Netflix (NASDAQ:NFLX) Stock Gets Price Target Cut from Wedbush

Netflix (NASDAQ:NFLX) had its price objective reduced by Wedbush from $105.00 to $90.00 in a report issued on Friday morning, MarketBeat Ratings reports. They currently have an outperform rating on the Internet television network’s stock.

Several other equities analysts have also weighed in on the stock. Robert W. Baird set a $90.00 price target on shares of Netflix and gave the company an “outperform” rating in a research report on Wednesday, July 22nd. Phillip Securities upgraded shares of Netflix from a “moderate buy” rating to a “strong-buy” rating and set a $110.00 price objective for the company in a report on Sunday, July 19th. Seaport Research Partners lowered shares of Netflix from a “buy” rating to a “neutral” rating in a research report on Monday, July 20th. Piper Sandler reaffirmed an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a research report on Friday, July 17th. Finally, Stephens assumed coverage on shares of Netflix in a research note on Friday, July 17th. They issued an “overweight” rating on the stock. Three 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 two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $93.82.

Netflix Stock Performance

NASDAQ NFLX opened at $70.53 on Friday. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The business has a fifty day simple moving average of $75.17 and a 200 day simple moving average of $80.57. Netflix has a 12 month low of $65.08 and a 12 month high of $124.86. The firm has a market capitalization of $293.68 billion, a P/E ratio of 22.20, a PEG ratio of 1.00 and a beta of 1.62.

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

Insider Activity at Netflix

In other news, CFO Spencer Neumann sold 9,248 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares of the company’s stock, valued at approximately $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider David A. Hyman sold 5,723 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the sale, the insider directly owned 316,100 shares in the company, valued at $23,027,885. This trade represents a 1.78% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 in the last ninety days. Insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Signature Resources Capital Management LLC grew its stake in shares of Netflix by 41.8% during the third quarter. Signature Resources Capital Management LLC now owns 963 shares of the Internet television network’s stock worth $67,000 after buying an additional 284 shares during the last quarter. IFP Advisors Inc lifted its stake in shares of Netflix by 26.1% in the 3rd quarter. IFP Advisors Inc now owns 319,749 shares of the Internet television network’s stock valued at $22,248,000 after acquiring an additional 66,177 shares during the last quarter. Robertson Stephens Wealth Management LLC lifted its stake in shares of Netflix by 4.0% in the 3rd quarter. Robertson Stephens Wealth Management LLC now owns 55,739 shares of the Internet television network’s stock valued at $3,878,000 after acquiring an additional 2,143 shares during the last quarter. Frank Rimerman Advisors LLC boosted its holdings in shares of Netflix by 0.6% during the 3rd quarter. Frank Rimerman Advisors LLC now owns 579,839 shares of the Internet television network’s stock valued at $40,345,000 after acquiring an additional 3,538 shares in the last quarter. Finally, Western Pacific Wealth Management LP boosted its holdings in shares of Netflix by 73.1% during the 3rd quarter. Western Pacific Wealth Management LP now owns 6,060 shares of the Internet television network’s stock valued at $422,000 after acquiring an additional 2,560 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Key Stories Impacting Netflix

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Jefferies upgraded Netflix (NFLX) to “strong buy,” citing potential support from pricing increases and advertising growth. Wedbush also maintained an “outperform” rating, although it lowered its price target to $90 from $105. Netflix stock gets bullish analyst call
• Positive Sentiment: Options activity is signaling expectations for a substantial post-earnings move, while sentiment remains bullish in some derivatives markets. Technical analysts also see a possible double-bottom pattern, with a break above $83.60 potentially opening a path toward $102.12. Barchart Netflix earnings outlook
• Neutral Sentiment: Netflix is replacing Chief Content Officer Bela Bajaria with former Disney and Fox executive Peter Rice. His experience across scripted programming, live sports, unscripted content and theatrical distribution could help Netflix develop new hits, but the abrupt change before earnings highlights pressure to improve engagement. Netflix appoints Peter Rice
• Negative Sentiment: Netflix announced plans to eliminate about 1,000 jobs, or 6% of its workforce, one day before the content-chief transition. Although the cuts may improve efficiency, investors viewed them as evidence of a sharper growth reset and concerns about the company’s content strategy. Netflix shares under pressure after content chief departure
• Negative Sentiment: Pre-earnings concerns include slowing viewership, rising churn, declining engagement and intensifying competition. Analysts also warn that Netflix’s premium valuation leaves little room for disappointing guidance, while options traders anticipate a move that could take the stock toward a two-year low. Netflix Q3 earnings outlook

Netflix Company Profile

Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming services. Its platform offers a broad selection of television series, films, documentaries, stand-up specials and other programming, including content produced by Netflix and licensed from third-party studios and creators.

The company also develops and distributes original productions under the Netflix brand and has expanded into additional entertainment offerings, including mobile and cloud-based games in select markets and live programming.