Netflix, Inc. (NASDAQ:NFLX – Get Free Report)’s share price was up 2.8% during mid-day trading on Tuesday . The stock traded as high as $73.75 and last traded at $72.39. Approximately 46,894,908 shares were traded during mid-day trading, an increase of 2% from the average session volume of 45,891,055 shares. The stock had previously closed at $70.40.
Trending Headlines about Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix reportedly agreed to a roughly $500 million global licensing deal for The Walking Dead universe. The agreement adds a well-known franchise to Netflix’s international catalog and supports its strategy of using recognizable content to drive viewing and subscriber retention. Netflix lands global streaming deal for The Walking Dead
- Positive Sentiment: Netflix is reportedly paying about $200 million for U.S. and Canadian rights to the 2027 FIFA Women’s World Cup. Management’s selective push into live events is intended to increase sign-ups, engagement and advertising opportunities. Netflix to pay for US Women’s World Cup broadcast rights
- Positive Sentiment: Netflix recently overtook the BBC as the top viewing choice in the United Kingdom, according to Ofcom-related reporting, highlighting the continued shift from traditional television toward streaming. Streaming emerges as fastest-growing media category
- Neutral Sentiment: Canada appears likely to remove a levy affecting entertainment streamers, which could modestly reduce Netflix’s regulatory and content-financing burden, although the company would still face other obligations. Netflix tax will soon be scrapped in Canada
- Negative Sentiment: Investors remain focused on Netflix’s quarterly revenue miss and weak forward guidance. Although earnings slightly exceeded estimates and revenue grew 13.4% year over year, the results reinforced concerns that the period of rapid growth is ending. Netflix: The days of rapid growth are over
- Negative Sentiment: Some recent releases, including 72 Hours and the second season of Ransom Canyon, have drawn criticism over reviews and viewership durability, raising questions about whether Netflix’s content spending consistently produces lasting engagement. Netflix’s 72 Hours receives poor reviews
Analyst Upgrades and Downgrades
A number of brokerages recently issued reports on NFLX. Citizens Jmp reiterated a “market perform” rating on shares of Netflix in a report on Wednesday, April 15th. BMO Capital Markets cut Netflix from an “outperform” rating to a “market perform” rating in a report on Monday, July 20th. The Goldman Sachs Group lowered Netflix from an “underweight” rating to a “sell” rating in a research note on Monday, July 20th. Piper Sandler restated an “overweight” rating and issued a $85.00 price objective (down from $115.00) on shares of Netflix in a report on Friday, July 17th. Finally, Seaport Research Partners cut shares of Netflix from a “buy” rating to a “neutral” rating in a report on Monday, July 20th. Four investment analysts have rated the stock with a Strong Buy rating, thirty-three have assigned a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Netflix has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.
Netflix Price Performance
The firm has a market capitalization of $304.68 billion, a P/E ratio of 23.03, a P/E/G ratio of 0.91 and a beta of 1.52. 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 stock’s fifty day simple moving average is $77.32 and its 200 day simple moving average is $85.62.
Netflix (NASDAQ:NFLX – Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, beating the consensus estimate of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The business had revenue of $12.56 billion during the quarter, compared to analyst estimates of $12.58 billion. During the same period in the prior year, the firm posted $0.72 earnings per share. The company’s quarterly revenue was up 13.4% on a year-over-year basis. On average, equities research analysts predict that Netflix, Inc. will post 3.59 EPS for the current year.
Insider Activity at Netflix
In other Netflix news, insider David A. Hyman sold 5,722 shares of Netflix stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $88.08, for a total value of $503,993.76. Following the transaction, the insider directly owned 316,100 shares of the company’s stock, valued at approximately $27,842,088. The trade was a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Bradford L. Smith sold 35,990 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $77.52, for a total value of $2,789,944.80. Following the transaction, the director directly owned 79,690 shares in the company, valued at approximately $6,177,568.80. The trade was a 31.11% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 899,839 shares of company stock valued at $80,141,661 over the last three months. Company insiders own 1.24% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently added to or reduced their stakes in NFLX. Vanguard Group Inc. increased its holdings in shares of Netflix by 912.5% during the fourth quarter. Vanguard Group Inc. now owns 390,014,981 shares of the Internet television network’s stock valued at $36,567,805,000 after acquiring an additional 351,493,659 shares in the last quarter. State Street Corp boosted its stake in Netflix by 927.6% in the 4th quarter. State Street Corp now owns 176,780,995 shares of the Internet television network’s stock worth $16,574,986,000 after purchasing an additional 159,578,053 shares in the last quarter. Geode Capital Management LLC boosted its stake in Netflix by 892.0% in the 4th quarter. Geode Capital Management LLC now owns 99,598,678 shares of the Internet television network’s stock worth $9,305,336,000 after purchasing an additional 89,558,684 shares in the last quarter. Capital World Investors grew its position in 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 purchasing an additional 80,025,890 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its position in Netflix by 685.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 86,058,878 shares of the Internet television network’s stock worth $8,068,882,000 after purchasing an additional 75,107,069 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.
Netflix Company Profile
Netflix, Inc (NASDAQ: NFLX) is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.
The company’s primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.
Featured Stories
- Five stocks we like better than Netflix
- Microsoft Just Flipped the AI Spending Narrative Overnight
- Qualcomm’s Turnaround Is Working, So Why Is Wall Street Selling?
- Meta’s Earnings Show Why Wall Street Is Losing Patience With AI Spending
- Can Starbucks Keep This Turnaround Going? The Latest Results Say Yes
Receive News & Ratings for Netflix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Netflix and related companies with MarketBeat.com's FREE daily email newsletter.
