Netflix (NASDAQ:NFLX) Stock Price Up 1.6% - Here's Why

Key Points

• Netflix's stock price increased by 1.6% to $1,166.33, although trading volume was significantly down by 78% compared to its average.
• Analysts have raised their price targets for Netflix, with estimates reaching as high as $1,500.00, reflecting an overall positive outlook as the stock receives a rating of "Moderate Buy."
• Recent earnings reports showed Netflix beating consensus estimates, reporting $7.19 EPS and a revenue of $11.08 billion for the quarter, marking a 15.9% year-over-year revenue increase.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s stock price traded up 1.6% on Wednesday . The stock traded as high as $1,166.70 and last traded at $1,166.33. 941,753 shares changed hands during trading, a decline of 78% from the average session volume of 4,223,266 shares. The stock had previously closed at $1,147.87.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on the stock. Rosenblatt Securities boosted their price objective on shares of Netflix from $1,514.00 to $1,515.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Barclays reaffirmed a "sell" rating and issued a $1,100.00 target price (up from $1,000.00) on shares of Netflix in a report on Wednesday, July 9th. Benchmark reaffirmed a "hold" rating on shares of Netflix in a report on Monday, April 21st. Bank of America lifted their target price on shares of Netflix from $1,175.00 to $1,490.00 and gave the company a "buy" rating in a report on Friday, May 30th. Finally, Robert W. Baird lifted their target price on shares of Netflix from $1,300.00 to $1,500.00 and gave the company an "outperform" rating in a report on Monday, July 21st. Three equities research analysts have rated the stock with a sell rating, eleven have given a hold rating, twenty-two have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,297.66.

Netflix Stock Performance

The stock's 50 day moving average price is $1,232.25 and its 200 day moving average price is $1,094.45. 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 has a market cap of $514.86 billion, a price-to-earnings ratio of 51.63, a P/E/G ratio of 2.04 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its quarterly earnings data 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 company had revenue of $11.08 billion during the quarter, compared to the consensus estimate of $11.04 billion. During the same quarter in the prior year, the company posted $4.88 EPS. The company's quarterly revenue was up 15.9% compared to the same quarter last year. On average, analysts expect that Netflix, Inc. will post 24.58 EPS for the current fiscal year.

Insider Activity

In other 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 completion of the sale, the chief executive officer owned 12,781 shares of the company's stock, valued at approximately $14,793,240.64. This trade represents a 13.68% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider David A. Hyman sold 424 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $1,158.67, for a total transaction of $491,276.08. Following the sale, the insider directly owned 31,610 shares of the company's stock, valued at $36,625,558.70. The trade was a 1.32% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 150,226 shares of company stock worth $183,849,784. 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. Halbert Hargrove Global Advisors LLC increased its stake in Netflix by 100.0% during the first quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock valued at $25,000 after purchasing an additional 13 shares during the last quarter. Brown Shipley& Co Ltd bought a new stake in Netflix during the fourth quarter valued at $27,000. Legacy Investment Solutions LLC bought a new stake in Netflix during the second quarter valued at $31,000. Transce3nd LLC acquired a new position in shares of Netflix during the fourth quarter valued at $32,000. Finally, Stephens Consulting LLC grew its position in shares of Netflix by 150.0% during the second quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock worth $33,000 after acquiring an additional 15 shares during the last quarter. Institutional investors own 80.93% of the company's stock.

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.