Netflix (NASDAQ:NFLX) Raised to "Buy" at Wall Street Zen

Key Points

• Netflix has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, reflecting increasing analyst confidence in the company's stock.
• JPMorgan Chase raised its price target for Netflix from $1,230.00 to $1,300.00, while BMO Capital Markets has set a higher objective of $1,425.00.
• The company recently reported a quarterly EPS of $7.19, exceeding estimates, with revenue growth of 15.9% year-over-year amounting to $11.08 billion.

Netflix (NASDAQ:NFLX - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Friday.

Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. lifted their price target on Netflix from $1,230.00 to $1,300.00 and gave the company a "neutral" rating in a research report on Friday, July 18th. Phillip Securities cut Netflix from a "hold" rating to a "strong sell" rating in a research report on Monday, July 21st. BMO Capital Markets reaffirmed an "outperform" rating and issued a $1,425.00 price objective (up from $1,200.00) on shares of Netflix in a research note on Tuesday, July 15th. Wedbush reissued an "outperform" rating and set a $1,500.00 price target (up previously from $1,400.00) on shares of Netflix in a research report on Monday, July 14th. Finally, KeyCorp boosted their price objective on Netflix from $1,070.00 to $1,390.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,297.66.

Netflix Trading Down 0.1%

NFLX stock opened at $1,204.65 on Friday. The company has a market capitalization of $511.89 billion, a PE ratio of 51.33, a price-to-earnings-growth ratio of 2.03 and a beta of 1.59. Netflix has a one year low of $660.80 and a one year high of $1,341.15. The company's 50 day moving average price is $1,231.41 and its two-hundred day moving average price is $1,110.30. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.34 and a current ratio of 1.34.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its 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. Netflix had a net margin of 24.58% and a return on equity of 42.50%. The firm had revenue of $11.08 billion for the quarter, compared to analysts' expectations of $11.04 billion. During the same quarter in the previous year, the business posted $4.88 EPS. The company's quarterly revenue was up 15.9% on a year-over-year basis. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. As a group, analysts predict that Netflix will post 24.58 earnings per share for the current fiscal year.

Insider Activity at Netflix

In other Netflix news, Director Reed Hastings sold 26,933 shares of the company's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $1,211.66, for a total transaction of $32,633,638.78. Following the completion of the sale, the director owned 394 shares in the company, valued at approximately $477,394.04. The trade was a 98.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Gregory K. Peters sold 2,026 shares of the business's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,157.44, for a total transaction of $2,344,973.44. Following the completion of the transaction, the chief executive officer directly owned 12,781 shares of the company's stock, valued at $14,793,240.64. This trade represents a 13.68% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 146,307 shares of company stock worth $179,443,809. Company insiders own 1.37% of the company's stock.

Institutional Investors Weigh In On Netflix

A number of institutional investors and hedge funds have recently modified their holdings of the company. Optima Capital LLC grew its holdings in shares of Netflix by 3.5% during the 2nd quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock worth $320,000 after purchasing an additional 8 shares during the period. Unified Investment Management boosted its position in Netflix by 1.7% during the second quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock worth $635,000 after purchasing an additional 8 shares in the last quarter. Plancorp LLC increased its stake in Netflix by 0.6% in the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock valued at $1,711,000 after purchasing an additional 8 shares during the last quarter. Five Oceans Advisors increased its stake in Netflix by 1.1% during the second quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock worth $1,006,000 after acquiring an additional 8 shares during the last quarter. Finally, Old Port Advisors boosted its holdings in Netflix by 1.3% in the second quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock valued at $836,000 after purchasing an additional 8 shares during the last quarter. 80.93% of the stock is 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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