Netflix’s (NFLX) “Neutral” Rating Reiterated at Rosenblatt Securities

Rosenblatt Securities reiterated their neutral rating on shares of Netflix (NASDAQ:NFLX) in a research note issued to investors on Friday morning,Benzinga reports. Rosenblatt Securities currently has a $75.00 price objective on the Internet television network’s stock.

A number of other research firms have also weighed in on NFLX. President Capital lowered their price target on shares of Netflix from $134.00 to $83.00 and set a “buy” rating for the company in a report on Monday, July 20th. Evercore reaffirmed an “outperform” rating and set a $110.00 price target (up from $100.00) on shares of Netflix in a research note on Monday, September 14th. Huber Research lowered shares of Netflix from a “buy” rating to an “underweight” rating in a report on Tuesday, October 13th. Moffett Nathanson cut their price objective on shares of Netflix from $115.00 to $100.00 and set a “buy” rating on the stock in a report on Friday, July 17th. Finally, DZ Bank reissued a “buy” rating on shares of Netflix in a research report on Monday, July 20th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $93.82.

Netflix Price Performance

NASDAQ NFLX opened at $70.53 on Friday. 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 has a fifty-two week low of $65.08 and a fifty-two week high of $124.86. The business has a 50 day moving average price of $75.17 and a two-hundred day moving average price of $80.57. The stock has a market cap of $293.68 billion, a PE ratio of 22.20, a P/E/G ratio of 1.00 and a beta of 1.62.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data 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 company had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter last year, the company earned $0.72 earnings per share. Netflix’s revenue for the quarter was up 13.4% on a year-over-year basis. As a group, sell-side analysts predict that Netflix will post 3.59 EPS for the current fiscal year.

Insider Activity

In other Netflix news, CFO Spencer Neumann sold 9,248 shares of the business’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the completion of the sale, the chief financial officer owned 73,787 shares in the company, valued at $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Richard Barton sold 720 shares of the stock in a transaction on Thursday, September 10th. The stock was 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 $185,164.20. This trade represents a 22.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 179,045 shares of company stock valued at $13,132,194 over the last quarter. 1.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Netflix

A number of institutional investors have recently modified their holdings of the business. American Capital Advisory LLC raised its stake in shares of Netflix by 0.8% in the first quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock worth $1,345,000 after purchasing an additional 109 shares during the last quarter. CWS Financial Advisors LLC lifted its holdings in shares of Netflix by 3.2% during the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock valued at $347,000 after purchasing an additional 112 shares in the last quarter. Warner Group LLC boosted its position in shares of Netflix by 2.2% during the first quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock valued at $503,000 after buying an additional 114 shares during the last quarter. Financial Avengers Inc. boosted its position in shares of Netflix by 9.8% during the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after buying an additional 115 shares during the last quarter. Finally, PAX Financial Group LLC boosted its position in shares of Netflix by 2.5% during the first quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock valued at $466,000 after buying an additional 116 shares during the last quarter. Institutional investors own 80.93% of the company’s stock.

Key Netflix News

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 provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.