HSBC Downgrades Netflix (NASDAQ:NFLX) to Hold

Netflix (NASDAQ:NFLX) was downgraded by HSBC from a “buy” rating to a “hold” rating in a research note issued on Tuesday, Marketbeat.com reports. They presently have a $76.00 target price on the Internet television network’s stock. HSBC’s price target would indicate a potential upside of 3.60% from the stock’s previous close.

Other analysts have also issued research reports about the company. Daiwa Securities Group lowered their target price on Netflix from $102.00 to $76.00 and set an “outperform” rating on the stock in a report on Wednesday, July 22nd. Loop Capital lowered their price objective on shares of Netflix from $115.00 to $95.00 and set a “buy” rating on the stock in a research note on Friday, July 24th. KeyCorp restated an “overweight” rating and issued a $92.00 price objective (down from $115.00) on shares of Netflix in a research note on Monday, July 13th. Stephens started coverage on shares of Netflix in a research note on Friday, July 17th. They set an “overweight” rating for the company. Finally, Itau BBA Securities dropped their price objective on shares of Netflix from $151.40 to $96.00 and set an “outperform” rating on the stock in a report on Wednesday, August 5th. Four research analysts have rated the stock with a Strong Buy rating, thirty-three have issued a Buy rating, sixteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $95.51.

Netflix Trading Up 2.2%

Shares of NFLX stock opened at $73.36 on Tuesday. Netflix has a 12 month low of $65.08 and a 12 month high of $124.86. The company has a market cap of $305.47 billion, a PE ratio of 23.09, a price-to-earnings-growth ratio of 1.01 and a beta of 1.53. 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 business’s 50 day moving average is $75.81 and its two-hundred day moving average is $83.86.

Netflix (NASDAQ:NFLX) last announced its earnings results on Thursday, July 16th. The Internet television network reported $0.80 EPS for the quarter, topping 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 the consensus estimate of $12.58 billion. During the same quarter last year, the firm posted $0.72 EPS. The business’s quarterly revenue was up 13.4% on a year-over-year basis. Equities analysts predict that Netflix will post 3.59 EPS for the current year.

Insider Activity at Netflix

In other Netflix news, CFO Spencer Neumann sold 9,248 shares of the company’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $75.79, for a total transaction of $700,905.92. Following the sale, the chief financial officer directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Richard N. Barton sold 2,160 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $75.10, for a total value of $162,216.00. Following the completion of the transaction, the director directly owned 246 shares in the company, valued at $18,474.60. The trade was a 89.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 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

Several institutional investors and hedge funds have recently added to or reduced their stakes in NFLX. Cornerstone Financial Management LLC acquired a new stake in shares of Netflix in the fourth quarter valued at approximately $26,000. Core Wealth Advisors LLC acquired a new position in shares of Netflix during the fourth quarter valued at $28,000. Evolution Wealth Management Inc. lifted its stake in shares of Netflix by 2,284.6% during the fourth quarter. Evolution Wealth Management Inc. now owns 310 shares of the Internet television network’s stock valued at $29,000 after acquiring an additional 297 shares during the period. Merkkuri Wealth Advisors LLC bought a new position in Netflix in the first quarter valued at about $31,000. Finally, Cedar Mountain Advisors LLC increased its position in Netflix by 712.5% in the fourth quarter. Cedar Mountain Advisors LLC now owns 325 shares of the Internet television network’s stock worth $30,000 after purchasing an additional 285 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix News Roundup

Here are the key news stories impacting Netflix this week:

• Positive Sentiment: Pershing Square disclosed an approximately $1 billion Netflix position, signaling that investor Bill Ackman sees a potential recovery despite previously losing money on the stock in 2022. The investment may improve sentiment around Netflix’s valuation and long-term growth prospects. Ackman Bets $1 Billion on Netflix Redemption After $400 Million 2022 Loss
• Positive Sentiment: An analyst argued that “a heck of a lot of bad news” is already priced into Netflix, supporting a contrarian case for the shares. Netflix continues to post double-digit revenue growth and has announced a substantial share-repurchase program, which could provide valuation support. Netflix Stock Has a Heck of a Lot of Bad News Priced In
• Neutral Sentiment: Netflix’s decision to stay out of Paramount Skydance’s potential acquisition of Warner Bros. Discovery avoids the cost, leverage and integration risks of a major content deal. However, it also means Netflix will not gain direct access to Warner Bros. Discovery’s content assets, while Paramount and WBD shares benefited from progressing transaction talks.
• Negative Sentiment: Wells Fargo downgraded Netflix to Underweight from Equal Weight and cut its price target to $57 from $80, citing concerns about user engagement and the stock’s weakening momentum. The target implies substantial downside from recent levels. Wells Fargo Cuts Netflix to Underweight
• Negative Sentiment: Other coverage highlights intensifying competition from rival streaming platforms and difficulty producing consistent hit content. Netflix’s sharp post-earnings decline and upcoming third-quarter report on October 20 leave investors focused on engagement, subscriber trends and the company’s outlook.

Netflix Company Profile

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.