Netflix (NASDAQ:NFLX) Receives "Buy" Rating from Guggenheim

Key Points

• Guggenheim has reaffirmed its "buy" rating for Netflix (NASDAQ:NFLX) and set a target price of $1,450.00, indicating a potential upside of 27.72% from the previous close.
• Shares of Netflix recently traded down 8.5% to $1,135.33, with a market capitalization of $482.43 billion and a price-to-earnings ratio of 48.39.
• Netflix missed consensus earnings estimates in its latest quarter, reporting $5.87 EPS against an expected $6.88, but achieved a year-over-year revenue growth of 17.2%.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at Guggenheim in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $1,450.00 target price on the Internet television network's stock. Guggenheim's price target suggests a potential upside of 27.72% from the stock's previous close.

Several other equities analysts have also recently commented on the stock. Wells Fargo & Company reduced their price target on shares of Netflix from $1,560.00 to $1,510.00 and set an "overweight" rating on the stock in a research report on Wednesday. BMO Capital Markets reissued an "outperform" rating and issued a $1,425.00 target price (up previously from $1,200.00) on shares of Netflix in a report on Tuesday, July 15th. TD Cowen cut their target price on shares of Netflix from $1,450.00 to $1,425.00 and set a "buy" rating on the stock in a report on Tuesday, October 7th. Canaccord Genuity Group reissued a "buy" rating on shares of Netflix in a report on Thursday, July 10th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Netflix in a report on Wednesday, October 8th. Two research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Netflix has an average rating of "Moderate Buy" and a consensus price target of $1,344.34.

Netflix Stock Down 8.5%

Shares of NFLX stock traded down $106.02 during trading hours on Wednesday, hitting $1,135.33. 2,821,901 shares of the company were exchanged, compared to its average volume of 3,899,614. 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 has a one year low of $744.26 and a one year high of $1,341.15. The business's 50-day simple moving average is $1,214.20 and its two-hundred day simple moving average is $1,182.49. The stock has a market capitalization of $482.43 billion, a price-to-earnings ratio of 48.39, a P/E/G ratio of 2.08 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings results 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 return on equity of 42.50% and a net margin of 24.58%.The company had revenue of $11.51 billion for the quarter, compared to the consensus estimate of $11.52 billion. During the same period in the previous year, the business posted $5.40 EPS. The business's revenue for the quarter 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. Sell-side analysts predict that Netflix will post 24.58 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Gregory K. Peters sold 2,026 shares of the firm's stock in a transaction that occurred 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 transaction, the chief executive officer owned 12,781 shares in the company, valued at $14,793,240.64. This trade represents a 13.68% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Cletus R. Willems sold 238 shares of the firm'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 transaction of $274,537.76. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock valued at $122,710,980 in the last ninety days. Insiders own 1.37% of the company's stock.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently made changes to their positions in NFLX. Optima Capital LLC lifted its stake in shares of Netflix by 3.5% in the 2nd quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock valued at $320,000 after purchasing an additional 8 shares during the last quarter. Unified Investment Management lifted its stake in shares of Netflix by 1.7% in the 2nd quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock valued at $635,000 after purchasing an additional 8 shares during the last quarter. Plancorp LLC lifted its stake in shares of Netflix by 0.6% in the 2nd 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 lifted its stake in shares of Netflix by 1.1% in the 2nd quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock valued at $1,006,000 after purchasing an additional 8 shares during the last quarter. Finally, Old Port Advisors lifted its stake in shares of Netflix by 1.3% in the 2nd 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 currently owned by institutional investors.

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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