Zacks Investment Research downgraded shares of Netflix (NASDAQ:NFLX) from a buy rating to a hold rating in a research note published on Wednesday morning.
According to Zacks, “Netflix's shares have vastly outperformed the industry in the past year. The company’s efforts to attract viewers through investing in more regional programming is leading to robust addition of international subscribers. The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 117.58 million subscribers globally. We believe continuing subscriber addition and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward. However, increasing market spends and higher investments on original/acquired content will continue to hurt profitability, at least in the near term. Rising competition is also a major concern.”
A number of other analysts also recently issued reports on NFLX. Goldman Sachs set a $250.00 price objective on Netflix and gave the stock a buy rating in a research note on Tuesday, November 28th. Vetr raised Netflix from a buy rating to a strong-buy rating and set a $211.28 price objective on the stock in a research note on Wednesday, November 29th. MKM Partners lifted their target price on Netflix from $230.00 to $245.00 and gave the stock a buy rating in a report on Thursday, November 30th. Bank of America lifted their target price on Netflix from $225.00 to $199.00 and gave the stock a buy rating in a report on Friday, December 1st. Finally, BidaskClub cut Netflix from a buy rating to a hold rating in a report on Saturday, December 2nd. Four investment analysts have rated the stock with a sell rating, seventeen have given a hold rating, thirty-one have issued a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of Buy and an average price target of $257.74.
Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Monday, January 22nd. The Internet television network reported $0.41 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $0.41. Netflix had a return on equity of 17.20% and a net margin of 4.78%. The business had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.28 billion. During the same quarter in the previous year, the company posted $0.15 EPS. The company’s revenue was up 32.6% compared to the same quarter last year. equities analysts expect that Netflix will post 2.73 earnings per share for the current fiscal year.
In other news, insider Jonathan Friedland sold 2,743 shares of the business’s stock in a transaction on Wednesday, January 3rd. The stock was sold at an average price of $205.59, for a total value of $563,933.37. Following the completion of the transaction, the insider now directly owns 1,147 shares of the company’s stock, valued at approximately $235,811.73. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Richard N. Barton sold 700 shares of the business’s stock in a transaction on Tuesday, March 20th. The stock was sold at an average price of $314.38, for a total value of $220,066.00. Following the completion of the transaction, the director now directly owns 7,393 shares of the company’s stock, valued at $2,324,211.34. The disclosure for this sale can be found here. Over the last three months, insiders sold 454,899 shares of company stock valued at $122,453,300. Corporate insiders own 4.90% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Cambridge Investment Research Advisors Inc. raised its position in shares of Netflix by 4.1% in the 4th quarter. Cambridge Investment Research Advisors Inc. now owns 46,013 shares of the Internet television network’s stock worth $8,833,000 after acquiring an additional 1,801 shares in the last quarter. Certified Advisory Corp bought a new position in shares of Netflix in the 4th quarter worth $378,000. Wagner Wealth Management LLC bought a new position in shares of Netflix in the 4th quarter worth $125,000. D.B. Root & Company LLC acquired a new position in Netflix during the 4th quarter valued at about $994,000. Finally, Xact Kapitalforvaltning AB increased its position in Netflix by 9.4% during the 4th quarter. Xact Kapitalforvaltning AB now owns 76,669 shares of the Internet television network’s stock valued at $14,717,000 after buying an additional 6,602 shares in the last quarter. 81.62% of the stock is owned by hedge funds and other institutional investors.
Netflix Company Profile
Netflix, Inc, an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. It operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. The company offers TV shows and movies, including original series, documentaries, and feature films.
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