Netflix, Inc. (NASDAQ:NFLX – Get Free Report)’s share price fell 4.7% during trading on Friday . The stock traded as low as $70.11 and last traded at $71.79. 113,504,702 shares changed hands during trading, an increase of 164% from the average daily volume of 42,965,824 shares. The stock had previously closed at $75.31.
Trending Headlines about Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Evercore maintained a bullish stance, describing Netflix’s recent weakness as a potential entry point. Separately, Bill Ackman’s Pershing Square has established a new position, signaling confidence in the company’s long-term prospects. Evercore wants investors to buy Netflix stock
- Positive Sentiment: Netflix continues investing in advertising, live events and sports, while its ad business and aggressive share repurchases could provide longer-term support. Management also remains open to acquiring additional international NFL rights. Netflix content chief defines event strategy
- Neutral Sentiment: Netflix, Amazon and YouTube formed a coalition to advocate for technology-neutral streaming and sports-rights regulations. The initiative could improve the industry’s regulatory environment, but it is unlikely to affect near-term earnings. Netflix joins a new streaming policy coalition
- Negative Sentiment: Wells Fargo downgraded NFLX to Underweight from Equal Weight and cut its price target to $57 from $80, implying substantial downside from recent trading levels. Analyst Steven Cahall said a quick recovery is unlikely. Netflix downgraded by Wells Fargo
- Negative Sentiment: The downgrade cited approximately 4% lower second-half viewership and more than 20% weaker viewing for Netflix’s top 100 original titles. Analysts warned that fewer breakout hits, rising churn risk and weaker engagement could pressure margins and cause investors to apply a lower valuation multiple. Netflix shares fall as Wells Fargo turns bearish
- Negative Sentiment: Coverage also highlighted competitive pressure from Disney, Netflix’s need to produce another global breakout hit, and potential costs associated with sports and other new formats. These concerns are driving the view that its core streaming momentum is weakening.
Wall Street Analysts Forecast Growth
NFLX has been the topic of several analyst reports. Rothschild & Co Redburn decreased their target price on shares of Netflix from $120.00 to $93.00 and set a “buy” rating on the stock in a research note on Tuesday, July 21st. Loop Capital decreased their price objective on shares of Netflix from $115.00 to $95.00 and set a “buy” rating for the company in a report on Friday, July 24th. Bank of America reduced their price target on shares of Netflix from $125.00 to $105.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. TD Cowen decreased their target price on Netflix from $112.00 to $100.00 and set a “buy” rating for the company in a research report on Friday, July 17th. Finally, Jefferies Financial Group dropped their price target on Netflix from $110.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, July 17th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, fifteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $95.99.
Netflix Price Performance
The firm’s 50-day moving average is $75.85 and its 200-day moving average is $84.21. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.14 and a quick ratio of 1.14. The company has a market capitalization of $298.93 billion, a P/E ratio of 22.60, a price-to-earnings-growth ratio of 1.08 and a beta of 1.53.
Netflix (NASDAQ:NFLX – Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, beating analysts’ consensus estimates of $0.79 by $0.01. The firm had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. Netflix had a return on equity of 40.02% and a net margin of 28.22%.The business’s quarterly revenue was up 13.4% on a year-over-year basis. During the same period in the previous year, the firm earned $0.72 EPS. Analysts predict that Netflix, Inc. will post 3.59 EPS for the current fiscal year.
Insiders Place Their Bets
In other Netflix news, CFO Spencer Neumann sold 9,248 shares of Netflix stock in a transaction on Monday, August 10th. The shares were sold at an average price of $75.79, for a total value of $700,905.92. Following the sale, the chief financial officer directly owned 73,787 shares in the company, valued at approximately $5,592,316.73. The trade was a 11.14% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider David A. Hyman sold 5,723 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total value of $416,920.55. Following the sale, the insider directly owned 316,100 shares in the company, valued at $23,027,885. This trade represents a 1.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 179,045 shares of company stock valued at $13,132,194. Insiders own 1.24% of the company’s stock.
Institutional Inflows and Outflows
Large investors have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Netflix in the 2nd quarter valued at about $24,902,221,000. Geode Capital Management LLC lifted its position in shares of Netflix by 892.0% in the fourth quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock valued at $9,305,336,000 after buying an additional 89,558,684 shares during the last quarter. Capital World Investors increased its holdings in shares of Netflix by 859.1% during the 4th quarter. Capital World Investors now owns 89,341,444 shares of the Internet television network’s stock worth $8,376,656,000 after acquiring an additional 80,025,890 shares during the last quarter. Norges Bank acquired a new position in shares of Netflix in the fourth quarter valued at $5,803,248,000. Finally, Bank of America Corp DE boosted its holdings in shares of Netflix by 4.3% during the first quarter. Bank of America Corp DE now owns 57,942,812 shares of the Internet television network’s stock worth $5,571,201,000 after acquiring an additional 2,376,349 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.
About Netflix
Netflix, Inc (NASDAQ:NFLX) is a global entertainment company that provides subscription-based streaming access to television series, films, documentaries and other video content. Its service includes Netflix-produced and licensed programming, with offerings that may vary by market. The company also provides an advertising-supported plan in selected countries and has expanded into mobile games and other interactive entertainment.
Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental service in the United States.
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