Netflix (NASDAQ:NFLX) Trading 2.3% Higher After Analyst Upgrade

Key Points

• Netflix's stock price increased by 2.3% after Loop Capital upgraded its rating from hold to buy, raising the price target to $1,350.00.
• Institutional investors, including Vanguard and State Street, have increased their stakes in Netflix, with 80.93% of the stock now owned by hedge funds and other investors.
• Netflix reported strong earnings, exceeding analysts' estimates with $7.19 earnings per share in its most recent quarter, indicating a 15.9% revenue growth compared to the previous year.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price rose 2.3% on Wednesday after Loop Capital upgraded the stock from a hold rating to a buy rating. Loop Capital now has a $1,350.00 price target on the stock, up from their previous price target of $1,150.00. Netflix traded as high as $1,233.93 and last traded at $1,228.50. Approximately 3,438,430 shares changed hands during trading, a decline of 14% from the average daily volume of 4,002,787 shares. The stock had previously closed at $1,200.51.

Other equities research analysts have also issued research reports about the company. Piper Sandler raised their price objective on Netflix from $1,400.00 to $1,500.00 and gave the company an "overweight" rating in a research note on Friday, July 18th. Barclays reissued a "sell" rating and set a $1,100.00 price target (up previously from $1,000.00) on shares of Netflix in a research report on Wednesday, July 9th. Bank of America upped their price target 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. Jefferies Financial Group reiterated a "buy" rating on shares of Netflix in a research note on Tuesday, August 12th. Finally, Phillip Securities lowered shares of Netflix from a "hold" rating to a "strong sell" rating in a report on Monday, July 21st. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, Netflix currently has an average rating of "Moderate Buy" and a consensus target price of $1,328.87.

Insider Buying and Selling at Netflix

In other Netflix news, CEO Theodore A. Sarandos sold 2,026 shares of Netflix stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $1,160.62, for a total value of $2,351,416.12. Following the completion of the transaction, the chief executive officer directly owned 15,168 shares in the company, valued at $17,604,284.16. The trade was a 11.78% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Gregory K. Peters sold 2,026 shares of the company'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 value of $2,344,973.44. Following 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 ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 89,348 shares of company stock valued at $109,498,489. Corporate insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Netflix

Several hedge funds and other institutional investors have recently modified their holdings of NFLX. Legacy Investment Solutions LLC bought a new position in Netflix in the 2nd quarter worth about $31,000. Stephens Consulting LLC boosted 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 buying an additional 15 shares during the period. Halbert Hargrove Global Advisors LLC grew its holdings in Netflix by 100.0% in the 1st quarter. Halbert Hargrove Global Advisors LLC now owns 26 shares of the Internet television network's stock worth $25,000 after buying an additional 13 shares in the last quarter. Rossby Financial LCC acquired a new stake in Netflix in the 2nd quarter valued at approximately $35,000. Finally, Maseco LLP acquired a new stake in Netflix in the 2nd quarter valued at approximately $39,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Netflix Stock Up 1.6%

The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.34 and a current ratio of 1.34. The firm has a 50 day simple moving average of $1,212.49 and a two-hundred day simple moving average of $1,140.66. The stock has a market cap of $521.38 billion, a P/E ratio of 52.28, a P/E/G ratio of 2.07 and a beta of 1.60.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly 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. The company had revenue of $11.08 billion for the quarter, compared to analyst estimates of $11.04 billion. Netflix had a return on equity of 42.50% and a net margin of 24.58%.The company's quarterly revenue was up 15.9% compared to the same quarter last year. During the same period last year, the company earned $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. Equities research analysts predict that Netflix, Inc. will post 24.58 earnings per share for the current year.

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.