Netflix (NFLX) Lowered to Hold at ValuEngine

Netflix (NASDAQ:NFLX) was downgraded by investment analysts at ValuEngine from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

A number of other brokerages have also recently commented on NFLX. UBS Group cut Netflix from a “buy” rating to a “neutral” rating and decreased their target price for the stock from $425.00 to $237.00 in a report on Wednesday, July 11th. Royal Bank of Canada raised their target price on Netflix to $450.00 and gave the stock an “outperform” rating in a report on Wednesday, October 17th. Goldman Sachs Group reaffirmed a “$375.13” rating and issued a $470.00 target price on shares of Netflix in a report on Wednesday, July 18th. Atlantic Securities reaffirmed a “buy” rating and issued a $413.00 target price on shares of Netflix in a report on Monday, September 3rd. Finally, SunTrust Banks raised their target price on Netflix from $270.00 to $415.00 and gave the stock a “hold” rating in a report on Friday, July 13th. Five investment analysts have rated the stock with a sell rating, eleven have assigned a hold rating and thirty have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $376.71.

NASDAQ NFLX opened at $299.83 on Friday. Netflix has a 1-year low of $178.38 and a 1-year high of $423.21. The firm has a market cap of $143.71 billion, a PE ratio of 239.86, a PEG ratio of 4.17 and a beta of 0.89. The company has a current ratio of 1.39, a quick ratio of 1.39 and a debt-to-equity ratio of 1.66.



Netflix (NASDAQ:NFLX) last announced its earnings results on Tuesday, October 16th. The Internet television network reported $0.89 EPS for the quarter, topping the Zacks’ consensus estimate of $0.68 by $0.21. Netflix had a return on equity of 29.52% and a net margin of 8.48%. The company had revenue of $4 billion for the quarter, compared to analysts’ expectations of $3.99 billion. During the same period last year, the firm earned $0.29 EPS. Netflix’s revenue for the quarter was up 34.0% compared to the same quarter last year. As a group, analysts forecast that Netflix will post 2.63 EPS for the current fiscal year.

In other news, CEO Reed Hastings sold 77,672 shares of the firm’s stock in a transaction dated Monday, August 20th. The stock was sold at an average price of $323.01, for a total transaction of $25,088,832.72. Following the completion of the transaction, the chief executive officer now owns 77,672 shares in the company, valued at $25,088,832.72. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Timothy M. Haley sold 21,882 shares of the firm’s stock in a transaction dated Tuesday, October 16th. The shares were sold at an average price of $336.41, for a total value of $7,361,323.62. Following the transaction, the director now owns 9,177 shares of the company’s stock, valued at approximately $3,087,234.57. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 322,155 shares of company stock valued at $109,909,378. Company insiders own 4.29% of the company’s stock.

Several institutional investors have recently modified their holdings of NFLX. FMR LLC grew its position in shares of Netflix by 6.1% during the second quarter. FMR LLC now owns 26,511,408 shares of the Internet television network’s stock valued at $10,377,360,000 after purchasing an additional 1,534,290 shares in the last quarter. Cornerstone Wealth Management LLC grew its position in shares of Netflix by 39,296.1% during the second quarter. Cornerstone Wealth Management LLC now owns 929,355 shares of the Internet television network’s stock valued at $2,334,000 after purchasing an additional 926,996 shares in the last quarter. BlackRock Inc. grew its position in shares of Netflix by 2.3% during the second quarter. BlackRock Inc. now owns 27,436,409 shares of the Internet television network’s stock valued at $10,739,434,000 after purchasing an additional 619,795 shares in the last quarter. PointState Capital LP grew its position in shares of Netflix by 1,249.4% during the second quarter. PointState Capital LP now owns 504,685 shares of the Internet television network’s stock valued at $197,549,000 after purchasing an additional 467,285 shares in the last quarter. Finally, Janus Henderson Group PLC grew its position in shares of Netflix by 32.8% during the second quarter. Janus Henderson Group PLC now owns 1,537,990 shares of the Internet television network’s stock valued at $601,982,000 after purchasing an additional 380,214 shares in the last quarter. Hedge funds and other institutional investors own 74.28% of the company’s stock.

About Netflix

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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