Zacks Investment Research cut shares of Netflix, Inc. (NASDAQ:NFLX) from a strong-buy rating to a hold rating in a report published 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.”
Several other equities analysts have also recently commented on the company. Moffett Nathanson reaffirmed a neutral rating on shares of Netflix in a report on Tuesday. Cantor Fitzgerald increased their price target on Netflix from $165.00 to $190.00 and gave the stock an overweight rating in a research report on Tuesday, June 6th. Sanford C. Bernstein restated a buy rating and set a $178.00 price target on shares of Netflix in a research report on Wednesday, May 31st. William Blair restated an outperform rating on shares of Netflix in a research report on Thursday, May 25th. Finally, Vetr lowered Netflix from a buy rating to a hold rating and set a $166.13 price target on the stock. in a research report on Thursday, May 25th. Two equities research analysts have rated the stock with a sell rating, sixteen have issued a hold rating and twenty-nine have assigned a buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $169.38.
Shares of Netflix (NASDAQ:NFLX) traded down 0.15% during mid-day trading on Wednesday, reaching $183.59. The company’s stock had a trading volume of 6,884,372 shares. The firm’s 50 day moving average is $157.45 and its 200-day moving average is $148.14. Netflix has a 52-week low of $85.01 and a 52-week high of $187.17. The company has a market capitalization of $79.20 billion, a PE ratio of 223.35 and a beta of 0.98. Netflix also was the recipient of some unusual options trading on Monday. Stock investors bought 105,623 call options on the company. This represents an increase of approximately 271% compared to the average volume of 28,474 call options.
Netflix (NASDAQ:NFLX) last issued its earnings results on Monday, July 17th. The Internet television network reported $0.15 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by $0.01. Netflix had a net margin of 3.55% and a return on equity of 12.82%. The firm had revenue of $2.79 billion during the quarter, compared to analysts’ expectations of $2.76 billion. During the same quarter last year, the firm earned $0.09 EPS. The business’s revenue for the quarter was up 32.3% compared to the same quarter last year. Analysts forecast that Netflix will post $1.15 EPS for the current year.
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In other news, insider Jonathan Friedland sold 2,496 shares of the firm’s stock in a transaction dated Wednesday, July 19th. The stock was sold at an average price of $182.17, for a total value of $454,696.32. Following the transaction, the insider now directly owns 1,232 shares in the company, valued at approximately $224,433.44. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, General Counsel David A. Hyman sold 14,021 shares of the firm’s stock in a transaction dated Tuesday, April 25th. The stock was sold at an average price of $150.00, for a total value of $2,103,150.00. Following the completion of the transaction, the general counsel now owns 41,629 shares in the company, valued at $6,244,350. The disclosure for this sale can be found here. Over the last three months, insiders sold 343,728 shares of company stock worth $53,858,193. 4.90% of the stock is owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the company. Raymond James Trust N.A. increased its position in Netflix by 57.0% in the first quarter. Raymond James Trust N.A. now owns 2,800 shares of the Internet television network’s stock worth $414,000 after buying an additional 1,017 shares during the period. CHURCHILL MANAGEMENT Corp increased its position in Netflix by 1,487.2% in the first quarter. CHURCHILL MANAGEMENT Corp now owns 190,989 shares of the Internet television network’s stock worth $28,230,000 after buying an additional 178,956 shares during the period. Paradigm Financial Advisors LLC purchased a new position in Netflix during the first quarter worth approximately $238,000. CENTRAL TRUST Co increased its position in Netflix by 408.4% in the first quarter. CENTRAL TRUST Co now owns 849 shares of the Internet television network’s stock worth $125,000 after buying an additional 682 shares during the period. Finally, Chevy Chase Trust Holdings Inc. increased its position in Netflix by 3.4% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 373,360 shares of the Internet television network’s stock worth $55,187,000 after buying an additional 12,440 shares during the period. Institutional investors own 82.77% of the company’s stock.
Netflix Company Profile
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.