Netflix (NASDAQ:NFLX) Raised to Strong-Buy at China Intl Cap

Netflix (NASDAQ:NFLX) was upgraded by China Intl Cap to a “strong-buy” rating in a report released on Tuesday,Zacks.com reports.

Other equities research analysts have also issued reports about the company. China Renaissance increased their target price on Netflix from $90.00 to $100.00 and gave the stock a “hold” rating in a research report on Friday, April 17th. Barclays reduced their price target on shares of Netflix from $85.00 to $80.00 and set an “equal weight” rating for the company in a report on Friday, July 17th. CLSA assumed coverage on shares of Netflix in a research report on Monday. They set an “outperform” rating for the company. Phillip Securities upgraded shares of Netflix from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday. Finally, Erste Group Bank lowered shares of Netflix from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $103.48.

Netflix Stock Down 0.2%

NASDAQ:NFLX opened at $68.53 on Tuesday. The firm has a market capitalization of $285.35 billion, a PE ratio of 21.57, a price-to-earnings-growth ratio of 0.86 and a beta of 1.52. The stock has a 50 day moving average of $79.04 and a 200-day moving average of $86.31. Netflix has a 52 week low of $65.08 and a 52 week high of $126.71. The company has a current ratio of 1.14, a quick ratio of 1.41 and a debt-to-equity ratio of 0.39.

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

Insider Transactions at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of Netflix stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $6,563,353.65. The trade was a 11.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $77.52, for a total value of $2,789,944.80. Following the completion of the transaction, the director directly owned 79,690 shares in the company, valued at $6,177,568.80. This represents a 31.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 899,839 shares of company stock valued at $80,141,661 in the last 90 days. 1.24% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Netflix

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

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Negative Sentiment: Netflix’s Q2 results beat EPS expectations, but revenue came in slightly below consensus and management signaled growth could slow to around 12% in Q3, raising concerns about momentum. Netflix Has Plummeted Over the Past Year and Just Dropped Again on Earnings. At 22 Times Profits, Is It a Buy?
• Negative Sentiment: Investors are also reacting to a “valuation reset” and weaker transparency after Netflix said it will report key viewership metrics less often, making it harder to measure progress. Is Netflix Asking Investors To Trust A Story It Will No Longer Tell?
• Negative Sentiment: The selloff has been amplified by bearish calls and articles arguing that sentiment remains weak, with some analysts saying the stock still has room to fall despite the recent drop. ‘Scratching the Surface,’ Says Top Investor About Netflix Stock
• Negative Sentiment: Netflix also completed a $1 billion senior notes offering to refinance debt, which is financially prudent but may reinforce the market’s focus on capital structure rather than growth. Netflix Issues $1 Billion Senior Notes to Refinance Debt

About Netflix

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.