Netflix (NASDAQ:NFLX) Shares Climb 2.7% – Here’s What Happened

Netflix, Inc. (NASDAQ:NFLX)’s stock price was up 2.7% on Thursday. The stock traded as high as $71.62 and last traded at $71.57. 45,707,793 shares changed hands during mid-day trading, an increase of 8% from the average daily volume of 42,505,129 shares. The stock had previously closed at $69.70.

Key Netflix News

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Several analysts and market commentators argue that Netflix is undervalued following its selloff. The company continues to deliver revenue growth and healthy margins, while its advertising business and other newer initiatives could provide additional growth. Netflix Q3 Preview: Attractively Priced Streaming Giant, Shares a Buy
• Positive Sentiment: The completed Paramount-Skydance and Warner Bros. Discovery combination creates a larger streaming competitor, but its estimated $80 billion debt burden and integration requirements may limit its ability to outspend Netflix. This gives Netflix some relative breathing room. Netflix Gains Breathing Room as a Major Studio Merger Closes
• Positive Sentiment: Disney’s licensing of titles to Netflix highlights the company’s distribution reach and cash-flow advantages as traditional media companies face pressure from declining linear television and high debt. Disney Is Opening the Door to Netflix
• Positive Sentiment: Morgan Stanley maintained an “overweight” rating, though it reduced its price target from $83 to $80. The revised target still implies upside from recent levels.
• Neutral Sentiment: Netflix released a trailer for an upcoming eight-episode series about the FTX collapse. The project could generate audience interest, but its direct financial impact is difficult to estimate. Netflix Drops Trailer for FTX Series
• Negative Sentiment: Bearish coverage points to slowing growth, rising content costs and intensifying competition. Netflix expects revenue growth to moderate further, making its valuation more dependent on advertising expansion and new growth engines. Three Reasons to Stay Away From Netflix

Analyst Upgrades and Downgrades

NFLX has been the subject of several research reports. China Intl Cap raised shares of Netflix to a “strong-buy” rating in a research note on Tuesday, July 21st. Rothschild & Co Redburn dropped their price target on Netflix from $120.00 to $93.00 and set a “buy” rating for the company in a research report on Tuesday, July 21st. Wells Fargo & Company cut Netflix from a “neutral” rating to an “underweight” rating and cut their price target for the company from $80.00 to $57.00 in a report on Friday, September 18th. Weiss Ratings reiterated a “hold (c)” rating on shares of Netflix in a research report on Tuesday, September 22nd. Finally, DZ Bank reissued a “buy” rating on shares of Netflix in a research note on Monday, July 20th. Four research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $94.70.

Netflix Trading Up 2.7%

The firm has a market capitalization of $298.01 billion, a PE ratio of 22.53, a PEG ratio of 0.97 and a beta of 1.62. The company has a current ratio of 1.14, a quick ratio of 1.14 and a debt-to-equity ratio of 0.39. The business has a fifty day moving average price of $75.52 and a two-hundred day moving average price of $81.64.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Thursday, July 16th. The Internet television network reported $0.80 earnings per share (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 firm had revenue of $12.56 billion for the quarter, compared to analyst estimates of $12.58 billion. During the same period in the previous year, the firm earned $0.72 EPS. Netflix’s revenue was up 13.4% on a year-over-year basis. Analysts expect that Netflix, Inc. will post 3.59 EPS for the current fiscal year.

Insider Buying and Selling

In other Netflix news, insider David Hyman sold 5,723 shares of the company’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $72.85, for a total transaction of $416,920.55. Following the transaction, the insider directly owned 316,100 shares in the company, valued at $23,027,885. This represents a 1.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Spencer Neumann sold 9,248 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $75.79, for a total value of $700,905.92. Following the transaction, the chief financial officer owned 73,787 shares of the company’s stock, valued at approximately $5,592,316.73. This represents a 11.14% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 179,045 shares of company stock valued at $13,132,194 over the last quarter. 1.24% of the stock is owned by corporate insiders.

Institutional Trading of Netflix

A number of institutional investors and hedge funds have recently bought and sold shares of NFLX. Aletheian Wealth Advisors LLC lifted its position in shares of Netflix by 4.8% during the third quarter. Aletheian Wealth Advisors LLC now owns 4,034 shares of the Internet television network’s stock worth $281,000 after purchasing an additional 186 shares in the last quarter. Apella Capital LLC grew its holdings in shares of Netflix by 54.8% in the third quarter. Apella Capital LLC now owns 34,674 shares of the Internet television network’s stock valued at $2,417,000 after purchasing an additional 12,279 shares in the last quarter. Gradient Investments LLC increased its stake in Netflix by 4.2% during the 3rd quarter. Gradient Investments LLC now owns 269,854 shares of the Internet television network’s stock worth $18,776,000 after buying an additional 10,885 shares during the period. Tactive Advisors LLC lifted its holdings in Netflix by 4.7% during the 3rd quarter. Tactive Advisors LLC now owns 8,067 shares of the Internet television network’s stock worth $561,000 after buying an additional 360 shares in the last quarter. Finally, New Covenant Trust Company N.A. lifted its holdings in Netflix by 9.9% during the 3rd quarter. New Covenant Trust Company N.A. now owns 6,597 shares of the Internet television network’s stock worth $459,000 after buying an additional 596 shares in 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 operates a subscription-based streaming service. It offers a broad range of television series, films, documentaries, and other programming, including original productions developed under the Netflix brand and licensed content from third-party studios.

The company also provides advertising-supported viewing options in some markets and has expanded into related entertainment categories, including mobile and cloud-based games, live programming, and consumer products associated with selected titles.