Netflix, Inc. (NFLX) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research lowered shares of Netflix, Inc. (NASDAQ:NFLX) from a buy rating to a hold rating in a report published on Tuesday morning.

According to Zacks, “Netflix will continue to benefit from its focus on original programming and international expansion. Netflix added 4.95 million subscribers in the last reported quarter, taking the total count to 98.75 million. Going ahead, the company expects to add 0.60 million subscribers in the domestic streaming segment and 2.60 million subscribers in the international segment in the second quarter. The company’s efforts to attract viewers through investing in more regional programming should also boost user base. In the past one year, Netflix shares outperformed the Zacks categorized Broadcast Radio/TV industry. But, investments in original/acquired content remain a drag on profitability. We believe that Netflix’s ability to effectively manage costs will dictate its future prospects. Estimates have remained stable ahead of the upcoming earnings release. “

A number of other research firms have also weighed in on NFLX. Cantor Fitzgerald upped their price objective on Netflix from $165.00 to $190.00 and gave the stock an overweight rating in a research note on Tuesday, June 6th. Sanford C. Bernstein reaffirmed a buy rating and issued a $178.00 price objective on shares of Netflix in a research note on Wednesday, May 31st. William Blair reaffirmed an outperform rating on shares of Netflix in a research note on Thursday, May 25th. Vetr lowered Netflix from a buy rating to a hold rating and set a $166.13 price objective for the company. in a research note on Thursday, May 25th. Finally, Instinet reaffirmed a buy rating on shares of Netflix in a research note on Friday, June 2nd. Two research analysts have rated the stock with a sell rating, sixteen have issued a hold rating and twenty-nine have issued a buy rating to the company. The company presently has an average rating of Buy and a consensus target price of $152.72.

Shares of Netflix (NASDAQ:NFLX) traded up 0.36% during mid-day trading on Tuesday, hitting $161.70. The stock had a trading volume of 16,940,045 shares. Netflix has a 12 month low of $84.50 and a 12 month high of $166.87. The company has a market cap of $69.69 billion, a PE ratio of 209.18 and a beta of 0.99. The stock’s 50-day moving average is $157.80 and its 200 day moving average is $144.87.

Netflix (NASDAQ:NFLX) last released its quarterly earnings data on Monday, April 17th. The Internet television network reported $0.40 earnings per share for the quarter, topping analysts’ consensus estimates of $0.37 by $0.03. The firm had revenue of $2.64 billion during the quarter, compared to analyst estimates of $2.64 billion. Netflix had a return on equity of 25.29% and a net margin of 6.76%. The business’s quarterly revenue was up 34.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.06 earnings per share. On average, equities research analysts forecast that Netflix will post $1.05 earnings per share for the current fiscal year.

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In related news, Director Leslie J. Kilgore sold 1,078 shares of Netflix stock in a transaction dated Thursday, May 25th. The stock was sold at an average price of $162.00, for a total value of $174,636.00. Following the completion of the transaction, the director now owns 36,274 shares in the company, valued at approximately $5,876,388. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard N. Barton sold 1,000 shares of Netflix stock in a transaction dated Tuesday, April 18th. The shares were sold at an average price of $147.39, for a total value of $147,390.00. Following the completion of the transaction, the director now owns 8,012 shares of the company’s stock, valued at approximately $1,180,888.68. The disclosure for this sale can be found here. In the last 90 days, insiders sold 421,458 shares of company stock valued at $64,206,893. 4.90% of the stock is owned by company insiders.

Several institutional investors have recently made changes to their positions in the stock. Clean Yield Group acquired a new position in shares of Netflix during the first quarter valued at $103,000. TD Capital Management LLC acquired a new position in shares of Netflix during the second quarter valued at $105,000. SRS Capital Advisors Inc. raised its stake in Netflix by 3,361.9% in the first quarter. SRS Capital Advisors Inc. now owns 727 shares of the Internet television network’s stock valued at $107,000 after buying an additional 706 shares during the period. Harfst & Associates Inc. purchased a new stake in Netflix during the first quarter valued at approximately $109,000. Finally, Mitsubishi UFJ Securities Holdings Co. Ltd. raised its stake in Netflix by 24.2% in the first quarter. Mitsubishi UFJ Securities Holdings Co. Ltd. now owns 770 shares of the Internet television network’s stock valued at $114,000 after buying an additional 150 shares during the period. Hedge funds and other institutional investors own 82.77% of the company’s stock.

About Netflix

Netflix, Inc is a provider an Internet television network. The Company operates through three segments: Domestic streaming, International streaming and Domestic DVD. The Domestic streaming segment includes services that streams content to its members in the United States. The International streaming segment includes services that streams content to its members outside the United States.

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