Zacks Investment Research Lowers Netflix, Inc. (NASDAQ:NFLX) to Hold
Netflix, Inc. (NASDAQ:NFLX) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Wednesday.
According to Zacks, “Netflix reported second-quarter 2017 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. A strong subscriber growth overshadowed the earnings miss. In the second quarter, Netflix added more subscribers than the guided number, benefitting from its focus on original programming and international expansion.In the third quarter, Netflix expects to add 0.75 million subscribers in the domestic streaming segment and 3.65 million in the international segment. Moreover, the company expects to report profits from International operations in the quarter. In the past one year, Netflix shares have vastly outperformed the Zacks categorized Broadcast Radio/TV industry. Nonetheless, investments in original/acquired content remain a drag on profitability. We believe Netflix’s ability to effectively manage costs will dictate its future prospects.”
NFLX has been the subject of several other research reports. Loop Capital reissued a “buy” rating and set a $167.00 price target on shares of Netflix in a research report on Monday, April 10th. Goldman Sachs Group, Inc. (The) reissued a “buy” rating and set a $170.00 price target on shares of Netflix in a research report on Friday, April 14th. Cantor Fitzgerald reissued a “buy” rating and set a $160.00 price target (up previously from $148.64) on shares of Netflix in a research report on Thursday, April 13th. MKM Partners reissued a “buy” rating and set a $175.00 price target on shares of Netflix in a research report on Monday, March 27th. Finally, Pivotal Research increased their price target on shares of Netflix from $170.00 to $175.00 and gave the company a “buy” rating in a research report on Tuesday, April 18th. Two equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and twenty-nine have given a buy rating to the company’s stock. Netflix presently has a consensus rating of “Buy” and a consensus target price of $169.38.
Netflix (NASDAQ:NFLX) traded up 2.69% during trading on Wednesday, hitting $188.54. 9,277,448 shares of the stock traded hands. Netflix has a 12 month low of $85.01 and a 12 month high of $191.50. The company has a 50-day moving average price of $158.04 and a 200-day moving average price of $148.40. The stock has a market cap of $81.40 billion, a PE ratio of 229.37 and a beta of 0.98.
Netflix (NASDAQ:NFLX) last announced its quarterly earnings data on Monday, July 17th. The Internet television network reported $0.15 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.16 by $0.01. Netflix had a net margin of 3.55% and a return on equity of 12.82%. The business had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.76 billion. During the same period last year, the company posted $0.09 EPS. Netflix’s revenue for the quarter was up 32.3% on a year-over-year basis. Equities research analysts expect that Netflix will post $1.16 EPS for the current year.
ILLEGAL ACTIVITY WARNING: This piece was originally published by American Banking News and is the property of of American Banking News. If you are viewing this piece on another publication, it was illegally copied and republished in violation of international copyright law. The legal version of this piece can be viewed at https://www.americanbankingnews.com/2017/07/23/zacks-investment-research-lowers-netflix-inc-nasdaqnflx-to-hold.html.
In other Netflix news, insider Gregory K. Peters sold 6,909 shares of Netflix stock in a transaction on Tuesday, April 25th. The shares were sold at an average price of $150.02, for a total transaction of $1,036,488.18. Following the completion of the transaction, the insider now directly owns 19,999 shares of the company’s stock, valued at $3,000,249.98. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Leslie J. Kilgore sold 1,211 shares of Netflix stock in a transaction on Tuesday, April 25th. The stock was sold at an average price of $147.38, for a total transaction of $178,477.18. Following the transaction, the director now directly owns 36,407 shares of the company’s stock, valued at $5,365,663.66. The disclosure for this sale can be found here. Insiders have sold 343,728 shares of company stock valued at $53,858,193 over the last ninety days. 4.90% of the stock is owned by insiders.
Several hedge funds have recently modified their holdings of NFLX. Jennison Associates LLC raised its stake in shares of Netflix by 21.4% in the first quarter. Jennison Associates LLC now owns 12,947,211 shares of the Internet television network’s stock worth $1,913,727,000 after buying an additional 2,279,835 shares in the last quarter. FMR LLC raised its stake in shares of Netflix by 6.6% in the first quarter. FMR LLC now owns 21,027,506 shares of the Internet television network’s stock worth $3,108,076,000 after buying an additional 1,305,294 shares in the last quarter. Vanguard Group Inc. raised its stake in shares of Netflix by 3.5% in the first quarter. Vanguard Group Inc. now owns 27,161,082 shares of the Internet television network’s stock worth $4,014,680,000 after buying an additional 921,283 shares in the last quarter. Tybourne Capital Management HK Ltd. raised its stake in shares of 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 worth $342,357,000 after buying an additional 590,966 shares in the last quarter. Finally, Morgan Stanley raised its stake in shares of Netflix by 22.9% in the first quarter. Morgan Stanley now owns 3,061,631 shares of the Internet television network’s stock worth $452,541,000 after buying an additional 571,126 shares in the last quarter. 82.77% of the stock is owned by hedge funds and other institutional investors.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Netflix Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Netflix Inc. and related companies with MarketBeat.com's FREE daily email newsletter.