Netflix (NASDAQ:NFLX) Trading 2.3% Higher – Should You Buy?

Netflix, Inc. (NASDAQ:NFLX)’s stock price traded up 2.3% during mid-day trading on Monday . The company traded as high as $73.95 and last traded at $73.33. Approximately 33,806,415 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 45,854,605 shares. The stock had previously closed at $71.71.

Analysts Set New Price Targets

A number of research analysts have commented on NFLX shares. Stephens started coverage on shares of Netflix in a research note on Friday, July 17th. They set an “overweight” rating on the stock. Sanford C. Bernstein set a $95.00 target price on shares of Netflix and gave the stock an “outperform” rating in a research report on Friday, July 17th. China Intl Cap upgraded shares of Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. Barclays reduced their price target on shares of Netflix from $85.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Friday, July 17th. Finally, Robert W. Baird set a $90.00 price target on Netflix and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. Four equities research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, seventeen have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $103.48.

Netflix Trading Up 2.3%

The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 0.39. The firm’s 50 day simple moving average is $76.66 and its two-hundred day simple moving average is $85.38. The stock has a market cap of $305.34 billion, a P/E ratio of 23.08, a price-to-earnings-growth ratio of 0.90 and a beta of 1.52.

Netflix (NASDAQ:NFLX) last issued its earnings results on Thursday, July 16th. The Internet television network reported $0.80 earnings per share for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Netflix had a net margin of 28.22% and a return on equity of 40.02%. The company had revenue of $12.56 billion for the quarter, compared to analysts’ expectations of $12.58 billion. During the same period in the prior year, the company earned $0.72 earnings per share. The firm’s revenue was up 13.4% compared to the same quarter last year. As a group, equities research analysts predict that Netflix, Inc. will post 3.59 earnings per share for the current fiscal year.

Insider Transactions at Netflix

In other Netflix news, CFO Spencer Adam Neumann sold 9,253 shares of the firm’s stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $88.95, for a total value of $823,054.35. Following the transaction, the chief financial officer owned 73,787 shares of the company’s stock, valued at $6,563,353.65. This trade represents a 11.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Gregory K. Peters sold 27,312 shares of Netflix stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $88.69, for a total value of $2,422,301.28. Following the completion of the transaction, the chief executive officer owned 120,931 shares of the company’s stock, valued at approximately $10,725,370.39. The trade was a 18.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 492,289 shares of company stock valued at $42,186,530 over the last ninety days. Insiders own 1.24% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Turning Point Benefit Group Inc. grew its position in shares of Netflix by 13,400.0% during the fourth quarter. Turning Point Benefit Group Inc. now owns 270 shares of the Internet television network’s stock worth $25,000 after acquiring an additional 268 shares during the last quarter. Imprint Wealth LLC bought a new stake in Netflix in the 3rd quarter valued at about $25,000. Cornerstone Financial Management LLC acquired a new position in Netflix during the 4th quarter valued at about $26,000. Atlas Capital Advisors Inc. acquired a new position in Netflix during the 4th quarter valued at about $26,000. Finally, Jessup Wealth Management Inc bought a new position in Netflix in the 4th quarter worth about $27,000. 80.93% of the stock is currently owned by institutional investors.

About Netflix

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.