Netflix (NASDAQ:NFLX) Trading 11.8% Higher on Better-Than-Expected Earnings

Netflix, Inc. (NASDAQ:NFLX)’s share price shot up 11.8% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $999.00 and last traded at $972.34. 7,201,798 shares changed hands during mid-day 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. Netflix had a net margin of 20.70% and a return on equity of 35.86%. The company 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 business earned $2.11 earnings per share. The company’s revenue for the quarter was up 16.0% compared to the same quarter last year.

Wall Street Analyst Weigh In

NFLX has been the subject of a number of analyst reports. Wolfe Research reiterated an “outperform” rating on shares of Netflix in a report on Friday, October 18th. Jefferies Financial Group upped their price target on Netflix from $780.00 to $800.00 and gave the stock a “buy” rating in a report on Friday, October 18th. Morgan Stanley raised their price objective on Netflix from $1,050.00 to $1,150.00 and gave the company an “overweight” rating in a research note on Wednesday. The Goldman Sachs Group increased their target price on shares of Netflix from $750.00 to $850.00 and gave the company a “neutral” rating in a report on Wednesday, January 8th. Finally, Needham & Company LLC increased their price objective on shares of Netflix from $800.00 to $1,150.00 and gave the company a “buy” rating in a research note on Wednesday. Nine research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $976.55.

Insider Buying and Selling

In other Netflix news, Director Richard N. Barton sold 6,364 shares of the company’s stock in a transaction on Tuesday, January 7th. The stock was sold at an average price of $879.38, for a total value of $5,596,374.32. Following the sale, the director now owns 246 shares of the company’s stock, valued at approximately $216,327.48. This represents a 96.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Chairman Reed Hastings sold 35,868 shares of the firm’s stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $888.08, for a total transaction of $31,853,653.44. Following the sale, the chairman now directly owns 114 shares in the company, valued at $101,241.12. This represents a 99.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 152,198 shares of company stock worth $127,616,898 in the last quarter. 1.76% of the stock is owned by insiders.

Institutional Trading of Netflix

Large investors have recently bought and sold shares of the company. Advisory Resource Group raised its holdings in shares of Netflix by 0.7% in the 3rd quarter. Advisory Resource Group now owns 1,746 shares of the Internet television network’s stock worth $1,238,000 after purchasing an additional 12 shares during the period. Insight Wealth Strategies LLC lifted its stake in shares of Netflix by 1.9% during the 4th quarter. Insight Wealth Strategies LLC now owns 656 shares of the Internet television network’s stock valued at $585,000 after buying an additional 12 shares in the last quarter. Sunflower Bank N.A. boosted its holdings in shares of Netflix by 2.1% in the fourth quarter. Sunflower Bank N.A. now owns 575 shares of the Internet television network’s stock worth $513,000 after acquiring an additional 12 shares during the period. D.B. Root & Company LLC raised its stake in shares of Netflix by 4.1% during the 4th quarter. D.B. Root & Company LLC now owns 331 shares of the Internet television network’s stock valued at $295,000 after purchasing an additional 13 shares during the period. Finally, New World Advisors LLC boosted its stake in Netflix by 2.0% in the 3rd quarter. New World Advisors LLC now owns 724 shares of the Internet television network’s stock worth $514,000 after purchasing an additional 14 shares during the period. Institutional investors and hedge funds own 80.93% of the company’s stock.

Netflix Stock Up 11.6 %

The stock has a fifty day simple moving average of $886.64 and a two-hundred day simple moving average of $762.07. The firm has a market cap of $414.70 billion, a PE ratio of 54.93, a price-to-earnings-growth ratio of 1.40 and a beta of 1.27. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 0.62.

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.