Netflix (NASDAQ:NFLX) Trading Up 3.3% - Still a Buy?

Key Points

• Netflix's stock rose by 3.3% during trading, reaching a high of $1,247.76, while the recent average trading volume was similar to previous days.
• Wall Street analysts provided mixed ratings for Netflix, with a majority maintaining a buy rating while some analysts downgraded it, leading to an average target price of $1,339.81.
• In recent insider trading activity, Director Reed Hastings significantly reduced his holdings by selling 42,176 shares, representing a 99.07% decrease in ownership.

Netflix, Inc. (NASDAQ:NFLX - Get Free Report) was up 3.3% during trading on Monday . The company traded as high as $1,247.76 and last traded at $1,238.56. Approximately 3,897,167 shares traded hands during mid-day trading, a decline of 0% from the average daily volume of 3,899,776 shares. The stock had previously closed at $1,199.36.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on NFLX shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Netflix in a research report on Wednesday, October 8th. Phillip Securities lowered Netflix from a "hold" rating to a "strong sell" rating in a research report on Monday, July 21st. Wall Street Zen lowered Netflix from a "buy" rating to a "hold" rating in a research report on Saturday, October 4th. Loop Capital upgraded Netflix from a "hold" rating to a "buy" rating and upped their price objective for the stock from $1,150.00 to $1,350.00 in a research report on Wednesday, September 17th. Finally, Piper Sandler upped their price objective on Netflix from $1,400.00 to $1,500.00 and gave the stock an "overweight" rating in a research report on Friday, July 18th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Netflix presently has an average rating of "Moderate Buy" and an average target price of $1,339.81.

Netflix Stock Up 3.3%

The stock has a market cap of $526.30 billion, a PE ratio of 52.77, a price-to-earnings-growth ratio of 2.02 and a beta of 1.59. 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 business has a 50-day moving average price of $1,213.47 and a 200-day moving average price of $1,179.41.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its earnings results on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) 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 firm had revenue of $11.08 billion for the quarter, compared to analyst estimates of $11.04 billion. During the same quarter last year, the firm posted $4.88 EPS. The business's revenue was up 15.9% on a year-over-year basis. As a group, analysts forecast that Netflix, Inc. will post 24.58 earnings per share for the current year.

Insider Activity

In other news, Director Reed Hastings sold 42,176 shares of the stock in a transaction that occurred on Wednesday, October 1st. The stock was sold at an average price of $1,171.92, for a total transaction of $49,426,897.92. Following the transaction, the director owned 394 shares in the company, valued at $461,736.48. This trade represents a 99.07% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider David A. Hyman sold 424 shares of the stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $1,158.67, for a total value of $491,276.08. Following the completion of the transaction, the insider directly owned 31,610 shares of the company's stock, valued at approximately $36,625,558.70. This represents a 1.32% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 104,100 shares of company stock worth $122,710,980. Insiders own 1.37% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NFLX. Retirement Wealth Solutions LLC acquired a new position in Netflix in the 3rd quarter valued at $28,000. Legacy Investment Solutions LLC acquired a new position in Netflix in the 2nd quarter valued at $31,000. Steph & Co. raised its stake in Netflix by 188.9% in the 3rd quarter. Steph & Co. now owns 26 shares of the Internet television network's stock valued at $31,000 after purchasing an additional 17 shares during the last quarter. Stephens Consulting LLC raised its stake in Netflix by 150.0% in the 2nd quarter. Stephens Consulting LLC now owns 25 shares of the Internet television network's stock valued at $33,000 after purchasing an additional 15 shares during the last quarter. Finally, Rossby Financial LCC acquired a new position in Netflix in the 2nd quarter valued at $35,000. 80.93% of the stock is owned by institutional investors and hedge funds.

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.

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