T. Rowe Price Associates, Inc. (I.. recently announced the acquisition of new stake in Netflix Inc. (NASDAQ:NFLX). The institutional investor has increased its shareholding in the Communication Services company by 0.55% to 20.63 million shares with purchase of 0.11 million shares. This fresh investment now brings its stake to 4.68% valued currently at $10.08 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.44 million to 19.58 million shares. And SSgA Funds Management, Inc. has lifted its position by 1.62% or 0.27 million shares – to 16.61 million shares.
With over 5.45 million Netflix Inc. (NFLX) shares trading Tuesday and a closing price of $490.58 on the day, the dollar volume was approximately $2.68 billion. The shares have shown a negative weekly performance of -0.26% and its price on 08/25/20 gained nearly 0.36%. Currently, there are 440.57M common shares owned by the public and among those 433.76M shares have been available to trade.
An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 41 analysts who have offered their price forecasts for NFLX have a consensus price objective of $522.18. The analysts have set the share’s price value over the next 12 months at a high of $625.00 and a low of $220.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Netflix Inc. stock is 2.30 for the next 12 months. The average price target is -7.11% below its last price level and a downside to the estimated low will see the stock lose -122.99% over that period. But an upside of 21.51% will see the stock hit the forecast high price target while mean target price for the stock is $550.00.
Insiders at the company have transacted a total of 294 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 73 of these insider trades were purchases, accounting for 1,419,309 shares. Insider sales of the common stock occurred on 221 occasions, with total insider shares sold totaling 3,890,864 shares.
The top 3 mutual fund holders in Netflix Inc. are American Funds Growth Fund of Ame, Vanguard Total Stock Market Index, and Vanguard 500 Index Fund. American Funds Growth Fund of Ame owns 26.86 million shares of the company’s stock, all valued at over $13.13 billion. The company sold -0.71 million shares recently to bring their total holdings to about 6.09% of the shares outstanding. Vanguard Total Stock Market Index sold 35088.0 shares to see its total holdings shrink to 12.5 million shares valued at over $6.11 billion and representing 2.84% of the shares outstanding. Vanguard 500 Index Fund sold 54923.0 shares to bring its total holdings to over 8.97 million shares at a value of $4.39 billion. Vanguard 500 Index Fund now owns shares totaling to 2.03% of the shares outstanding.
Shares of Netflix Inc. (NASDAQ: NFLX) opened at $488.19, down -$0.62 from a prior closing price of $488.81. However, the script later closed the day at $490.58, up 0.36%. The company’s stock has a 5-day price change of -0.26% and 16.84% over the past three months. NFLX shares are trading 51.61% year to date (YTD), with the 12-month market performance up to 66.31% higher. It has a 12-month low price of $252.28 and touched a high of $575.37 over the same period. Currently, 5.45 million shares have been traded, compared to an average intraday trading volume of 7.04 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.23%, 1.17%, and 24.18% respectively.
Institutional ownership of Netflix Inc. (NASDAQ: NFLX) shares accounts for 82.60% of the company’s 440.57M shares outstanding. Mutual fund holders own 4.46%, while other institutional holders and individual stakeholders account for 50.33% and 31.61% respectively.
It has a market capitalization of $218.81B and a beta (3y monthly) value of 0.96. The stock’s trailing 12-month PE ratio is 86.91, while the earnings-per-share (ttm) stands at $5.65. The company has a PEG of 2.46 and a Quick Ratio of 1.10 with the debt-to-equity ratio at 1.69. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.45% over the week and 2.46% over the month.
Analysts forecast that Netflix Inc. (NFLX) will achieve an EPS of $2.12 for the current quarter, $0.92 for the next quarter and $8.8 for 2021. The lowest estimate earnings-per-share for the quarter is $1.82 while analysts give the company a high EPS estimate of $2.3. Comparatively, EPS for the current quarter was $1.47 a year ago. Earnings per share for the fiscal year are expected to increase by 46.90%, and 42.33% over the next financial year. EPS should shrink at an annualized rate of 35.34% over the next five years, compared to 44.20% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 41 brokerage firm advisors rate Netflix Inc. (NFLX) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 21 Wall Street analysts polled rate the stock as a buy, while 11 of the 41 advise that investors “hold,” and 4 rated it as a “Sell.”
Looking at the support for the NFLX, a number of firms have released research notes about the stock. Loop Capital stated their Buy rating for the stock in a research note on July 29, 2020, with the firm’s price target at $500-$600. Wells Fargo coverage for the Netflix Inc. (NFLX) stock in a research note released on July 17, 2020 offered a Equal Weight rating with a price target of $470. UBS was of a view on July 17, 2020 that the stock is Neutral, while SunTrust gave the stock Buy rating on July 17, 2020, issuing a price target of $475- $530. Rosenblatt on their part issued Neutral rating on July 17, 2020.