Netflix (NASDAQ:NFLX) Earns "Buy" Rating from Sanford C. Bernstein

Key Points

• Sanford C. Bernstein reaffirmed its “buy” rating on Netflix, while analysts overall maintain a “Moderate Buy” consensus with an average price target of $95.51.
• Netflix reported quarterly earnings of $0.80 per share, slightly ahead of estimates, while revenue reached $12.56 billion and increased 13.4% year over year.
• The stock opened at $71.52, near the lower end of its $65.08–$124.86 52-week range; institutional investors own 80.93% of outstanding shares, while insiders have recently sold shares.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reissued by research analysts at Sanford C. Bernstein in a report issued on Monday.

Other research analysts have also recently issued research reports about the stock. UBS Group lowered their target price on shares of Netflix from $130.00 to $115.00 and set a "buy" rating on the stock in a research note on Friday, July 17th. The Goldman Sachs Group lowered Netflix from an "underweight" rating to a "sell" rating in a research note on Monday, July 20th. Morgan Stanley reissued an "overweight" rating and set a $90.00 price target (down from $115.00) on shares of Netflix in a report on Tuesday, July 14th. Citigroup restated a "market perform" rating on shares of Netflix in a research report on Monday, August 17th. Finally, Phillip Securities raised Netflix from a "moderate buy" rating to a "strong-buy" rating and set a $110.00 price objective for the company in a research note on Sunday, July 19th. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $95.51.

Netflix Stock Performance

NFLX stock opened at $71.52 on Monday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. Netflix has a 1 year low of $65.08 and a 1 year high of $124.86. The company has a market cap of $297.80 billion, a P/E ratio of 22.51, a price-to-earnings-growth ratio of 1.00 and a beta of 1.53. The stock's fifty day moving average price is $75.72 and its 200-day moving average price is $83.10.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.01. The business had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company's quarterly revenue was up 13.4% on a year-over-year basis. During the same period last year, the firm earned $0.72 earnings per share. On average, equities analysts forecast that Netflix will post 3.59 earnings per share for the current year.

Insider Activity

In related news, insider David A. Hyman sold 5,723 shares of the stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the completion of the transaction, the insider directly owned 316,100 shares of the company's stock, valued at approximately $23,027,885. This represents a 1.78% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the firm's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares of the company's stock, valued at $5,592,316.73. This represents a 11.14% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 179,045 shares of company stock valued at $13,132,194. 1.24% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

Several hedge funds have recently modified their holdings of NFLX. BlackRock Inc. purchased a new stake in Netflix during the second quarter valued at $24,902,221,000. State Street Corp grew its stake in shares of Netflix by 4.9% in the 2nd quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock worth $12,861,252,000 after buying an additional 8,474,820 shares in the last quarter. Capital World Investors increased its holdings in shares of Netflix by 859.1% in the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Bank of America Corp DE increased its holdings in shares of Netflix by 4.3% in the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock worth $5,571,201,000 after buying an additional 2,376,349 shares during the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Netflix by 835.9% in the 4th quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock worth $4,075,062,000 after buying an additional 38,818,947 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.

Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.

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