Netflix Downgraded to Hold Rating by StockNews.com

Netflix (NASDAQ:NFLX) has been downgraded from a "buy" rating to a "hold" rating by StockNews.com in a research note published on Friday.

In recent evaluations, other analysts have also provided their insights regarding Netflix's stock. Jefferies Financial Group recently raised their price target for Netflix from $780.00 to $800.00 while maintaining a "buy" rating. This update was shared on October 18th. Also noteworthy is that China Renaissance initiated coverage on Netflix's shares on September 5th, assigning a "hold" rating with a price target of $680.00. Meanwhile, JPMorgan Chase & Co. increased their price target from $850.00 to $1,010.00 and classified Netflix stock as "overweight" on Wednesday. Additionally, Evercore ISI lifted their price objective from $775.00 to $950.00, labeling the stock as "outperform" in a report from December 2nd. Wells Fargo & Company also amended their target price for Netflix from $758.00 to $797.00, adopting an "overweight" rating in a note issued on October 18th. Overall, two analysts have rated Netflix with a sell, ten have given a hold rating, and twenty-four analysts have assigned a buy rating. According to data from MarketBeat, the stock has an average consensus rating of "Moderate Buy" with a target price averaging $787.85.

Recent Stock Performance

On Friday, shares of Netflix saw a slight decline of 0.7%, closing down $6.68 at $918.87. The trading volume reached 2,484,887 shares, below the typical volume of 3,623,790. Netflix boasts a substantial market capitalization of approximately $392.78 billion, with a price-to-earnings ratio of 52.00 and a price-to-earnings growth ratio of 1.80. The stock has fluctuated between a twelve-month low of $461.86 and a high of $941.75.

Quarterly Performance

Netflix recently reported its quarterly earnings on October 17th. The company reported earnings per share (EPS) of $5.40 for the quarter, exceeding analysts' expectations of $5.09 by $0.31. Their revenue for the quarter was $9.82 billion, beating the anticipated figure of $9.77 billion. The firm achieved a net margin of 20.70% and a return on equity of 35.86%. Analysts forecast that Netflix will have an EPS of 19.78 for the current fiscal year.

Insider Transactions

In insider trading news, Chairman Reed Hastings sold 48,363 shares of Netflix on December 2nd at an average price of $896.60, amounting to around $43.4 million in total value. Following this sale, Hastings' remaining shares in the company are valued at approximately $102,212, reflecting a drastic decrease in ownership. In a separate transaction, Director Leslie J. Kilgore sold 428 shares on September 19th for about $306,020. Over the last 90 days, company insiders have sold a total of 165,405 shares worth $129.6 million. Currently, company insiders hold about 1.76% of Netflix's stock.

Institutional Holdings

Institutional investors and hedge funds have recently adjusted their stakes in Netflix. Notably, RPg Family Wealth Advisory LLC and Denver PWM LLC made new acquisitions worth $25,000 in Netflix during the third and second quarters, respectively. Proffitt & Goodson Inc. significantly increased their position in Netflix by 380.0%, acquiring additional shares and now holding 48 shares valued at approximately $32,000. E Fund Management Hong Kong Co. Ltd. also raised their holdings by 700.0% in the third quarter, while MidAtlantic Capital Management Inc. purchased a new stake around $37,000. Currently, institutional investors and hedge funds collectively control around 80.93% of Netflix's stock.

About Netflix

Netflix, Inc. is a leading provider of entertainment services, offering a wide array of TV series, documentaries, feature films, and games spanning numerous genres and languages. Members can enjoy streaming content across various internet-connected devices, including TVs and mobile devices.

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