Netflix (NASDAQ:NFLX) Trading 1.3% Higher - What's Next?

Key Points

• Netflix's share price rose by 1.3% to $1,199.36, with a decline in trading volume of 25% compared to the average session.
• Analysts have varying views, with UBS and Needham maintaining "buy" ratings and target prices of $1,495.00 and $1,500.00, while Goldman Sachs adjusted its target down to $1,300.00 with a "neutral" rating.
• Insider trading has seen significant sales, including Director Reed Hastings selling 42,176 shares for nearly $50 million, indicating potential shifting dynamics within the company's leadership.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report)'s share price traded up 1.3% during trading on Friday . The stock traded as high as $1,203.12 and last traded at $1,199.36. 2,914,638 shares were traded during mid-day trading, a decline of 25% from the average session volume of 3,899,667 shares. The stock had previously closed at $1,183.59.

Analyst Ratings Changes

Several equities research analysts have commented on the company. UBS Group reissued a "buy" rating and issued a $1,495.00 target price on shares of Netflix in a report on Thursday. Needham & Company LLC reissued a "buy" rating and issued a $1,500.00 target price on shares of Netflix in a report on Wednesday, September 10th. The Goldman Sachs Group dropped their target price on Netflix from $1,310.00 to $1,300.00 and set a "neutral" rating on the stock in a report on Tuesday, September 30th. Pivotal Research reaffirmed a "buy" rating on shares of Netflix in a report on Thursday, July 10th. Finally, KeyCorp upped their price target on Netflix from $1,070.00 to $1,390.00 and gave the company an "overweight" rating in a report on Thursday, July 10th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Netflix currently has a consensus rating of "Moderate Buy" and a consensus target price of $1,339.81.

Netflix Stock Performance

The business has a fifty day moving average price of $1,213.72 and a 200-day moving average price of $1,174.05. The company has a quick ratio of 1.34, a current ratio of 1.34 and a debt-to-equity ratio of 0.58. The stock has a market capitalization of $509.64 billion, a P/E ratio of 51.10, a P/E/G ratio of 2.02 and a beta of 1.59.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share for the quarter, beating analysts' consensus estimates of $7.07 by $0.12. Netflix had a return on equity of 42.50% and a net margin of 24.58%.The company had revenue of $11.08 billion for the quarter, compared to the consensus estimate of $11.04 billion. During the same quarter in the prior year, the company earned $4.88 earnings per share. Netflix's revenue was up 15.9% on a year-over-year basis. On average, sell-side analysts expect that Netflix, Inc. will post 24.58 EPS for the current year.

Insider Buying and Selling

In other Netflix news, Director Reed Hastings sold 42,176 shares of the 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 owned 394 shares of the company's stock, valued at approximately $461,736.48. This represents a 99.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Gregory K. Peters sold 2,026 shares of the stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 12,781 shares in the company, valued at approximately $14,793,240.64. This represents a 13.68% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 104,100 shares of company stock valued at $122,710,980 in the last 90 days. Insiders own 1.37% of the company's stock.

Institutional Trading of Netflix

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Optima Capital LLC increased its position in Netflix by 3.5% in the second quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock worth $320,000 after buying an additional 8 shares in the last quarter. Unified Investment Management increased its position in Netflix by 1.7% in the second quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock worth $635,000 after buying an additional 8 shares in the last quarter. Plancorp LLC increased its position in Netflix by 0.6% in the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock worth $1,711,000 after buying an additional 8 shares in the last quarter. Five Oceans Advisors increased its position in Netflix by 1.1% in the second quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock worth $1,006,000 after buying an additional 8 shares in the last quarter. Finally, Old Port Advisors increased its position in Netflix by 1.3% in the second quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock worth $836,000 after buying an additional 8 shares in the last quarter. Hedge funds and other 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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