Netflix (NASDAQ:NFLX) Stock Price Up 11.8% on Strong Earnings

Netflix, Inc. (NASDAQ:NFLX) shot up 11.8% during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $999.00 and last traded at $972.34. 7,201,798 shares traded hands during trading, an increase of 81% from the average session volume of 3,986,886 shares. The stock had previously closed at $869.68.

The Internet television network reported $4.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.20 by $0.07. The company had revenue of $10.25 billion during the quarter, compared to analyst estimates of $10,141,900 billion. Netflix had a net margin of 20.70% and a return on equity of 35.86%. The business’s quarterly revenue was up 16.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.11 earnings per share.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on NFLX. Seaport Res Ptn upgraded Netflix from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, January 15th. Loop Capital increased their price objective on shares of Netflix from $925.00 to $1,000.00 and gave the company a “hold” rating in a research report on Wednesday. Evercore ISI boosted their target price on shares of Netflix from $950.00 to $1,100.00 and gave the stock an “outperform” rating in a research report on Wednesday. Rosenblatt Securities raised shares of Netflix from a “neutral” rating to a “buy” rating and raised their price target for the company from $680.00 to $1,494.00 in a report on Wednesday. Finally, Macquarie boosted their price objective on shares of Netflix from $965.00 to $1,150.00 and gave the stock an “outperform” rating in a report on Wednesday. Nine 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 company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $993.82.

Insiders Place Their Bets

In related news, CEO Theodore A. Sarandos sold 1,278 shares of the firm’s stock in a transaction that occurred on Tuesday, November 5th. The stock was sold at an average price of $767.05, for a total value of $980,289.90. Following the sale, the chief executive officer now directly owns 2,556 shares in the company, valued at $1,960,579.80. This trade represents a 33.33 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Richard N. Barton sold 5,698 shares of Netflix stock in a transaction on Friday, October 25th. The shares were sold at an average price of $756.00, for a total value of $4,307,688.00. Following the sale, the director now directly owns 246 shares in the company, valued at $185,976. The trade was a 95.86 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 152,198 shares of company stock valued at $127,616,898 over the last three months. Company insiders own 1.76% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of NFLX. Mayflower Financial Advisors LLC grew its position in Netflix by 60.1% in the 4th quarter. Mayflower Financial Advisors LLC now owns 988 shares of the Internet television network’s stock valued at $881,000 after buying an additional 371 shares in the last quarter. BSW Wealth Partners lifted its stake in shares of Netflix by 6.5% in the 4th quarter. BSW Wealth Partners now owns 1,562 shares of the Internet television network’s stock worth $1,392,000 after acquiring an additional 96 shares during the period. Bensler LLC boosted its holdings in shares of Netflix by 2.3% in the fourth quarter. Bensler LLC now owns 16,267 shares of the Internet television network’s stock valued at $14,499,000 after acquiring an additional 372 shares in the last quarter. Patriot Financial Group Insurance Agency LLC increased its stake in shares of Netflix by 3.6% during the fourth quarter. Patriot Financial Group Insurance Agency LLC now owns 1,510 shares of the Internet television network’s stock valued at $1,346,000 after acquiring an additional 53 shares during the period. Finally, Aspire Capital Advisors LLC bought a new stake in Netflix during the fourth quarter worth approximately $213,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Netflix Price Performance

The business has a 50-day simple moving average of $886.64 and a two-hundred day simple moving average of $762.07. The company has a quick ratio of 1.13, a current ratio of 1.13 and a debt-to-equity ratio of 0.62. The stock has a market capitalization of $407.79 billion, a price-to-earnings ratio of 53.99, a P/E/G ratio of 1.40 and a beta of 1.27.

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.