Netflix (NASDAQ:NFLX) Shares Climb 1.8% - Here's Why

Key Points

• Netflix shares rose 1.8% to $68.69, with trading volume below the stock’s average daily level.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $95.18, despite several target-price reductions.
• Netflix reported quarterly earnings of $0.80 per share, narrowly beating estimates, while revenue rose 13.4% year over year to $12.56 billion. Insiders sold shares recently, while institutional investors own approximately 80.93% of the stock.

Shares of Netflix, Inc. (NASDAQ:NFLX - Get Free Report) were up 1.8% during trading on Tuesday. The stock traded as high as $68.78 and last traded at $68.69. 34,340,695 shares changed hands during trading, a decline of 19% from the average session volume of 42,558,652 shares. The stock had previously closed at $67.50.

Analyst Upgrades and Downgrades

NFLX has been the subject of several research reports. Citigroup reissued a "market perform" rating on shares of Netflix in a research report on Monday, August 17th. Pivotal Research lowered their target price on Netflix from $96.00 to $70.00 and set a "hold" rating for the company in a report on Friday, July 17th. CLSA started coverage on Netflix in a report on Monday, July 20th. They issued an "outperform" rating on the stock. Itau BBA Securities reduced their price objective on Netflix from $151.40 to $96.00 and set an "outperform" rating for the company in a research report on Wednesday, August 5th. Finally, TD Cowen reiterated a "buy" rating and set a $100.00 price objective on shares of Netflix in a report on Monday. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $95.18.

Netflix Stock Up 1.8%

The firm's 50-day simple moving average is $75.67 and its 200 day simple moving average is $81.97. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.14 and a current ratio of 1.14. The stock has a market capitalization of $286.02 billion, a P/E ratio of 21.62, a PEG ratio of 0.95 and a beta of 1.62.

Netflix (NASDAQ:NFLX - Get Free Report) last announced its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts' expectations of $12.58 billion. During the same quarter last year, the company earned $0.72 EPS. Netflix's revenue for the quarter was up 13.4% compared to the same quarter last year. As a group, research analysts expect that Netflix, Inc. will post 3.59 EPS for the current year.

Insider Buying and Selling

In related news, CEO Theodore Sarandos sold 27,312 shares of the firm's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total value of $2,003,335.20. Following the completion of the transaction, the chief executive officer directly owned 178,954 shares of the company's stock, valued at approximately $13,126,275.90. This trade represents a 13.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the business's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total transaction of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 179,045 shares of company stock worth $13,132,194 in the last quarter. 1.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Netflix

A number of institutional investors and hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of Netflix in the second quarter valued at approximately $24,902,221,000. State Street Corp lifted its holdings in Netflix by 4.9% during the 2nd quarter. State Street Corp now owns 180,129,582 shares of the Internet television network's stock valued at $12,861,252,000 after purchasing an additional 8,474,820 shares during the last quarter. Bank of America Corp DE lifted its holdings in Netflix by 4.3% during the 1st quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network's stock valued at $5,571,201,000 after purchasing an additional 2,376,349 shares during the last quarter. Invesco Ltd. boosted its position in Netflix by 835.9% during the fourth quarter. Invesco Ltd. now owns 43,462,696 shares of the Internet television network's stock worth $4,075,062,000 after purchasing an additional 38,818,947 shares during the period. Finally, Bank of New York Mellon Corp bought a new position in Netflix during the second quarter worth $1,906,482,000. 80.93% of the stock is owned by institutional investors.

Netflix Company Profile

Netflix, Inc NASDAQ: NFLX is a global entertainment company that operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.

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