Netflix (NASDAQ:NFLX) Shares Up 2.3% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX) traded up 2.3% during mid-day trading on Monday . The stock traded as high as $73.95 and last traded at $73.33. 33,806,415 shares were traded during trading, a decline of 26% from the average session volume of 45,854,605 shares. The stock had previously closed at $71.71.

Analyst Ratings Changes

Several research firms recently commented on NFLX. UBS Group lowered their target price on Netflix from $130.00 to $115.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. Citigroup lowered Netflix from a “buy” rating to a “positive” rating in a research report on Monday, July 20th. BMO Capital Markets cut Netflix from an “outperform” rating to a “market perform” rating in a research note on Monday, July 20th. Robert W. Baird set a $90.00 price target on Netflix and gave the company an “outperform” rating in a report on Wednesday, July 22nd. Finally, Sanford C. Bernstein set a $95.00 price objective on shares of Netflix and gave the company an “outperform” rating in a research note on Friday, July 17th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $103.48.

Netflix Stock Performance

The stock has a market cap of $305.34 billion, a P/E ratio of 23.08, a PEG ratio of 0.90 and a beta of 1.52. The company has a fifty day moving average of $76.66 and a 200 day moving average of $85.38. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14.

Netflix (NASDAQ:NFLX) last released its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion during the quarter, compared to the consensus estimate of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The firm’s revenue for the quarter was up 13.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.72 earnings per share. On average, equities analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider David A. Hyman sold 5,722 shares of Netflix stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $88.08, for a total transaction of $503,993.76. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at $27,842,088. The trade was a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Reed Hastings sold 386,700 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $85.97, for a total transaction of $33,244,599.00. Following the completion of the sale, the director owned 3,940 shares in the company, valued at approximately $338,721.80. This trade represents a 98.99% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 492,289 shares of company stock valued at $42,186,530. 1.24% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Netflix

Hedge funds have recently made changes to their positions in the business. Turning Point Benefit Group Inc. boosted its holdings in Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after buying an additional 268 shares in the last quarter. Imprint Wealth LLC acquired a new position in Netflix in the third quarter worth approximately $25,000. Cornerstone Financial Management LLC bought a new position in shares of Netflix in the fourth quarter valued at $26,000. Atlas Capital Advisors Inc. bought a new position in shares of Netflix in the fourth quarter valued at $26,000. Finally, Jessup Wealth Management Inc acquired a new stake in shares of Netflix during the 4th quarter valued at $27,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

About Netflix

Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.

The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.