Netflix, Inc. (NFLX) Stock Rating Lowered by Zacks Investment Research
Netflix, Inc. (NASDAQ:NFLX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
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. Stringent competition from other well-established players also poses a major concern.”
Several other analysts also recently commented on the stock. B. Riley restated a “neutral” rating on shares of Netflix in a report on Wednesday, November 1st. Loop Capital reaffirmed a “buy” rating and set a $237.00 price target on shares of Netflix in a research note on Thursday, October 26th. Needham & Company LLC reaffirmed a “neutral” rating on shares of Netflix in a research note on Thursday, October 19th. Vetr raised shares of Netflix from a “hold” rating to a “buy” rating and set a $210.19 price target for the company in a research note on Thursday, October 19th. Finally, Wedbush reaffirmed a “hold” rating and set a $190.00 price target (up from $180.00) on shares of Netflix in a research note on Wednesday, October 18th. One analyst has rated the stock with a sell rating, eighteen have given a hold rating and thirty-two have given a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $207.20.
Shares of Netflix (NFLX) opened at $196.32 on Tuesday. The company has a debt-to-equity ratio of 1.47, a quick ratio of 1.20 and a current ratio of 1.20. The company has a market cap of $84,950.00, a P/E ratio of 196.06, a price-to-earnings-growth ratio of 5.77 and a beta of 1.39. Netflix has a fifty-two week low of $113.95 and a fifty-two week high of $204.38.
Netflix (NASDAQ:NFLX) last announced its earnings results on Monday, October 16th. The Internet television network reported $0.29 EPS for the quarter, missing the consensus estimate of $0.32 by ($0.03). The company had revenue of $2.99 billion for the quarter, compared to analyst estimates of $2.97 billion. Netflix had a return on equity of 14.56% and a net margin of 4.04%. The business’s quarterly revenue was up 30.3% on a year-over-year basis. During the same quarter last year, the business posted $0.12 earnings per share. equities analysts anticipate that Netflix will post 1.26 earnings per share for the current fiscal year.
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In related news, CEO Reed Hastings sold 83,335 shares of the company’s stock in a transaction on Monday, October 23rd. The stock was sold at an average price of $192.79, for a total transaction of $16,066,154.65. Following the completion of the sale, the chief executive officer now owns 83,335 shares in the company, valued at $16,066,154.65. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Richard N. Barton sold 2,000 shares of the company’s stock in a transaction on Tuesday, August 29th. The stock was sold at an average price of $165.72, for a total value of $331,440.00. Following the sale, the director now owns 8,012 shares of the company’s stock, valued at approximately $1,327,748.64. The disclosure for this sale can be found here. Insiders have sold 326,935 shares of company stock worth $63,034,672 over the last ninety days. 4.90% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the stock. Tower Research Capital LLC TRC bought a new stake in Netflix during the second quarter worth $1,045,000. Lincoln National Corp grew its holdings in Netflix by 7.0% during the third quarter. Lincoln National Corp now owns 4,094 shares of the Internet television network’s stock worth $742,000 after buying an additional 268 shares in the last quarter. Calamos Advisors LLC grew its holdings in Netflix by 198.5% during the second quarter. Calamos Advisors LLC now owns 208,945 shares of the Internet television network’s stock worth $31,218,000 after buying an additional 138,945 shares in the last quarter. Alps Advisors Inc. bought a new stake in Netflix during the second quarter worth $262,000. Finally, BB&T Corp grew its holdings in Netflix by 20.0% during the third quarter. BB&T Corp now owns 3,857 shares of the Internet television network’s stock worth $700,000 after buying an additional 642 shares in the last quarter. Institutional investors and hedge funds own 80.32% of the company’s stock.
Netflix Company Profile
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.
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