Netflix (NASDAQ:NFLX) Upgraded by Wall Street Zen to "Buy" Rating

Key Points

• Netflix has been upgraded to a "buy" rating by Wall Street Zen, signaling positive prospects for investors.
• Current stock consensus points towards a Moderate Buy rating, with an average price target of $1,317.58.
• Insider selling has been observed, with executives offloading significant shares which may raise concern among investors.

Netflix (NASDAQ:NFLX - Get Free Report) was upgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

NFLX has been the topic of a number of other reports. Rosenblatt Securities boosted their target price on Netflix from $1,514.00 to $1,515.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Phillip Securities downgraded Netflix from a "hold" rating to a "strong sell" rating in a research report on Monday, July 21st. JPMorgan Chase & Co. boosted their target price on Netflix from $1,230.00 to $1,300.00 and gave the stock a "neutral" rating in a research report on Friday, July 18th. Sanford C. Bernstein boosted their target price on Netflix from $1,200.00 to $1,390.00 and gave the stock an "outperform" rating in a research report on Thursday, July 17th. Finally, Citigroup reiterated a "neutral" rating and set a $1,250.00 target price (up from $1,020.00) on shares of Netflix in a research report on Thursday, May 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Netflix has an average rating of "Moderate Buy" and a consensus price target of $1,317.58.

Netflix Stock Down 1.3%

Netflix stock opened at $1,188.44 on Friday. The company has a debt-to-equity ratio of 0.58, a current ratio of 1.34 and a quick ratio of 1.34. Netflix has a 1-year low of $677.88 and a 1-year high of $1,341.15. The company has a market cap of $505.00 billion, a PE ratio of 50.64, a price-to-earnings-growth ratio of 2.03 and a beta of 1.60. The stock's 50 day moving average price is $1,218.15 and its 200 day moving average price is $1,131.45.

Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Thursday, July 17th. The Internet television network reported $7.19 EPS for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. The company had revenue of $11.08 billion for the quarter, compared to the consensus estimate of $11.04 billion. Netflix had a return on equity of 42.50% and a net margin of 24.58%.Netflix's quarterly revenue was up 15.9% compared to the same quarter last year. During the same period in the previous year, the business earned $4.88 earnings per share. Netflix has set its FY 2025 guidance at EPS. Q3 2025 guidance at 6.870-6.870 EPS. On average, sell-side analysts predict that Netflix will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider David A. Hyman sold 424 shares of the company's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $1,158.67, for a total value of $491,276.08. Following the sale, the insider directly owned 31,610 shares in the company, valued at $36,625,558.70. This represents a 1.32% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Reed Hastings sold 25,959 shares of the company's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $1,207.71, for a total value of $31,350,943.89. Following the completion of the sale, the director owned 394 shares in the company, valued at $475,837.74. This represents a 98.50% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 89,348 shares of company stock valued at $109,498,489. Insiders own 1.37% of the company's stock.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently added to or reduced their stakes in the business. Optima Capital LLC increased its stake in Netflix by 3.5% in the second quarter. Optima Capital LLC now owns 239 shares of the Internet television network's stock valued at $320,000 after purchasing an additional 8 shares during the last quarter. Unified Investment Management increased its stake in Netflix by 1.7% in the second quarter. Unified Investment Management now owns 474 shares of the Internet television network's stock valued at $635,000 after purchasing an additional 8 shares during the last quarter. Plancorp LLC increased its stake in Netflix by 0.6% in the second quarter. Plancorp LLC now owns 1,278 shares of the Internet television network's stock valued at $1,711,000 after purchasing an additional 8 shares during the last quarter. Five Oceans Advisors increased its stake in Netflix by 1.1% in the second quarter. Five Oceans Advisors now owns 751 shares of the Internet television network's stock valued at $1,006,000 after purchasing an additional 8 shares during the last quarter. Finally, Old Port Advisors increased its stake in Netflix by 1.3% in the second quarter. Old Port Advisors now owns 624 shares of the Internet television network's stock valued at $836,000 after purchasing an additional 8 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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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