Netflix (NASDAQ:NFLX) Shares Up 1.5% – Here’s What Happened
by Danessa Lincoln · The Markets DailyShares of Netflix, Inc. (NASDAQ:NFLX – Get Free Report) traded up 1.5% on Wednesday. The company traded as high as $69.80 and last traded at $69.70. 29,955,006 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 42,455,055 shares. The stock had previously closed at $68.69.
Trending Headlines about Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Morgan Stanley maintained an Overweight rating while trimming its price target from $83 to $80, implying meaningful upside from recent levels. Other commentary argues Netflix is undervalued based on its long-term cash-generation potential. Morgan Stanley price target
- Positive Sentiment: Some investors remain bullish near the stock’s 52-week low, citing Netflix’s decade of content-production expertise, healthy margins, buybacks and potential growth from advertising, live programming and other newer formats. The company is scheduled to report third-quarter results on October 20. Why investors are buying Netflix
- Positive Sentiment: Netflix is paying approximately $200 million for U.S. rights to the 2027 Women’s World Cup, expanding its live-sports presence and potentially supporting engagement, advertising and subscriber growth. The investment also raises questions about content economics. Netflix Women’s World Cup rights
- Neutral Sentiment: Netflix released a trailer for The Altruists, an eight-episode fictionalized series about the FTX collapse. The November 19 release could attract attention, but its commercial impact is uncertain. Netflix FTX series trailer
- Negative Sentiment: Netflix reportedly plans to eliminate about 5% of its global workforce as early as next week. The cuts could be the company’s largest since 2022 and signal pressure to control operating costs as competition from YouTube and other streaming platforms increases. Netflix workforce reductions
- Negative Sentiment: Bearish commentary highlights decelerating revenue growth, rising content expenses and potentially weaker viewer engagement. Netflix’s second-quarter revenue grew 13.4%, while management expects third-quarter growth to slow to approximately 11.7%, increasing scrutiny ahead of earnings. Netflix growth and cost concerns
- Negative Sentiment: Solana co-founder Anatoly Yakovenko criticized Netflix’s FTX drama, potentially creating reputational and audience backlash, though the effect on the company’s financial results is likely limited. Criticism of Netflix FTX series
Analyst Ratings Changes
A number of research firms recently issued reports on NFLX. CLSA initiated coverage on shares of Netflix in a research note on Monday, July 20th. They set an “outperform” rating on the stock. BMO Capital Markets restated an “outperform” rating on shares of Netflix in a report on Tuesday, September 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Netflix in a research report on Tuesday, September 22nd. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $90.00 price objective on shares of Netflix in a research note on Tuesday. Finally, KGI Securities downgraded Netflix from an “outperform” rating to a “neutral” rating and set a $75.00 price target for the company. in a research report on Friday, July 17th. Four analysts have rated the stock with a Strong Buy rating, thirty-five have assigned a Buy rating, fifteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $94.70.
View Our Latest Report on Netflix
Netflix Stock Down 1.4%
The company has a market cap of $293.91 billion, a P/E ratio of 22.21, a price-to-earnings-growth ratio of 0.98 and a beta of 1.62. 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 business’s fifty day moving average is $75.48 and its two-hundred day moving average is $81.49.
Netflix (NASDAQ:NFLX – Get Free Report) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping analysts’ consensus estimates 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 the consensus estimate of $12.58 billion. During the same period in the prior year, the firm earned $0.72 EPS. The company’s revenue for the quarter was up 13.4% compared to the same quarter last year. Equities analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.
Insider Buying and Selling at Netflix
In other news, CEO Gregory K. Peters sold 27,312 shares of the stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $73.54, for a total transaction of $2,008,524.48. Following the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $8,893,265.74. This represents a 18.42% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Spencer Neumann sold 9,248 shares of the firm’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value 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. This represents a 11.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 179,045 shares of company stock worth $13,132,194 over the last quarter. Insiders own 1.24% of the company’s stock.
Institutional Trading of Netflix
Hedge funds have recently added to or reduced their stakes in the business. Cornerstone Financial Management LLC bought a new position in shares of Netflix during the fourth quarter valued at approximately $26,000. Merkkuri Wealth Advisors LLC bought a new stake in Netflix during the 1st quarter valued at $31,000. South Plains Financial Inc. purchased a new position in shares of Netflix in the 4th quarter valued at $33,000. Bayban increased its holdings in shares of Netflix by 400.0% in the 1st quarter. Bayban now owns 350 shares of the Internet television network’s stock valued at $34,000 after acquiring an additional 280 shares during the period. Finally, Clal Insurance Enterprises Holdings Ltd bought a new position in shares of Netflix in the 2nd quarter worth $26,000. 80.93% of the stock is owned by hedge funds and other institutional investors.
About Netflix
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.