Netflix Inc. (NFLX) Shares Up 19.5% on Earnings Beat
Netflix Inc. (NASDAQ:NFLX)’s share price was up 19.5% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $119.70 and last traded at $119.26, with a volume of 32,869,834 shares traded. The stock had previously closed at $99.80.
The Internet television network reported $0.12 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.06 by $0.06. The firm had revenue of $2.29 billion for the quarter, compared to analyst estimates of $2.28 billion. Netflix had a return on equity of 5.59% and a net margin of 1.85%. The business’s quarterly revenue was up 31.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 EPS.
Several research analysts have weighed in on NFLX shares. Jefferies Group reaffirmed a “hold” rating and set a $120.00 price target on shares of Netflix in a research report on Monday, July 11th. Cowen and Company reaffirmed an “outperform” rating and set a $110.00 price target on shares of Netflix in a research report on Wednesday, October 12th. Cantor Fitzgerald reaffirmed a “buy” rating on shares of Netflix in a research report on Sunday, August 14th. FBR & Co reaffirmed a “market perform” rating and set a $90.00 price target (down previously from $104.00) on shares of Netflix in a research report on Sunday, July 17th. Finally, Piper Jaffray Cos. reaffirmed an “overweight” rating and set a $122.00 price target on shares of Netflix in a research report on Tuesday, July 12th. Seven investment analysts have rated the stock with a sell rating, fifteen have issued a hold rating and twenty-eight have given a buy rating to the stock. Netflix has a consensus rating of “Hold” and a consensus target price of $115.98.
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In other Netflix news, Director Richard N. Barton sold 1,400 shares of the firm’s stock in a transaction on Monday, October 3rd. The stock was sold at an average price of $100.00, for a total value of $140,000.00. Following the completion of the sale, the director now directly owns 16,262 shares of the company’s stock, valued at $1,626,200. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Richard N. Barton sold 2,800 shares of the firm’s stock in a transaction on Thursday, October 6th. The stock was sold at an average price of $104.27, for a total value of $291,956.00. Following the completion of the sale, the director now directly owns 15,254 shares of the company’s stock, valued at $1,590,534.58. The disclosure for this sale can be found here. 4.90% of the stock is owned by company insiders.
Hedge funds have recently added to or reduced their stakes in the company. National Pension Service increased its stake in Netflix by 8.7% in the third quarter. National Pension Service now owns 272,049 shares of the Internet television network’s stock worth $26,810,000 after buying an additional 21,790 shares in the last quarter. Highland Capital Management LLC increased its stake in Netflix by 218.5% in the third quarter. Highland Capital Management LLC now owns 10,350 shares of the Internet television network’s stock worth $1,020,000 after buying an additional 7,100 shares in the last quarter. Hollencrest Securities LLC purchased a new stake in Netflix during the third quarter worth about $618,000. Capstone Asset Management Co. raised its position in Netflix by 3.3% in the third quarter. Capstone Asset Management Co. now owns 29,406 shares of the Internet television network’s stock worth $2,898,000 after buying an additional 938 shares during the last quarter. Finally, Grassi Investment Management bought a new position in Netflix during the third quarter worth approximately $207,000. 78.41% of the stock is owned by institutional investors and hedge funds.
The company has a 50-day moving average price of $98.99 and a 200-day moving average price of $96.28. The company has a market capitalization of $51.10 billion, a PE ratio of 372.50 and a beta of 1.14.
Netflix, Inc (Netflix) is a provider of Internet television network. The Company’s members can watch original series, documentaries and feature films in Internet-connected screen. The Company has three operating segments: Domestic streaming, International streaming and Domestic DVD. The Domestic and International streaming segments derive revenues from monthly membership fees for services consisting of streaming content.
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