Netflix (NASDAQ:NFLX) Shares Up 1.4% - Here's What Happened

Key Points

• Netflix's stock price increased by 1.4%, trading as high as $1,237.50, with a current market cap of $523.12 billion.
• Multiple brokerages have issued ratings on Netflix, with an average target price of $1,337.63 and a consensus rating of "Moderate Buy".
• The company reported $7.19 EPS in its last quarterly earnings, exceeding expectations, with a year-over-year revenue increase of 15.9%.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price shot up 1.4% during trading on Thursday . The stock traded as high as $1,237.50 and last traded at $1,231.07. 2,815,380 shares were traded during mid-day trading, a decline of 28% from the average session volume of 3,931,523 shares. The stock had previously closed at $1,214.25.

Analyst Ratings Changes

Several brokerages have recently commented on NFLX. Needham & Company LLC restated a "buy" rating and issued a $1,500.00 target price on shares of Netflix in a research report on Wednesday, September 10th. Canaccord Genuity Group restated a "buy" rating on shares of Netflix in a research report on Thursday, July 10th. Oppenheimer upped their price objective on shares of Netflix from $1,200.00 to $1,425.00 and gave the stock an "outperform" rating in a research report on Thursday, June 12th. The Goldman Sachs Group lowered their price objective on shares of Netflix from $1,310.00 to $1,300.00 and set a "neutral" rating for the company in a research report on Tuesday, September 30th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Netflix from $1,230.00 to $1,300.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. Two research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $1,337.63.

Netflix Stock Performance

The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58. The company's 50-day simple moving average is $1,209.61 and its 200-day simple moving average is $1,165.56. The stock has a market capitalization of $523.12 billion, a price-to-earnings ratio of 52.45, a PEG ratio of 2.04 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $11.04 billion. During the same period in the prior year, the company posted $4.88 EPS. The company's 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. On average, analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Activity at Netflix

In other news, Director Reed Hastings sold 42,176 shares of the stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $1,171.92, for a total transaction of $49,426,897.92. Following the completion of the sale, the director directly owned 394 shares in the company, valued at $461,736.48. This represents a 99.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Spencer Adam Neumann sold 2,600 shares of the stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $1,172.51, for a total transaction of $3,048,526.00. Following the sale, the chief financial officer owned 3,691 shares of the company's stock, valued at approximately $4,327,734.41. This trade represents a 41.33% decrease in their ownership of the stock. 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 90 days. 1.37% of the stock is owned by company insiders.

Institutional Investors Weigh In On Netflix

Several large investors have recently modified their holdings of the company. Optima Capital LLC boosted its stake in Netflix by 3.5% during the second quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock worth $320,000 after acquiring an additional 8 shares in the last quarter. Unified Investment Management boosted its stake 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 acquiring an additional 8 shares in the last quarter. Plancorp LLC boosted its stake in Netflix by 0.6% during the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock worth $1,711,000 after acquiring an additional 8 shares in the last quarter. Five Oceans Advisors boosted 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 in the last quarter. Finally, Old Port Advisors boosted its stake in Netflix by 1.3% during the second quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock worth $836,000 after acquiring an additional 8 shares in the last quarter. 80.93% of the stock is currently 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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