Canaccord Genuity Group Reaffirms Buy Rating for Netflix (NASDAQ:NFLX)

Key Points

• Canaccord Genuity Group has reiterated its buy rating for Netflix (NASDAQ:NFLX) with a price target of $1,525.00, implying a potential upside of 36.29% from the stock's previous close.
• Netflix's shares recently experienced a 9.9% decline in trading, dropping to $1,118.96 despite a year-over-year revenue increase of 17.2% in their most recent earnings report.
• Insider transactions reveal significant stock sales by both CEO Gregory K. Peters and Director Reed Hastings, raising concerns as insiders sold over $122 million in shares within the last three months.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating restated by stock analysts at Canaccord Genuity Group in a report released on Wednesday,Benzinga reports. They presently have a $1,525.00 price objective on the Internet television network's stock. Canaccord Genuity Group's price objective points to a potential upside of 36.29% from the stock's previous close.

A number of other research analysts have also issued reports on the company. Wells Fargo & Company decreased their target price on Netflix from $1,560.00 to $1,510.00 and set an "overweight" rating for the company in a report on Wednesday. Sanford C. Bernstein reaffirmed a "buy" rating on shares of Netflix in a report on Friday, October 17th. Seaport Res Ptn raised Netflix from a "hold" rating to a "strong-buy" rating in a report on Monday, October 6th. Piper Sandler lifted their price target on Netflix from $1,400.00 to $1,500.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Finally, KeyCorp lifted their price target on Netflix from $1,070.00 to $1,390.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Netflix presently has an average rating of "Moderate Buy" and an average price target of $1,344.34.

Netflix Trading Down 9.9%

Shares of NASDAQ NFLX traded down $122.39 during trading on Wednesday, reaching $1,118.96. The stock had a trading volume of 5,812,982 shares, compared to its average volume of 3,918,127. Netflix has a fifty-two week low of $744.26 and a fifty-two week high of $1,341.15. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.34 and a current ratio of 1.34. The business's 50-day moving average price is $1,214.20 and its 200-day moving average price is $1,182.49. The company has a market cap of $475.48 billion, a P/E ratio of 47.68, a PEG ratio of 2.08 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last released its earnings results on Tuesday, October 21st. The Internet television network reported $5.87 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $6.88 by ($1.01). The company had revenue of $11.51 billion during the quarter, compared to analysts' expectations of $11.52 billion. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The company's revenue for the quarter was up 17.2% on a year-over-year basis. During the same quarter last year, the business posted $5.40 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q4 2025 guidance at 5.450-5.450 EPS. On average, equities research analysts predict that Netflix will post 24.58 EPS for the current fiscal year.

Insider Transactions at Netflix

In related news, CEO Gregory K. Peters sold 2,026 shares of the business's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $1,157.44, for a total value of $2,344,973.44. Following the transaction, the chief executive officer owned 12,781 shares in the company, valued at $14,793,240.64. The trade was a 13.68% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Reed Hastings sold 42,176 shares of the business's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $1,171.92, for a total value of $49,426,897.92. Following the completion of the transaction, the director owned 394 shares in the company, valued at $461,736.48. This trade represents a 99.07% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 104,100 shares of company stock worth $122,710,980 over the last three months. 1.37% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently added to or reduced their stakes in the stock. BG Investment Services Inc. acquired a new position in Netflix during the 2nd quarter worth approximately $338,000. Resurgent Financial Advisors LLC lifted its stake in Netflix by 234.4% in the 1st quarter. Resurgent Financial Advisors LLC now owns 1,010 shares of the Internet television network's stock valued at $942,000 after buying an additional 708 shares in the last quarter. MRA Advisory Group lifted its stake in Netflix by 28.4% in the 2nd quarter. MRA Advisory Group now owns 919 shares of the Internet television network's stock valued at $1,231,000 after buying an additional 203 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. lifted its stake in Netflix by 42.1% in the 1st quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now owns 441,861 shares of the Internet television network's stock valued at $412,059,000 after buying an additional 130,946 shares in the last quarter. Finally, Sava Infond d.o.o. lifted its stake in Netflix by 25.1% in the 2nd quarter. Sava Infond d.o.o. now owns 1,495 shares of the Internet television network's stock valued at $2,002,000 after buying an additional 300 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Company Profile

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.

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