Netflix, Inc. (NFLX) Upgraded by Zacks Investment Research to Buy
Netflix, Inc. (NASDAQ:NFLX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Friday. The brokerage currently has a $207.00 price target on the Internet television network’s stock. Zacks Investment Research‘s target price indicates a potential upside of 6.49% from the stock’s current price.
According to Zacks, “Netflix is benefitting from its focus on original programming and international expansion. The recent increase in monthly subscriptions price for the U.S. consumers will drive Netflix’s top-line. The strength in content portfolio will help it to gain more subscribers across the globe. Going ahead, the company expects to add 0.75 million subscribers in the domestic streaming segment and 3.65 million subscribers in the international segment in the third quarter. The company’s efforts to attract viewers through investing in more regional programming should also boost user base. Plus, the company expects to report profits from International operations in the third quarter. In the past one year, Netflix shares have vastly outperformed the industry. Estimates have remained stable ahead of the upcoming earnings release. But, investments in original/acquired content remain a drag on profitability.”
Several other equities research analysts have also issued reports on the stock. Morgan Stanley set a $210.00 price target on shares of Netflix and gave the company a “buy” rating in a research note on Tuesday, July 18th. Vetr lowered shares of Netflix from a “hold” rating to a “sell” rating and set a $165.09 price target on the stock. in a research note on Wednesday, August 30th. Sanford C. Bernstein restated an “outperform” rating and set a $203.00 price objective (up from $178.00) on shares of Netflix in a research note on Tuesday, July 18th. Rosenblatt Securities upgraded shares of Netflix from a “neutral” rating to a “buy” rating and boosted their price objective for the stock from $155.00 to $200.00 in a research note on Tuesday, July 18th. Finally, BidaskClub upgraded shares of Netflix from a “hold” rating to a “buy” rating in a research note on Sunday, July 16th. Two analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and thirty-one have issued a buy rating to the company. Netflix has a consensus rating of “Buy” and an average target price of $183.99.
Netflix (NASDAQ:NFLX) opened at 194.39 on Friday. The firm’s 50-day moving average is $177.87 and its 200 day moving average is $163.29. Netflix has a 52-week low of $97.63 and a 52-week high of $194.49. The firm has a market capitalization of $83.93 billion, a P/E ratio of 236.48 and a beta of 1.09. Netflix also was the recipient of some unusual options trading activity on Thursday. Stock investors purchased 122,784 call options on the stock. This represents an increase of 283% compared to the average volume of 32,078 call options.
Netflix (NASDAQ:NFLX) last issued its quarterly earnings results on Monday, July 17th. The Internet television network reported $0.15 earnings per share (EPS) for the quarter, missing the 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 analyst estimates of $2.76 billion. During the same quarter in the previous year, the firm posted $0.09 earnings per share. The firm’s quarterly revenue was up 32.3% on a year-over-year basis. Equities analysts anticipate that Netflix will post $1.17 EPS for the current year.
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In related news, Director Richard N. Barton sold 2,000 shares of the firm’s stock in a transaction dated Tuesday, October 3rd. The shares were sold at an average price of $179.89, for a total transaction of $359,780.00. Following the transaction, the director now directly owns 7,930 shares of the company’s stock, valued at $1,426,527.70. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Reed Hastings sold 109,214 shares of the firm’s stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $188.61, for a total transaction of $20,598,852.54. Following the transaction, the chief executive officer now directly owns 109,214 shares in the company, valued at $20,598,852.54. The disclosure for this sale can be found here. Insiders have sold 310,325 shares of company stock worth $55,807,018 over the last three months. 4.90% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of NFLX. Almanack Investment Partners LLC. purchased a new stake in Netflix during the second quarter worth about $101,000. TD Capital Management LLC purchased a new stake in Netflix during the second quarter worth about $105,000. SRS Capital Advisors Inc. increased its holdings in Netflix by 3,361.9% during the first quarter. SRS Capital Advisors Inc. now owns 727 shares of the Internet television network’s stock worth $107,000 after buying an additional 706 shares during the last quarter. Harfst & Associates Inc. purchased a new stake in Netflix during the first quarter worth about $109,000. Finally, Aviance Capital Management LLC purchased a new stake in Netflix during the second quarter worth about $137,000. Institutional investors and hedge funds own 81.03% 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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