Netflix (NASDAQ:NFLX) Trading Up 2.5% – Here’s Why

Netflix, Inc. (NASDAQ:NFLX)’s stock price shot up 2.5% on Tuesday . The stock traded as high as $996.90 and last traded at $995.84. 1,539,365 shares changed hands during trading, a decline of 67% from the average session volume of 4,598,782 shares. The stock had previously closed at $971.99.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the company. Moffett Nathanson raised Netflix from a “neutral” rating to a “buy” rating and increased their price objective for the company from $850.00 to $1,100.00 in a report on Monday, March 17th. Pivotal Research lifted their price objective on shares of Netflix from $1,100.00 to $1,250.00 and gave the company a “buy” rating in a research report on Wednesday, January 22nd. KeyCorp upped their target price on shares of Netflix from $1,000.00 to $1,100.00 and gave the company an “overweight” rating in a report on Wednesday, January 22nd. The Goldman Sachs Group lifted their price target on Netflix from $850.00 to $960.00 and gave the stock a “neutral” rating in a report on Wednesday, January 22nd. Finally, Robert W. Baird lifted their target price on Netflix from $875.00 to $1,200.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 22nd. Ten investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $1,016.78.

Netflix Price Performance

The stock has a market cap of $414.37 billion, a PE ratio of 48.90, a P/E/G ratio of 2.12 and a beta of 1.38. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.22 and a current ratio of 1.22. The business has a 50 day moving average price of $967.54 and a two-hundred day moving average price of $864.18.

Netflix (NASDAQ:NFLX) last released its quarterly earnings results on Tuesday, January 21st. The Internet television network reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.20 by $0.07. Netflix had a net margin of 22.34% and a return on equity of 38.32%. The firm had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $10.14 billion. During the same quarter in the prior year, the firm posted $2.11 earnings per share. The business’s quarterly revenue was up 16.0% on a year-over-year basis. Research analysts expect that Netflix, Inc. will post 24.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Netflix news, Director Richard N. Barton sold 6,364 shares of the business’s stock in a transaction on Tuesday, January 7th. The shares were sold at an average price of $879.38, for a total transaction of $5,596,374.32. Following the transaction, the director now directly owns 246 shares of the company’s stock, valued at approximately $216,327.48. The trade was a 96.28 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Chairman Reed Hastings sold 35,868 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $888.08, for a total transaction of $31,853,653.44. Following the completion of the sale, the chairman now directly owns 114 shares of the company’s stock, valued at approximately $101,241.12. This represents a 99.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 288,583 shares of company stock valued at $279,611,567 over the last quarter. 1.76% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in NFLX. Life Line Wealth Management LLC purchased a new stake in shares of Netflix in the 4th quarter worth approximately $209,000. Fire Capital Management LLC purchased a new stake in shares of Netflix in the fourth quarter worth $352,000. Mascagni Wealth Management Inc. bought a new position in shares of Netflix during the fourth quarter valued at $528,000. Prostatis Group LLC increased its holdings in shares of Netflix by 3.7% during the fourth quarter. Prostatis Group LLC now owns 754 shares of the Internet television network’s stock valued at $672,000 after acquiring an additional 27 shares in the last quarter. Finally, M1 Capital Management LLC purchased a new position in shares of Netflix in the 4th quarter worth about $320,000. Institutional investors own 80.93% of the company’s stock.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.