Netflix (NASDAQ:NFLX) Trading 1.1% Higher After Earnings Beat

Netflix, Inc. (NASDAQ:NFLX)’s share price shot up 1.1% during mid-day trading on Tuesday following a stronger than expected earnings report. The company traded as high as $871.00 and last traded at $867.66. 1,874,615 shares changed hands during mid-day trading, a decline of 39% from the average session volume of 3,077,705 shares. The stock had previously closed at $858.10.

The Internet television network reported $4.27 earnings per share for the quarter, topping the consensus estimate of $4.20 by $0.07. Netflix had a return on equity of 39.48% and a net margin of 22.34%. The firm had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $10,141,900 billion. During the same period in the prior year, the business posted $2.11 earnings per share. The company’s revenue for the quarter was up 16.0% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on NFLX. Seaport Res Ptn raised shares of Netflix from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, January 15th. JPMorgan Chase & Co. increased their target price on shares of Netflix from $1,000.00 to $1,150.00 and gave the stock an “overweight” rating in a report on Wednesday. UBS Group boosted their price target on shares of Netflix from $1,040.00 to $1,150.00 and gave the company a “buy” rating in a report on Wednesday. Wolfe Research upgraded shares of Netflix from a “peer perform” rating to an “outperform” rating and set a $1,100.00 price objective on the stock in a research note on Thursday. Finally, Jefferies Financial Group upped their target price on Netflix from $780.00 to $800.00 and gave the stock a “buy” rating in a report on Friday, October 18th. Nine equities research analysts have rated the stock with a hold rating, twenty-six have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $996.94.

Insider Buying and Selling

In related news, insider David A. Hyman sold 267 shares of the business’s stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $765.67, for a total transaction of $204,433.89. Following the completion of the sale, the insider now directly owns 31,610 shares in the company, valued at approximately $24,202,828.70. The trade was a 0.84 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Richard N. Barton sold 6,364 shares of the firm’s stock in a transaction on Tuesday, January 7th. The shares were sold at an average price of $879.38, for a total value of $5,596,374.32. Following the completion of the transaction, the director now owns 246 shares in the company, valued at $216,327.48. The trade was a 96.28 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 152,198 shares of company stock worth $127,616,898 in the last 90 days. Insiders own 1.76% of the company’s stock.

Institutional Investors Weigh In On Netflix

Large investors have recently modified their holdings of the business. RPg Family Wealth Advisory LLC acquired a new position in Netflix during the third quarter worth about $25,000. E Fund Management Hong Kong Co. Ltd. lifted its stake in Netflix by 700.0% in the 3rd quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock worth $34,000 after purchasing an additional 42 shares in the last quarter. Decker Retirement Planning Inc. purchased a new position in Netflix in the 4th quarter worth approximately $43,000. EMC Capital Management acquired a new position in shares of Netflix during the 4th quarter worth approximately $45,000. Finally, MidAtlantic Capital Management Inc. purchased a new stake in shares of Netflix in the third quarter valued at approximately $37,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Netflix Stock Performance

The stock has a market cap of $420.99 billion, a price-to-earnings ratio of 49.67, a PEG ratio of 1.41 and a beta of 1.27. The company has a debt-to-equity ratio of 0.62, a current ratio of 1.13 and a quick ratio of 1.13. The firm has a fifty day moving average of $889.11 and a 200 day moving average of $763.41.

About Netflix

Netflix, Inc provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.