Netflix, Inc. (NFLX) Upgraded to “Buy” by Zacks Investment Research
Zacks Investment Research upgraded shares of Netflix, Inc. (NASDAQ:NFLX) from a hold rating to a buy rating in a research note published on Monday morning. The firm currently has $219.00 target price on the Internet television network’s stock.
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.”
NFLX has been the subject of a number of other reports. Stifel Nicolaus raised their target price on shares of Netflix from $200.00 to $230.00 and gave the company a buy rating in a report on Thursday, October 12th. J P Morgan Chase & Co reissued an overweight rating and issued a $225.00 target price (up from $210.00) on shares of Netflix in a report on Friday, October 13th. Vetr upgraded Netflix from a hold rating to a buy rating and set a $210.19 price target for the company in a research report on Thursday, October 19th. MKM Partners raised their price target on Netflix from $195.00 to $230.00 and gave the stock a buy rating in a research report on Thursday, July 27th. Finally, Piper Jaffray Companies restated an overweight rating and issued a $215.00 price target (up from $198.00) on shares of Netflix in a research report on Tuesday, August 8th. One research analyst has rated the stock with a sell rating, seventeen have given a hold rating and thirty-three have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of Buy and a consensus target price of $207.20.
Netflix (NFLX) traded up $2.85 during trading on Monday, reaching $196.95. 1,418,646 shares of the company traded hands, compared to its average volume of 6,676,404. The stock has a market cap of $83,840.00, a price-to-earnings ratio of 195.15, a price-to-earnings-growth ratio of 5.74 and a beta of 1.39. Netflix has a one year low of $113.95 and a one year high of $204.38. The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 1.47.
Netflix (NASDAQ:NFLX) last released its earnings results on Monday, October 16th. The Internet television network reported $0.29 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.32 by ($0.03). Netflix had a return on equity of 14.56% and a net margin of 4.04%. The firm had revenue of $2.99 billion during the quarter, compared to analysts’ expectations of $2.97 billion. During the same period in the prior year, the company posted $0.12 earnings per share. The company’s revenue was up 30.3% compared to the same quarter last year. analysts predict that Netflix will post 1.26 EPS for the current fiscal year.
In related news, Director Richard N. Barton sold 700 shares of the business’s stock in a transaction that occurred on Thursday, November 16th. The stock was sold at an average price of $194.29, for a total transaction of $136,003.00. Following the completion of the sale, the director now directly owns 7,393 shares in the company, valued at $1,436,385.97. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO David B. Wells sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, November 13th. The stock was sold at an average price of $191.12, for a total value of $191,120.00. Following the sale, the chief financial officer now owns 1,000 shares of the company’s stock, valued at $191,120. The disclosure for this sale can be found here. Insiders have sold 250,692 shares of company stock valued at $48,074,934 in the last ninety days. Corporate insiders own 4.90% of the company’s stock.
A number of large investors have recently modified their holdings of NFLX. FMR LLC grew its holdings in Netflix by 12.4% in the 2nd quarter. FMR LLC now owns 23,633,237 shares of the Internet television network’s stock valued at $3,531,042,000 after buying an additional 2,605,731 shares in the last quarter. Janus Henderson Group PLC lifted its stake in Netflix by 3,478.1% during the 2nd quarter. Janus Henderson Group PLC now owns 2,041,458 shares of the Internet television network’s stock worth $305,014,000 after acquiring an additional 1,984,404 shares in the last quarter. Jennison Associates LLC lifted its stake in Netflix by 14.0% during the 2nd quarter. Jennison Associates LLC now owns 14,784,089 shares of the Internet television network’s stock worth $2,208,891,000 after acquiring an additional 1,814,056 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. lifted its stake in Netflix by 22,622.2% during the 2nd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 814,592 shares of the Internet television network’s stock worth $121,708,000 after acquiring an additional 811,007 shares in the last quarter. Finally, Vanguard Group Inc. lifted its stake in Netflix by 2.9% during the 2nd quarter. Vanguard Group Inc. now owns 27,950,272 shares of the Internet television network’s stock worth $4,176,049,000 after acquiring an additional 789,190 shares in the last quarter. Institutional investors 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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