Netflix (NASDAQ:NFLX) Stock Jumps 3.1% – Here’s What Happened
by Amy Steele · The Cerbat GemNetflix, Inc. (NASDAQ:NFLX – Get Free Report) was up 3.1% on Thursday. The stock traded as high as $67.49 and last traded at $67.05. Approximately 58,347,220 shares were traded during mid-day trading, an increase of 37% from the average daily volume of 42,721,422 shares. The stock had previously closed at $65.04.
Key Netflix News
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix’s third-quarter earnings exceeded expectations, with EPS of $0.87 versus an estimated $0.82. Revenue rose 11.9% year over year to approximately $12.87 billion, while operating income increased 34.6%, supporting the view that profits are still expanding despite slower sales growth. The Truth About Netflix’s Massive Stock Buybacks
- Positive Sentiment: Netflix continues to repurchase shares at a significant pace. Commentary suggests the buybacks are part of a systematic capital-allocation plan rather than an opportunistic response to the sell-off, but they may still support per-share earnings and investor sentiment. The Truth About Netflix’s Massive Stock Buybacks
- Positive Sentiment: Several analysts view the lower valuation as attractive. BMO sees substantial upside, while UBS, JPMorgan, Bank of America and TD Cowen retained positive ratings despite reducing price targets. Cathie Wood’s Ark Invest also bought shares after the earnings-driven decline. Buy the Post-Earnings Selloff in Netflix Stock, Says BMO
Analyst Ratings Changes
NFLX has been the topic of several research analyst reports. Loop Capital decreased their price target on shares of Netflix from $115.00 to $95.00 and set a “buy” rating on the stock in a report on Friday, July 24th. Guggenheim cut their price objective on shares of Netflix from $80.00 to $78.00 and set a “buy” rating for the company in a research note on Wednesday. Seaport Research Partners set a $85.00 target price on Netflix in a report on Wednesday. Morgan Stanley set a $77.00 price objective on shares of Netflix and gave the company an “overweight” rating in a research report on Wednesday. Finally, HSBC cut Netflix from a “buy” rating to a “hold” rating and reduced their target price for the company from $96.00 to $76.00 in a research note on Tuesday, September 22nd. Three analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, seventeen have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $89.59.
View Our Latest Stock Analysis on Netflix
Netflix Stock Up 3.1%
The firm has a market capitalization of $279.19 billion, a P/E ratio of 19.38, a P/E/G ratio of 0.97 and a beta of 1.62. The company has a fifty day simple moving average of $74.52 and a 200 day simple moving average of $79.74. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39.
Netflix (NASDAQ:NFLX – Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating the consensus estimate of $0.82 by $0.05. Netflix had a net margin of 29.69% and a return on equity of 42.69%. The company had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. During the same period in the prior year, the firm posted $0.59 EPS. Netflix’s revenue for the quarter was up 11.9% on a year-over-year basis. On average, equities analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.
Insider Buying and Selling
In other Netflix news, CEO Theodore A. Sarandos sold 27,312 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $73.35, for a total transaction of $2,003,335.20. Following the completion of the sale, the chief executive officer directly owned 178,954 shares in the company, valued at approximately $13,126,275.90. The trade was a 13.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 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, Director Richard N. Barton sold 720 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $75.27, for a total value of $54,194.40. Following the completion of the transaction, the director directly owned 2,460 shares in the company, valued at approximately $185,164.20. This represents a 22.64% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 179,045 shares of company stock worth $13,132,194 in the last three months. 1.24% of the stock is currently owned by company insiders.
Institutional Inflows and Outflows
Institutional investors and hedge funds have recently modified their holdings of the business. American Capital Advisory LLC grew its holdings in Netflix by 0.8% during the first quarter. American Capital Advisory LLC now owns 13,990 shares of the Internet television network’s stock valued at $1,345,000 after purchasing an additional 109 shares during the period. CWS Financial Advisors LLC grew its position in shares of Netflix by 3.2% during the first quarter. CWS Financial Advisors LLC now owns 3,612 shares of the Internet television network’s stock valued at $347,000 after purchasing an additional 112 shares in the last quarter. Warner Group LLC increased its stake in Netflix by 2.2% in the 1st quarter. Warner Group LLC now owns 5,230 shares of the Internet television network’s stock worth $503,000 after acquiring an additional 114 shares during the last quarter. Financial Avengers Inc. raised its stake in Netflix by 9.8% during the first quarter. Financial Avengers Inc. now owns 1,290 shares of the Internet television network’s stock valued at $124,000 after purchasing an additional 115 shares in the last quarter. Finally, PAX Financial Group LLC boosted its holdings in shares of Netflix by 2.5% in the 1st quarter. PAX Financial Group LLC now owns 4,847 shares of the Internet television network’s stock worth $466,000 after purchasing an additional 116 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.
About Netflix
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.