Netflix (NASDAQ:NFLX) Shares Up 2.4% - Still a Buy?

Key Points

• Netflix shares rose by 2.4%, closing at $1,191.06, after trading as high as $1,201.37 during the day.
• Analysts are optimistic about Netflix, with a consensus target price of $1,337.63 and numerous "buy" ratings, including a recent increase from Rosenblatt Securities to $1,515.00.
• Insider transactions raised attention, with CEO Theodore A. Sarandos selling shares, as insiders collectively sold over 104,100 shares valued at approximately $122.7 million in the past ninety days.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price traded up 2.4% during trading on Tuesday . The company traded as high as $1,201.37 and last traded at $1,191.06. 3,298,281 shares changed hands during trading, a decline of 16% from the average session volume of 3,944,830 shares. The stock had previously closed at $1,163.31.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Rosenblatt Securities increased their target price on Netflix from $1,514.00 to $1,515.00 and gave the stock a "buy" rating in a report on Friday, July 18th. Itau BBA Securities began coverage on shares of Netflix in a research report on Tuesday. They set an "outperform" rating and a $1,514.00 price objective for the company. Pivotal Research restated a "buy" rating on shares of Netflix in a research report on Thursday, July 10th. Piper Sandler upped their price target on shares of Netflix from $1,400.00 to $1,500.00 and gave the stock an "overweight" rating in a report on Friday, July 18th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $1,500.00 price target on shares of Netflix in a research report on Wednesday, September 10th. One analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating, nine have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $1,337.63.

Netflix Price Performance

The business has a 50-day moving average of $1,207.13 and a two-hundred day moving average of $1,163.23. 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 firm has a market cap of $506.12 billion, a P/E ratio of 50.75, a price-to-earnings-growth ratio of 1.94 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, topping the consensus estimate of $7.07 by $0.12. The company had revenue of $11.08 billion for the quarter, compared to analysts' expectations of $11.04 billion. Netflix had a return on equity of 42.50% and a net margin of 24.58%.The business's quarterly revenue was up 15.9% compared to the same quarter last year. During the same period in the previous year, the business posted $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, sell-side analysts anticipate that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Theodore A. Sarandos sold 2,026 shares of the firm's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $1,160.62, for a total transaction of $2,351,416.12. Following the completion of the transaction, the chief executive officer directly owned 15,168 shares of the company's stock, valued at $17,604,284.16. This trade represents a 11.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Reed Hastings sold 42,176 shares of Netflix stock in a transaction dated 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 transaction, the director directly owned 394 shares in the company, valued at $461,736.48. The trade was a 99.07% 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 ninety days. 1.37% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Netflix

A number of hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new position in shares of Netflix in the 2nd quarter valued at about $7,929,645,000. Laurel Wealth Advisors LLC boosted its stake in Netflix by 128,553.9% during the second quarter. Laurel Wealth Advisors LLC now owns 4,881,129 shares of the Internet television network's stock worth $6,536,466,000 after acquiring an additional 4,877,335 shares in the last quarter. Nuveen LLC bought a new position in Netflix during the first quarter worth $2,385,585,000. Kingstone Capital Partners Texas LLC grew its holdings in Netflix by 343,058.2% in the second quarter. Kingstone Capital Partners Texas LLC now owns 2,463,876 shares of the Internet television network's stock worth $3,299,450,000 after purchasing an additional 2,463,158 shares during the period. Finally, Goldman Sachs Group Inc. increased its stake in Netflix by 57.3% in the first quarter. Goldman Sachs Group Inc. now owns 3,393,064 shares of the Internet television network's stock valued at $3,164,134,000 after purchasing an additional 1,236,251 shares in the last quarter. Institutional investors own 80.93% of the company's stock.

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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