The stock of Netflix Inc. (NASDAQ:NFLX) increased by $6.12 on Monday to finish at $427.78, up 1.45 percent. The last five days have seen an average of 4,195,020 shares of common stock traded. 29 times new highs were reached in the current year, with a gain of $132.90. The average number of shares traded over the last 20 days was 8,119,450, while the average volume over the last 50 days totaled 7,140,782.
NFLX stock dropped -3.20% since last month. On 07/27/23, the company’s shares reached a one-month low of $411.88. The stock touched a high of $485.00 on 07/19/23, after rallying from a low of $211.73 in 52 weeks. The price of NFLX stock has risen by 45.07% or $132.90 this year, reaching a new high 29 times. Still, the stock price is down -11.80% from the 52-week high.
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Insider Transactions
NFLX stock investors should be aware that Netflix Inc. (NFLX) stock had its last reported insider trading activity 7 days ago on Aug 08. On Aug 08, Director BARTON RICHARD N sold 500 shares at $440.36 each. This transaction resulted in the insider making $220,180. On Aug 04, SARANDOS THEODORE A sold 55,386 shares at a price of US$431.10. After the transaction, the insider now owns 0 shares. Executive Chairman HASTINGS REED had earlier sold 20,188 shares on Aug 01 for $440.16 a share. The transaction was completed for $8,886,051.
Valuation Metrics
Netflix Inc. (NFLX) has a trailing price-to-earnings (P/E) ratio of 49.81. Beta for the stock is 1.29. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 6.02, the price-to-book (PB) ratio of 8.32, and the price-to-cash flow ratio of 45.38.
Financial Health
For the three months ended June 29, Netflix Inc.’s quick ratio was 1.30, while its current ratio was 1.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.62, and the total debt to equity ratio is 0.63. As far as profitability goes, gross margin for the trailing twelve months is 38.80% percent. Netflix Inc.’s EBITDA margin for the year ended June 29 was 63.25%, whereas its operating margin stood at 17.50% for the same period. Based on annual data, it had gross profit of $12.45 billion and revenue of $31.62 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. NFLX’s return on assets (ROA) during the last 12 months has been 8.60%. There was a 12.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 19.80%.
Earnings Surprise
According to Netflix Inc.’s quarterly financial report for the quarter that ended June 29, it had $14.07 billion in total debt versus $914.2 million in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $8.19 billion, while revenues rose by 2.65% to $8.16 billion. It was predicted that Netflix Inc.’s quarterly earnings would be $3.29, but it ended up being $2.86, beating the consensus by 15.00%. EBITDA was $5.33 billion for the quarter. At the end of Netflix Inc.’s most recent quarter ended June 29, its liabilities totaled 27.99 billion, while its total debt was $16.99 billion. Equity owned by shareholders amounts to $443.15 million.
Technical Picture
Here’s a quick look at Netflix Inc.’s (NFLX) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 46.01%, suggesting the stock is Neutral, with a 22.96% historical volatility rate.
The stochastic %K and %D were 43.73% and 49.24% respectively, while the average true range (ATR) was 12.07. Based on the 14-day stochastic reading of 47.65%, the RSI (14) reading is 48.06%. On the 9-day MACD Oscillator, the stock is at -4.60, and the 14-day reading is at -3.45.
Analyst Ratings
In its most recent analyst report, Robert W. Baird raised its rating on Netflix Inc. (NASDAQ: NFLX) to an Outperform. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Netflix Inc. (NFLX) an Overweight rating. NFLX is a stock that is recommended for selling by 2 brokerage firms, while 20 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 21 others recommend it as a buy.
What is NFLX’s price target for the next 12 months?
The current consensus forecast for the stock is between $293.00 and $600.00, with a median target price of $477.00. In analyzing these forecasts, the average price target given by analysts for Netflix Inc. (NFLX) is $456.28.
