Oppenheimer Raises Netflix Price Target to $825.00

On October 20, 2024, Oppenheimer increased its price target for Netflix (NASDAQ:NFLX) from $775.00 to $825.00, as reported by MarketBeat Ratings. This adjustment reflects an "outperform" rating, implying a potential upside of 8.00% from the current trading price of Netflix shares.

Other analysts have also provided updates on Netflix’s stock in recent times. For instance, on July 19th, Sanford C. Bernstein elevated their target from $600.00 to $625.00, maintaining a "market perform" rating. In contrast, Benchmark stated a "sell" rating with a price objective set at $545.00 in their commentary released on October 15th. Meanwhile, Redburn Atlantic raised their estimate from $740.00 to $760.00 while affirming a "buy" rating on the same day as Bernstein's update. KeyCorp also adjusted their price target to $760.00 from $735.00, classifying the stock as "overweight." Additionally, Macquarie augmented their price objective for Netflix, bringing it up from $695.00 to $795.00, coupled with an "outperform" rating given on October 11th. The general consensus among analysts shows that two investment firms rate the stock as a sell, nine as a hold, and twenty-five as a buy. MarketBeat.com data reveals that Netflix holds an average rating of "Moderate Buy," with an average price target of $747.70.

Netflix Performance Overview

On the day of the announcement, Netflix shares opened at $763.89, demonstrating an increase of 11.1%. The company's 50-day moving average stands at $696.38, while the 200-day moving average is $654.94. Financial ratios indicate a current ratio of 0.95, a quick ratio of 0.95, and a debt-to-equity ratio of 0.55. Netflix, which boasts a market cap of $329.24 billion, has a price-earnings (P/E) ratio of 53.01 and a P/E to growth (P/E/G) ratio of 1.49, with a beta factor of 1.26. Over the previous year, the stock reached a twelve-month low of $392.26 and a high of $766.28.

Latest Earnings Report

On July 18th, Netflix disclosed its earnings results, reporting $4.88 in earnings per share (EPS), exceeding analyst expectations of $4.74 by $0.14. The company achieved a return on equity of 32.93% and a net margin of 19.54%. Revenue for the quarter amounted to $9.56 billion, surpassing the $9.53 billion consensus estimate, and marking a 16.8% increase year-over-year. Analysts predict that Netflix will realize an EPS of 19.08 for the current fiscal year.

Insider Trading Activity

In related developments, insider David A. Hyman executed a sale of 20,656 shares on August 6th, with an average sale price of $605.13 valued at approximately $12.5 million. Post-transaction, Hyman maintains an ownership of 31,610 shares, valued around $19.1 million. On August 20th, he sold another 13,791 shares at an average price of $700.00, resulting in a total sale value of about $9.65 million, leading to his remaining shares valued at about $22.1 million. This series of transactions has led to a total insider sell-off of approximately 225,167 shares, valued at $150.5 million in the past three months, with insiders holding about 1.76% of the stock.

Institutional Investors' Movements

Recently, various hedge funds made changes to their positions in Netflix. Vanguard Group Inc. raised its stake by 0.4%, owning 36,587,911 shares valued at $22.22 billion. Jennison Associates LLC increased their holdings by 17.0%, reaching 6,381,464 shares worth approximately $3.88 billion. Baillie Gifford & Co. expanded its stake by 2.3%, with 4,762,069 shares valued at $3.21 billion. Legal & General Group Plc and Bank of New York Mellon Corp also raised their stakes in Netflix, owning 3,449,114 shares and 3,281,306 shares respectively. In total, institutional investors and hedge funds own approximately 80.93% of Netflix's stock.

About Netflix

Netflix, Inc. is a leading entertainment service provider, delivering a wide variety of TV series, documentaries, feature films, and games across multiple genres and languages. The company facilitates streaming content through various internet-connected devices, including televisions, digital video players, and mobile devices.

Oppenheimer, Netflix, Price Target