Zacks Investment Research Upgrades Netflix (NFLX) to Buy

Netflix (NASDAQ:NFLX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday. The firm presently has a $329.00 price objective on the Internet television network’s stock. Zacks Investment Research‘s price target points to a potential upside of 13.90% from the company’s previous close.

According to Zacks, “Netflix's shares have vastly outperformed the industry in the past year. The company’s efforts to attract viewers through investing in more regional programming is leading to robust addition of international subscribers. The company remains confident of adding more subscribers as the trend of binge viewing is catching up fast. Netflix now has 117.58 million subscribers globally. We believe continuing subscriber addition and expanding content portfolio are the key catalysts that will help Netflix to sustain growth going forward. Estimates have been stable lately ahead of the company’s Q1 earnings release. However, increasing market spends and higher investments on original/acquired content will continue to hurt profitability, at least in the near term. The company has mixed record of earnings surprises in recent quarters.”

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NFLX has been the subject of several other reports. Vetr cut Netflix from a “hold” rating to a “sell” rating and set a $266.74 price objective for the company. in a report on Thursday, February 22nd. Credit Suisse Group reaffirmed a “neutral” rating and set a $266.00 price objective (up from $224.00) on shares of Netflix in a report on Tuesday, January 23rd. Loop Capital lifted their price objective on Netflix from $237.00 to $241.00 and gave the stock a “buy” rating in a report on Tuesday, January 2nd. Buckingham Research reissued a “neutral” rating and issued a $251.00 price target (up from $235.00) on shares of Netflix in a report on Thursday, January 18th. Finally, Barclays set a $285.00 price target on Netflix and gave the stock a “buy” rating in a report on Tuesday, January 23rd. Three equities research analysts have rated the stock with a sell rating, sixteen have assigned a hold rating, thirty-four have assigned a buy rating and one has given a strong buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus price target of $257.79.

Shares of NFLX stock opened at $288.85 on Friday. The firm has a market cap of $125,345.88, a P/E ratio of 231.08, a PEG ratio of 3.96 and a beta of 0.99. Netflix has a 1 year low of $138.66 and a 1 year high of $333.98. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 1.81.

Netflix (NASDAQ:NFLX) last issued its quarterly earnings data on Monday, January 22nd. The Internet television network reported $0.41 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.41. The firm had revenue of $3.29 billion during the quarter, compared to analysts’ expectations of $3.28 billion. Netflix had a return on equity of 17.20% and a net margin of 4.78%. Netflix’s revenue was up 32.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.15 earnings per share. research analysts predict that Netflix will post 2.73 earnings per share for the current year.

In other news, Director Richard N. Barton sold 700 shares of the company’s stock in a transaction dated Thursday, April 5th. The stock was sold at an average price of $283.39, for a total value of $198,373.00. Following the completion of the sale, the director now owns 7,393 shares of the company’s stock, valued at $2,095,102.27. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Theodore A. Sarandos sold 163,747 shares of the company’s stock in a transaction dated Thursday, February 8th. The stock was sold at an average price of $262.91, for a total value of $43,050,723.77. Following the completion of the sale, the insider now directly owns 23,953 shares of the company’s stock, valued at approximately $6,297,483.23. The disclosure for this sale can be found here. In the last three months, insiders have sold 452,009 shares of company stock valued at $121,912,410. 4.90% of the stock is owned by company insiders.

Hedge funds and other institutional investors have recently modified their holdings of the company. Balentine LLC boosted its position in shares of Netflix by 1,020.4% in the third quarter. Balentine LLC now owns 549 shares of the Internet television network’s stock worth $100,000 after buying an additional 500 shares during the period. James Hambro & Partners purchased a new stake in shares of Netflix in the fourth quarter worth about $106,000. Duncker Streett & Co. Inc. boosted its position in shares of Netflix by 47.1% in the fourth quarter. Duncker Streett & Co. Inc. now owns 625 shares of the Internet television network’s stock worth $120,000 after buying an additional 200 shares during the period. Wagner Wealth Management LLC purchased a new stake in shares of Netflix in the fourth quarter worth about $125,000. Finally, Crewe Advisors LLC purchased a new stake in shares of Netflix in the fourth quarter worth about $149,000. 81.62% of the stock is owned by institutional investors.

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Netflix Company Profile

Netflix, Inc, an Internet television network, engages in the Internet delivery of television (TV) shows and movies on various Internet-connected screens. It operates in three segments: Domestic Streaming, International Streaming, and Domestic DVD. The company offers TV shows and movies, including original series, documentaries, and feature films.

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