Netflix (NASDAQ:NFLX) Earns Outperform Rating from Analysts at Itau BBA Securities

Key Points

• Analysts at Itau BBA Securities have initiated coverage on Netflix, giving it an "outperform" rating and a price target of $1,514.00, indicating a potential upside of over 30% from its previous close.
• Netflix reported $7.19 EPS for the last quarter, exceeding analysts' expectations and achieving a 15.9% year-over-year revenue increase to $11.08 billion.
• Insider trading revealed that the company's CEO sold shares worth approximately $2.34 million, reducing his ownership stake by 13.68% in the company.

Analysts at Itau BBA Securities began coverage on shares of Netflix (NASDAQ:NFLX - Get Free Report) in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage set an "outperform" rating and a $1,514.00 price target on the Internet television network's stock. Itau BBA Securities' price objective points to a potential upside of 30.15% from the company's previous close.

A number of other research analysts also recently commented on NFLX. Wedbush reaffirmed an "outperform" rating and issued a $1,500.00 price target (up previously from $1,400.00) on shares of Netflix in a research note on Monday, July 14th. Citigroup reaffirmed a "neutral" rating and issued a $1,295.00 price target (up previously from $1,280.00) on shares of Netflix in a research note on Friday. Canaccord Genuity Group reaffirmed a "buy" rating on shares of Netflix in a research note on Thursday, July 10th. Phillip Securities downgraded Netflix from a "hold" rating to a "strong sell" rating in a research note on Monday, July 21st. Finally, Seaport Res Ptn downgraded Netflix from a "strong-buy" rating to a "hold" rating in a research note on Sunday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $1,340.59.

Netflix Stock Up 0.9%

NFLX opened at $1,163.31 on Tuesday. Netflix has a fifty-two week low of $677.88 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 company has a market capitalization of $494.33 billion, a P/E ratio of 49.57, a P/E/G ratio of 1.94 and a beta of 1.59. The stock has a fifty day moving average of $1,207.13 and a 200-day moving average of $1,163.23.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings results on Thursday, July 17th. The Internet television network reported $7.19 EPS for the quarter, beating analysts' consensus estimates of $7.07 by $0.12. The business had revenue of $11.08 billion during the quarter, compared to the consensus estimate of $11.04 billion. Netflix had a return on equity of 42.50% and a net margin of 24.58%.Netflix's revenue for the quarter was up 15.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. On average, equities analysts expect that Netflix will post 24.58 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Gregory K. Peters sold 2,026 shares of the company's stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 12,781 shares in the company, valued at $14,793,240.64. This represents a 13.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Cletus R. Willems sold 238 shares of the company's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $1,153.52, for a total value of $274,537.76. The disclosure for this sale can be found here. Insiders sold a total of 104,100 shares of company stock valued at $122,710,980 over the last three months. Insiders own 1.37% of the company's stock.

Institutional Trading of Netflix

Several institutional investors have recently added to or reduced their stakes in NFLX. Vanguard Group Inc. lifted its stake 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 buying an additional 381,824 shares during the period. State Street Corp lifted its stake in Netflix by 2.1% in the second quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock valued at $23,359,801,000 after buying an additional 360,604 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in 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 valued at $10,940,505,000 after buying an additional 304,399 shares during the period. Geode Capital Management LLC lifted its stake in 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 valued at $13,234,278,000 after buying an additional 229,182 shares during the period. Finally, Norges Bank acquired a new position in Netflix in the second quarter valued at approximately $7,929,645,000. 80.93% of the stock is currently owned by institutional investors.

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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