Netflix, Inc. (NFLX) Upgraded to Buy at Zacks Investment Research
Netflix, Inc. (NASDAQ:NFLX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Friday. The brokerage currently has a $219.00 price objective on the Internet television network’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 11.81% from the company’s previous close.
According to Zacks, “Netflix is benefitting from its focus on original programming and international expansion. 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.”
NFLX has been the topic of a number of other research reports. Raymond James Financial, Inc. restated an “outperform” rating and set a $205.00 price objective (up previously from $165.00) on shares of Netflix in a research note on Tuesday, July 18th. Stifel Nicolaus boosted their price objective on Netflix from $200.00 to $230.00 and gave the stock a “buy” rating in a research note on Thursday. J P Morgan Chase & Co restated an “overweight” rating and set a $225.00 price objective (up previously from $210.00) on shares of Netflix in a research note on Friday. Cantor Fitzgerald restated an “overweight” rating and set a $190.00 price objective on shares of Netflix in a research note on Thursday, July 13th. Finally, Vetr upgraded Netflix from a “strong sell” rating to a “sell” rating and set a $177.49 price objective on the stock in a research note on Tuesday, September 19th. Two equities research analysts have rated the stock with a sell rating, eighteen have issued a hold rating and thirty-one have issued a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average price target of $191.24.
Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Monday, July 17th. The Internet television network reported $0.15 EPS for the quarter, missing the Zacks’ consensus estimate of $0.16 by ($0.01). The company had revenue of $2.79 billion for the quarter, compared to analyst estimates of $2.76 billion. Netflix had a return on equity of 12.82% and a net margin of 3.55%. The company’s revenue for the quarter was up 32.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.09 EPS.
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In related news, Director Richard N. Barton sold 2,000 shares of the company’s stock in a transaction on Thursday, October 12th. The shares were sold at an average price of $196.16, for a total value of $392,320.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Reed Hastings sold 109,214 shares of the company’s stock in a transaction on Monday, July 24th. The stock was sold at an average price of $188.61, for a total transaction of $20,598,852.54. Following the completion of the sale, the chief executive officer now owns 109,214 shares of the company’s stock, valued at $20,598,852.54. The disclosure for this sale can be found here. Insiders sold 318,067 shares of company stock worth $57,315,706 over the last ninety days. 4.90% of the stock is currently owned by company insiders.
A number of large investors have recently modified their holdings of the stock. Capital Research Global Investors boosted its holdings in Netflix by 3.6% in the third quarter. Capital Research Global Investors now owns 51,745,376 shares of the Internet television network’s stock worth $5,099,507,000 after purchasing an additional 1,777,574 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Netflix by 2.9% in the second quarter. Vanguard Group Inc. now owns 27,950,272 shares of the Internet television network’s stock worth $4,176,049,000 after purchasing an additional 789,190 shares in the last quarter. BlackRock Inc. boosted its holdings in Netflix by 1.7% in the second quarter. BlackRock Inc. now owns 25,663,728 shares of the Internet television network’s stock worth $3,834,416,000 after purchasing an additional 423,968 shares in the last quarter. FMR LLC boosted its holdings in Netflix by 12.4% in the second quarter. FMR LLC now owns 23,633,237 shares of the Internet television network’s stock worth $3,531,042,000 after purchasing an additional 2,605,731 shares in the last quarter. Finally, State Street Corp boosted its holdings in Netflix by 2.7% in the first quarter. State Street Corp now owns 17,535,737 shares of the Internet television network’s stock worth $2,591,946,000 after purchasing an additional 463,143 shares in the last quarter. Hedge funds and other institutional investors own 81.02% 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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