Key Points
- Netflix CEO Gregory Peters sold 27,312 shares at an average price of $63.62, worth about $1.74 million, reducing his stake by 18.61% to 119,412 shares.
- Netflix reported quarterly EPS of $0.87, beating the $0.82 consensus, while revenue rose 11.9% year over year to $12.87 billion.
- Despite the earnings beat, the article flags concerns about slowing growth and declining viewing; analysts’ consensus rating was “Moderate Buy,” with an average price target of $89.14.
Netflix, Inc. (NASDAQ:NFLX - Get Free Report) CEO Gregory Peters sold 27,312 shares of the stock in a transaction that occurred on Monday, November 9th. The stock was sold at an average price of $63.62, for a total value of $1,737,589.44. Following the completion of the transaction, the chief executive officer owned 119,412 shares of the company's stock, valued at $7,596,991.44. The trade was a 18.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website.
Netflix Price Performance
NFLX stock opened at $63.26 on Wednesday. The business has a fifty day moving average of $70.32 and a two-hundred day moving average of $80.76. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.43. The stock has a market cap of $259.77 billion, a price-to-earnings ratio of 18.28, a price-to-earnings-growth ratio of 0.94 and a beta of 1.62. Netflix, Inc. has a 52-week low of $61.39 and a 52-week high of $116.73.
Netflix (NASDAQ:NFLX - Get Free Report) last posted its earnings results on Tuesday, October 20th. The Internet television network reported $0.87 EPS for the quarter, beating analysts' consensus estimates of $0.82 by $0.05. Netflix had a return on equity of 42.69% and a net margin of 29.69%. The company had revenue of $12.87 billion for the quarter, compared to the consensus estimate of $12.87 billion. During the same quarter in the previous year, the business earned $0.59 earnings per share. The company's revenue for the quarter was up 11.9% on a year-over-year basis. As a group, research analysts anticipate that Netflix, Inc. will post 3.59 earnings per share for the current year.
Key Headlines Impacting Netflix
Here are the key news stories impacting Netflix this week:
- Positive Sentiment: Netflix’s EMEA revenue grew 11% year over year in the third quarter. Management says sustaining that growth in Europe will depend partly on preserving creative freedom amid regulation. Article: Netflix boss says creativity and regulation are not happy bedfellows in Europe
- Neutral Sentiment: Netflix launched an international campaign using 35mm film, supported by a social series about creatives’ viewing tastes. The campaign may support brand engagement, but its financial impact is unclear. Article: Netflix embraces 35mm film in international campaign
- Neutral Sentiment: A report described November short interest as totaling zero shares, with a 0.0-day days-to-cover ratio. That figure does not indicate meaningful short positioning, despite the report’s claim of a large increase.
- Negative Sentiment: Investor confidence remains a concern: coverage cites slowing Netflix growth and evidence that viewers are watching less. A content leadership shake-up is among management’s steps to address the challenge, but the concerns weigh on the growth outlook. Article: Why Netflix Stock Plunged 11% in October
- Negative Sentiment: Netflix also declined amid weakness across entertainment stocks. Coverage linked the sector’s reaction to concerns about the film outlook and debt at the newly combined Warner Bros.–Paramount, though it characterized Netflix and Disney as relatively less affected. Article: Skydance Sinks as Warner Bros. Film Slump Overshadows Earnings Beat
Analyst Ratings Changes
A number of analysts recently issued reports on the company. Guggenheim cut their price objective on Netflix from $80.00 to $78.00 and set a "buy" rating for the company in a research report on Wednesday, October 21st. Bank of America decreased their target price on shares of Netflix from $105.00 to $90.00 and set a "buy" rating on the stock in a research report on Wednesday, October 21st. Yorkville Ives initiated coverage on shares of Netflix in a research note on Monday, October 5th. They set an "in-line" rating and a $75.00 target price for the company. Itau BBA Securities dropped their price target on shares of Netflix from $151.40 to $96.00 and set an "outperform" rating for the company in a research report on Wednesday, August 5th. Finally, CLSA assumed coverage on shares of Netflix in a research report on Monday, July 20th. They set an "outperform" rating for the company. Two equities research analysts have rated the stock with a Strong Buy rating, thirty-five have given a Buy rating, seventeen have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $89.14.
View Our Latest Stock Report on NFLX
Institutional Investors Weigh In On Netflix
A number of institutional investors have recently modified their holdings of NFLX. Hartford Funds Management Co LLC lifted its position in shares of Netflix by 24.9% during the third quarter. Hartford Funds Management Co LLC now owns 26,151 shares of the Internet television network's stock worth $1,820,000 after purchasing an additional 5,219 shares in the last quarter. Ieq Capital LLC boosted its stake in shares of Netflix by 12.5% in the third quarter. Ieq Capital LLC now owns 470,371 shares of the Internet television network's stock valued at $32,728,000 after purchasing an additional 52,151 shares during the period. Focus Advisor Solutions LLC boosted its stake in shares of Netflix by 11.6% in the third quarter. Focus Advisor Solutions LLC now owns 72,509 shares of the Internet television network's stock valued at $5,045,000 after purchasing an additional 7,527 shares during the period. Colonial Trust Co SC boosted its stake in shares of Netflix by 4.1% in the third quarter. Colonial Trust Co SC now owns 41,084 shares of the Internet television network's stock valued at $2,859,000 after purchasing an additional 1,619 shares during the period. Finally, Checchi Capital Advisers LLC grew its holdings in shares of Netflix by 18.2% in the third quarter. Checchi Capital Advisers LLC now owns 31,646 shares of the Internet television network's stock valued at $2,202,000 after purchasing an additional 4,877 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.
Netflix Company Profile
(
Get Free Report)
Netflix, Inc. is an entertainment company that offers subscription-based streaming of television series, films, documentaries and other programming. Its service also includes mobile games and, in some markets, advertising-supported viewing plans. Netflix produces and licenses content, including titles made under its Netflix brand. Founded in 1997 by Reed Hastings and Marc Randolph as a DVD-by-mail rental business, the company launched its streaming service in 2007 and later expanded into original programming.
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