UBS Group Reiterates "Buy" Rating for Netflix (NASDAQ:NFLX)

Key Points

• UBS Group has reaffirmed its "Buy" rating for Netflix, setting a price target of $1,495.00, suggesting a potential upside of 26.32% from the stock's last close.
• Netflix's stock recently traded down 1.6% to $1,183.48, amidst the company's strong quarterly earnings report showing $7.19 EPS, exceeding analysts' expectations.
• Institutional investors significantly hold Netflix shares, with 80.93% of the company's stock owned by institutional investors like Vanguard Group and State Street Corp.

Netflix (NASDAQ:NFLX - Get Free Report)'s stock had its "buy" rating reaffirmed by equities research analysts at UBS Group in a report released on Thursday,MarketScreener Latest Ratings reports. They currently have a $1,495.00 price objective on the Internet television network's stock. UBS Group's price objective indicates a potential upside of 26.32% from the stock's previous close.

A number of other equities research analysts have also commented on NFLX. Robert W. Baird upped their price objective on shares of Netflix from $1,300.00 to $1,500.00 and gave the company an "outperform" rating in a research note on Monday, July 21st. Needham & Company LLC reissued a "buy" rating and issued a $1,500.00 price objective on shares of Netflix in a research note on Wednesday, September 10th. Wedbush reiterated an "outperform" rating on shares of Netflix in a report on Wednesday. TD Cowen cut their price target on Netflix from $1,450.00 to $1,425.00 and set a "buy" rating on the stock in a report on Tuesday, October 7th. Finally, Itau BBA Securities assumed coverage on shares of Netflix in a research report on Tuesday, October 7th. They set an "outperform" rating and a $1,514.00 target price on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $1,339.81.

Netflix Trading Down 1.6%

NASDAQ:NFLX traded down $19.81 during trading hours on Thursday, hitting $1,183.48. 2,435,104 shares of the company were exchanged, compared to its average volume of 3,901,196. The stock has a market capitalization of $502.90 billion, a price-to-earnings ratio of 50.43, a price-to-earnings-growth ratio of 2.04 and a beta of 1.59. Netflix has a one year low of $677.88 and a one year high of $1,341.15. The company has a fifty day simple moving average of $1,213.65 and a 200 day simple moving average of $1,172.31. The company has a current ratio of 1.34, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58.

Netflix (NASDAQ:NFLX - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The Internet television network reported $7.19 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.07 by $0.12. The company had revenue of $11.08 billion during 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%.The firm's revenue was up 15.9% compared to the same quarter last year. During the same period last year, the company earned $4.88 earnings per share. Sell-side analysts expect that Netflix will post 24.58 EPS for the current fiscal year.

Insiders Place Their Bets

In other Netflix news, insider Cletus R. Willems sold 238 shares of the stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $1,153.52, for a total value of $274,537.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Gregory K. Peters sold 2,026 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 12,781 shares of the company's stock, valued at $14,793,240.64. The trade was a 13.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 104,100 shares of company stock worth $122,710,980 in the last three months. 1.37% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netflix

Several institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Netflix by 1.0% during the second quarter. Vanguard Group Inc. now owns 38,379,084 shares of the Internet television network's stock worth $51,394,583,000 after purchasing an additional 381,824 shares during the period. State Street Corp boosted its stake in Netflix by 2.1% in the 2nd quarter. State Street Corp now owns 17,444,013 shares of the Internet television network's stock worth $23,359,801,000 after purchasing an additional 360,604 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of Netflix by 2.7% during the first quarter. Price T Rowe Associates Inc. MD now owns 11,732,066 shares of the Internet television network's stock valued at $10,940,505,000 after buying an additional 304,399 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Netflix by 2.4% in the second quarter. Geode Capital Management LLC now owns 9,926,733 shares of the Internet television network's stock worth $13,234,278,000 after buying an additional 229,182 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Netflix in the second quarter valued at approximately $7,929,645,000. 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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