Macquarie Lowers Netflix (NASDAQ:NFLX) to Neutral

Netflix (NASDAQ:NFLX) was downgraded by analysts at Macquarie from an “outperform” rating to a “neutral” rating in a report issued on Thursday, October 17th, Marketbeat.com reports. They currently have a $325.00 target price on the Internet television network’s stock, down from their prior target price of $375.00. Macquarie’s price objective points to a potential upside of 11.47% from the company’s previous close.

NFLX has been the subject of a number of other research reports. Monness Crespi & Hardt decreased their price objective on shares of Netflix from $440.00 to $340.00 and set a “buy” rating for the company in a research report on Wednesday, October 9th. Goldman Sachs Group reiterated a “buy” rating and issued a $400.00 price objective on shares of Netflix in a research report on Thursday, October 17th. Wells Fargo & Co started coverage on shares of Netflix in a research report on Monday, September 23rd. They issued a “market perform” rating and a $288.00 price objective for the company. Imperial Capital set a $451.00 price objective on shares of Netflix and gave the stock a “buy” rating in a research report on Thursday, September 12th. Finally, Raymond James decreased their price objective on shares of Netflix from $450.00 to $415.00 and set a “strong-buy” rating for the company in a research report on Monday, October 14th. Five equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating, twenty-four have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Netflix has a consensus rating of “Hold” and an average price target of $369.54.

NASDAQ:NFLX traded up $2.00 during trading hours on Thursday, reaching $291.57. The company’s stock had a trading volume of 4,509,000 shares, compared to its average volume of 8,183,516. Netflix has a 12 month low of $231.23 and a 12 month high of $385.99. The company has a debt-to-equity ratio of 1.81, a quick ratio of 0.73 and a current ratio of 0.73. The company has a market capitalization of $126.11 billion, a P/E ratio of 108.79, a price-to-earnings-growth ratio of 2.88 and a beta of 1.25. The stock has a 50 day moving average price of $276.43 and a two-hundred day moving average price of $323.02.

Netflix (NASDAQ:NFLX) last posted its quarterly earnings results on Wednesday, October 16th. The Internet television network reported $1.47 EPS for the quarter, beating the consensus estimate of $1.05 by $0.42. Netflix had a net margin of 7.49% and a return on equity of 23.65%. The company had revenue of $5.25 billion for the quarter, compared to analyst estimates of $5.25 billion. During the same period in the prior year, the company earned $0.89 earnings per share. The firm’s revenue was up 31.2% on a year-over-year basis. As a group, analysts predict that Netflix will post 3.33 EPS for the current fiscal year.

In related news, CEO Reed Hastings sold 40,061 shares of the company’s stock in a transaction dated Monday, October 21st. The shares were sold at an average price of $275.64, for a total transaction of $11,042,414.04. Following the completion of the transaction, the chief executive officer now owns 40,061 shares in the company, valued at approximately $11,042,414.04. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In the last 90 days, insiders have sold 135,702 shares of company stock valued at $38,290,015. Insiders own 4.29% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the business. Hartford Investment Management Co. raised its holdings in Netflix by 0.8% in the 2nd quarter. Hartford Investment Management Co. now owns 53,204 shares of the Internet television network’s stock valued at $19,543,000 after acquiring an additional 447 shares during the last quarter. Bailard Inc. raised its position in shares of Netflix by 14.6% during the 2nd quarter. Bailard Inc. now owns 787 shares of the Internet television network’s stock valued at $289,000 after buying an additional 100 shares during the period. NumerixS Investment Technologies Inc purchased a new stake in shares of Netflix during the 2nd quarter valued at approximately $4,353,000. Gryphon Financial Partners LLC purchased a new stake in shares of Netflix during the 2nd quarter valued at approximately $372,000. Finally, Dearborn Partners LLC raised its position in shares of Netflix by 10.4% during the 2nd quarter. Dearborn Partners LLC now owns 1,106 shares of the Internet television network’s stock valued at $406,000 after buying an additional 104 shares during the period. Institutional investors own 79.29% of the company’s stock.

About Netflix

Netflix, Inc provides Internet entertainment services. The company operates in three segments: Domestic streaming, International streaming, and Domestic DVD. It offers TV series, documentaries, and feature films across various genres and languages. The company provides members the ability to receive streaming content through a host of Internet-connected screens, including TVs, digital video players, television set-top boxes, and mobile devices.

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