Netflix (NASDAQ:NFLX) Hits New 52-Week High After Strong Earnings

Netflix, Inc. (NASDAQ:NFLX) shares reached a new 52-week high during trading on Wednesday following a better than expected earnings announcement. The stock traded as high as $997.00 and last traded at $984.48, with a volume of 574670 shares traded. The stock had previously closed at $869.68.

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

Wall Street Analyst Weigh In

Several equities analysts have recently commented on NFLX shares. Wells Fargo & Company increased their price target on shares of Netflix from $758.00 to $797.00 and gave the stock an “overweight” rating in a research report on Friday, October 18th. Citigroup raised their price objective on shares of Netflix from $725.00 to $920.00 and gave the stock a “neutral” rating in a research note on Thursday, December 5th. Wolfe Research reaffirmed an “outperform” rating on shares of Netflix in a research note on Friday, October 18th. StockNews.com raised shares of Netflix from a “hold” rating to a “buy” rating in a research note on Saturday, December 21st. Finally, Deutsche Bank Aktiengesellschaft raised their price target on shares of Netflix from $650.00 to $875.00 and gave the company a “hold” rating in a report on Wednesday. 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 company’s stock. According to MarketBeat, Netflix has an average rating of “Moderate Buy” and a consensus target price of $993.82.

Insiders Place Their Bets

In related news, Director Richard N. Barton sold 5,698 shares of the firm’s 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 completion of the transaction, the director now owns 246 shares of the company’s stock, valued at approximately $185,976. This trade represents a 95.86 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Reed Hastings sold 48,363 shares of Netflix stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $896.60, for a total transaction of $43,362,265.80. Following the completion of the transaction, the chairman now directly owns 114 shares of the company’s stock, valued at approximately $102,212.40. This trade represents a 99.76 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 152,198 shares of company stock valued at $127,616,898. Insiders own 1.76% of the company’s stock.

Institutional Investors Weigh In On Netflix

Several hedge funds and other institutional investors have recently made changes to their positions in NFLX. RPg Family Wealth Advisory LLC acquired a new position in shares of Netflix in the 3rd quarter worth approximately $25,000. E Fund Management Hong Kong Co. Ltd. raised its holdings in Netflix by 700.0% during the third quarter. E Fund Management Hong Kong Co. Ltd. now owns 48 shares of the Internet television network’s stock worth $34,000 after buying an additional 42 shares during the last quarter. MidAtlantic Capital Management Inc. bought a new stake in shares of Netflix in the 3rd quarter worth $37,000. FSA Wealth Management LLC bought a new stake in shares of Netflix in the 3rd quarter worth $38,000. Finally, First Personal Financial Services bought a new position in Netflix during the third quarter valued at about $40,000. 80.93% of the stock is owned by institutional investors.

Netflix Price Performance

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 cap of $407.79 billion, a P/E ratio of 53.99, a price-to-earnings-growth ratio of 1.40 and a beta of 1.27. The business’s 50-day simple moving average is $886.64 and its two-hundred day simple moving average is $762.07.

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.