Netflix, Inc. (NASDAQ:NFLX) Rating Lowered to Hold at Zacks Investment Research
Netflix, Inc. (NASDAQ:NFLX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “Netflix will continue to benefit from its focus on original programming and international expansion. Netflix added 4.95 million subscribers in the last reported quarter, taking the total count to 98.75 million. Going ahead, the company expects to add 0.60 million subscribers in the domestic streaming segment and 2.60 million subscribers in the international segment in the second quarter. The company’s efforts to attract viewers through investing in more regional programming should also boost user base. In the past one year, Netflix shares outperformed the Zacks categorized Broadcast Radio/TV industry. But, investments in original/acquired content remain a drag on profitability. We believe that Netflix’s ability to effectively manage costs will dictate its future prospects. Estimates have remained stable ahead of the upcoming earnings release. “
Several other research analysts also recently commented on NFLX. MKM Partners restated a “buy” rating and set a $195.00 price objective on shares of Netflix in a report on Monday. Vetr upgraded Netflix from a “buy” rating to a “strong-buy” rating and set a $168.95 price target on the stock in a report on Thursday, June 29th. Credit Suisse Group set a $154.00 price target on Netflix and gave the company a “neutral” rating in a report on Tuesday. Instinet reiterated a “buy” rating on shares of Netflix in a report on Friday, June 2nd. Finally, Piper Jaffray Companies reiterated an “overweight” rating and issued a $166.00 price target (up from $21.00) on shares of Netflix in a report on Wednesday, April 19th. Two investment analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and twenty-seven have issued a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and an average price target of $148.98.
Shares of Netflix (NFLX) traded up 0.888% during mid-day trading on Tuesday, reaching $154.025. The company’s stock had a trading volume of 3,331,856 shares. Netflix has a 52-week low of $84.50 and a 52-week high of $166.87. The company has a market cap of $66.38 billion, a PE ratio of 199.256 and a beta of 0.99. The company has a 50-day moving average price of $157.81 and a 200 day moving average price of $144.87.
Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Monday, April 17th. The Internet television network reported $0.40 EPS for the quarter, topping the consensus estimate of $0.37 by $0.03. The company had revenue of $2.64 billion for the quarter, compared to the consensus estimate of $2.64 billion. Netflix had a return on equity of 12.73% and a net margin of 3.55%. Netflix’s quarterly revenue was up 34.7% on a year-over-year basis. During the same period last year, the business posted $0.06 EPS. Equities analysts expect that Netflix will post $1.05 earnings per share for the current year.
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In other news, Director Richard N. Barton sold 1,000 shares of the business’s stock in a transaction on Tuesday, June 27th. The shares were sold at an average price of $156.62, for a total transaction of $156,620.00. Following the completion of the sale, the director now directly owns 8,012 shares of the company’s stock, valued at approximately $1,254,839.44. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Reed Hastings sold 91,994 shares of Netflix stock in a transaction on Thursday, April 20th. The shares were sold at an average price of $140.97, for a total transaction of $12,968,394.18. Following the transaction, the chief executive officer now owns 91,994 shares in the company, valued at approximately $12,968,394.18. The disclosure for this sale can be found here. Insiders sold a total of 421,458 shares of company stock valued at $64,206,893 over the last ninety days. 4.90% of the stock is owned by corporate insiders.
Several institutional investors have recently bought and sold shares of the stock. Jennison Associates LLC raised its position in Netflix by 21.4% in the first quarter. Jennison Associates LLC now owns 12,947,211 shares of the Internet television network’s stock valued at $1,913,727,000 after buying an additional 2,279,835 shares during the last quarter. FMR LLC raised its position in Netflix by 6.6% in the first quarter. FMR LLC now owns 21,027,506 shares of the Internet television network’s stock valued at $3,108,076,000 after buying an additional 1,305,294 shares during the last quarter. Vanguard Group Inc. raised its position in Netflix by 3.5% in the first quarter. Vanguard Group Inc. now owns 27,161,082 shares of the Internet television network’s stock valued at $4,014,680,000 after buying an additional 921,283 shares during the last quarter. Tybourne Capital Management HK Ltd. raised its position in Netflix by 34.3% in the first quarter. Tybourne Capital Management HK Ltd. now owns 2,316,195 shares of the Internet television network’s stock valued at $342,357,000 after buying an additional 590,966 shares during the last quarter. Finally, Morgan Stanley raised its position in Netflix by 22.9% in the first quarter. Morgan Stanley now owns 3,061,631 shares of the Internet television network’s stock valued at $452,541,000 after buying an additional 571,126 shares during the last quarter. Institutional investors and hedge funds own 82.76% of the company’s stock.
Netflix, Inc is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States.
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