are improving. The target implies meaningful upside from recent trading levels. Netflix is primed to move higher as viewer engagement improves, Wolfe Research says
• Positive Sentiment: Content and platform catalysts: Netflix’s planned preview release tied to Grand Theft Auto VI, along with its broader entertainment slate, could increase viewing, app engagement and subscriber retention. Dear Netflix Stock Fans, Mark Your Calendars for August 27
• Positive Sentiment: Advertising growth potential: NFL programming and possible access to rival streaming content could give viewers more reasons to remain within Netflix’s app and help expand its advertising business. Netflix Stock: NFL Growth and Rival Streaming Access Could Grow Its Ad Business
• Neutral Sentiment: Rally durability remains unproven: Netflix has recovered more than 21% from its recent low, but investors are watching three issues—engagement, upcoming content performance and monetization—to determine whether the recovery can continue or stalls. Netflix Is Rallying: These 3 Catalysts Will Decide If That Continues
• Negative Sentiment: Pricing and valuation risks: Industry data suggests streaming price increases are slowing, while Netflix’s premium valuation leaves less room for disappointment. Investors may therefore be taking profits and waiting for clearer evidence that content spending and advertising can sustain growth.

Analyst Ratings Changes

A number of brokerages recently issued reports on NFLX. Rosenblatt Securities set a $75.00 price target on Netflix and gave the company a “neutral” rating in a report on Friday, July 17th. Moffett Nathanson cut their price target on shares of Netflix from $120.00 to $115.00 and set a “buy” rating on the stock in a report on Wednesday, June 17th. Wells Fargo & Company set a $80.00 price objective on shares of Netflix and gave the company an “equal weight” rating in a research report on Friday, July 17th. China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a report on Tuesday, July 21st. Finally, Phillip Securities raised Netflix from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday, July 19th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $103.19.

Netflix Price Performance

The firm has a market cap of $332.43 billion, a P/E ratio of 25.14, a price-to-earnings-growth ratio of 1.03 and a beta of 1.52. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The firm’s 50 day moving average is $74.51 and its 200 day moving average is $84.37.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The firm had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period last year, the business earned $0.72 earnings per share. The business’s revenue was up 13.4% on a year-over-year basis. As a group, analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.

Insider Buying and Selling

In other Netflix news, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. The trade was a 18.42% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total transaction of $2,789,944.80. Following the completion of the transaction, the director owned 79,690 shares in the company, valued at approximately $6,177,568.80. This represents a 31.11% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 600,295 shares of company stock worth $49,056,671 over the last quarter. 1.24% of the stock is owned by insiders.

Hedge Funds Weigh In On Netflix

Several hedge funds and other institutional investors have recently added to or reduced their stakes in NFLX. Brighton Jones LLC lifted its stake in Netflix by 5.0% during the 4th quarter. Brighton Jones LLC now owns 5,390 shares of the Internet television network’s stock valued at $4,804,000 after acquiring an additional 257 shares during the period. Revolve Wealth Partners LLC grew its position in Netflix by 16.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 1,023 shares of the Internet television network’s stock worth $912,000 after purchasing an additional 144 shares during the period. Sivia Capital Partners LLC raised its stake in Netflix by 21.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 1,406 shares of the Internet television network’s stock valued at $1,883,000 after buying an additional 246 shares during the last quarter. Strategic Investment Advisors MI lifted its holdings in shares of Netflix by 18.9% during the 2nd quarter. Strategic Investment Advisors MI now owns 774 shares of the Internet television network’s stock valued at $1,036,000 after buying an additional 123 shares during the period. Finally, Schnieders Capital Management LLC. boosted its stake in shares of Netflix by 12.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,115 shares of the Internet television network’s stock worth $2,832,000 after buying an additional 228 shares during the last quarter. 80.93% of the stock is owned by institutional investors.

Netflix Company Profile

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.