Netflix (NASDAQ:NFLX) Stock Rating Upgraded by China Intl Cap

Key Points

• China Intl Cap upgraded Netflix to a strong-buy, adding to a broadly bullish analyst backdrop that currently shows a consensus Moderate Buy rating and an average target price of about $104.21.
• Netflix shares were up 1.6% in the report, but the stock was still trading well below its recent highs, near the low end of its 12-month range after a recent earnings-driven selloff.
• The company’s latest quarter showed earnings beat expectations with 13.4% revenue growth year over year, though revenue came in just shy of estimates and investor debate remains focused on whether the post-earnings drop has created a buying opportunity.

Netflix (NASDAQ:NFLX - Get Free Report) was upgraded by research analysts at China Intl Cap to a "strong-buy" rating in a report issued on Tuesday,Zacks.com reports.

NFLX has been the topic of a number of other reports. Rosenblatt Securities set a $75.00 price target on shares of Netflix and gave the company a "neutral" rating in a report on Friday. Citigroup downgraded shares of Netflix from a "buy" rating to a "positive" rating in a research note on Monday. CLSA initiated coverage on shares of Netflix in a report on Monday. They issued an "outperform" rating on the stock. KeyCorp reaffirmed an "overweight" rating and set a $92.00 price target (down from $115.00) on shares of Netflix in a research report on Monday, July 13th. Finally, Deutsche Bank Aktiengesellschaft set a $110.00 price objective on Netflix in a report on Monday. Four analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $104.21.

Netflix Trading Up 1.6%

NFLX opened at $68.67 on Tuesday. The company has a current ratio of 1.14, a quick ratio of 1.41 and a debt-to-equity ratio of 0.39. The firm has a market cap of $285.94 billion, a price-to-earnings ratio of 21.61, a PEG ratio of 0.85 and a beta of 1.52. Netflix has a 12 month low of $65.08 and a 12 month high of $126.71. The stock has a fifty day moving average price of $79.42 and a 200-day moving average price of $86.49.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts' consensus estimates of $0.79 by $0.01. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The company had revenue of $12.56 billion for the quarter, compared to the consensus estimate of $12.58 billion. During the same quarter last year, the company earned $0.72 earnings per share. The firm's revenue for the quarter was up 13.4% compared to the same quarter last year. As a group, equities research analysts anticipate that Netflix will post 3.6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Theodore A. Sarandos sold 27,312 shares of Netflix stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $87.97, for a total transaction of $2,402,636.64. Following the completion of the sale, the chief executive officer directly owned 284,804 shares in the company, valued at approximately $25,054,207.88. The trade was a 8.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Adam Neumann sold 9,253 shares of the business's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $88.95, for a total transaction of $823,054.35. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 899,839 shares of company stock valued at $80,141,661. Corporate insiders own 1.24% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of NFLX. Vanguard Group Inc. boosted its position in Netflix by 912.5% in the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network's stock valued at $36,567,805,000 after buying an additional 351,493,659 shares during the last quarter. State Street Corp increased its holdings in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network's stock worth $16,574,986,000 after buying an additional 159,578,053 shares during the period. Geode Capital Management LLC raised its position in Netflix by 892.0% during the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network's stock worth $9,305,336,000 after buying an additional 89,558,684 shares during the last quarter. Capital World Investors raised its position in Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network's stock worth $8,376,656,000 after buying an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in Netflix by 685.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network's stock valued at $8,068,882,000 after acquiring an additional 75,107,069 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Netflix delivered an earnings beat and continues to post double-digit revenue growth, while bulls argue the selloff has made the stock look inexpensive on earnings and cash flow. Netflix “Is Not a Broken Company” and Trades At Just 19x Earnings. Jim Cramer Says Start Buying
• Positive Sentiment: Several analysts and commentators say the post-earnings drop may have created a buying opportunity, citing Netflix’s ad business, live content ambitions, international growth, and strong free-cash-flow potential. Netflix (NFLX) Stock Still Looks Cheap On Cash Flow And Earnings
• Positive Sentiment: Phillip Securities upgraded Netflix from “moderate buy” to “strong-buy,” with one analyst saying engagement shows no signs of slowing and setting a higher price target than the current trading level. Netflix, Inc. (NFLX) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Wall Street coverage remains active and largely mixed-to-bullish, with some reports pointing to meaningful upside in consensus price targets even after the recent slide. Netflix Fell 45% Over 12 Months But This Ratings House Sees A Doubling Share Price
• Negative Sentiment: Investors are worried about softer revenue guidance, slowing growth momentum, and Netflix making viewership metrics harder to track, which raises questions about transparency and future monetization. Netflix (NFLX) Could Be 18% Undervalued After Soft Guidance Raised Fresh Growth Questions
• Negative Sentiment: Multiple articles described the stock’s recent action as a sharp post-earnings crash or “miserable stretch,” reflecting concern that the latest quarter did not convince investors that growth will reaccelerate soon. Netflix just made its slowdown harder to measure

About Netflix

Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.

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