Jefferies Financial Group Reiterates Buy Rating for Netflix (NASDAQ:NFLX)

Key Points

• Jefferies Financial Group has reiterated its "buy" rating for Netflix (NASDAQ:NFLX) and set a price target of $1,500, indicating a potential upside of 34.26% from its current price.
• Despite the recommendation from Jefferies, Netflix's stock is down 10%, trading at $1,117.20 after a recent quarterly earnings report that missed expectations.
• The company reported a 17.2% year-over-year revenue increase of $11.51 billion but fell short of analyst EPS estimates, prompting varied ratings from other analysts.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reiterated by research analysts at Jefferies Financial Group in a research report issued to clients and investors on Wednesday,MarketScreener Latest Ratings reports. They presently have a $1,500.00 price target on the Internet television network's stock. Jefferies Financial Group's price target points to a potential upside of 34.26% from the company's current price.

NFLX has been the topic of several other reports. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Netflix in a research report on Wednesday, October 8th. Rosenblatt Securities raised their target price on Netflix from $1,515.00 to $1,530.00 and gave the stock a "buy" rating in a research report on Wednesday. The Goldman Sachs Group lowered their price objective on Netflix from $1,310.00 to $1,300.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 30th. Needham & Company LLC reaffirmed a "buy" rating and set a $1,500.00 price objective on shares of Netflix in a research report on Wednesday. Finally, Itau BBA Securities began coverage on Netflix in a research report on Tuesday, October 7th. They set an "outperform" rating and a $1,514.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $1,341.22.

Netflix Stock Down 10.0%

Shares of NASDAQ:NFLX traded down $124.15 on Wednesday, hitting $1,117.20. 13,880,011 shares of the company traded hands, compared to its average volume of 3,959,297. Netflix has a 52 week low of $744.26 and a 52 week high of $1,341.15. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.58. The stock has a 50 day simple moving average of $1,214.20 and a 200-day simple moving average of $1,182.49. The company has a market cap of $474.73 billion, a PE ratio of 47.60, a PEG ratio of 2.08 and a beta of 1.59.

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

Insider Activity at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 2,026 shares of the company's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $1,160.62, for a total value of $2,351,416.12. Following the completion of the sale, the chief executive officer directly owned 15,168 shares in the company, valued at approximately $17,604,284.16. This represents a 11.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Reed Hastings sold 42,176 shares of the company's stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $1,171.92, for a total value of $49,426,897.92. Following the sale, the director owned 394 shares of the company's stock, valued at $461,736.48. This trade represents a 99.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock worth $122,710,980 over the last quarter. 1.37% of the stock is owned by insiders.

Institutional Trading of Netflix

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in Netflix by 1.0% in the second quarter. Vanguard Group Inc. now owns 38,379,084 shares of the Internet television network's stock valued at $51,394,583,000 after purchasing an additional 381,824 shares during the period. State Street Corp boosted its stake in shares of Netflix by 2.1% in the second quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock worth $23,359,801,000 after acquiring an additional 360,604 shares during the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of Netflix by 2.7% in the first quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock worth $10,940,505,000 after acquiring an additional 304,399 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Netflix by 2.4% in the second quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network's stock worth $13,234,278,000 after acquiring an additional 229,182 shares during the last quarter. Finally, Norges Bank acquired a new stake in shares of Netflix in the second quarter worth approximately $7,929,645,000. 80.93% of the stock is owned by institutional investors and hedge funds.

About Netflix

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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