CEO Hastings Reed sold 63,147 shares in Netflix, Inc. (NASDAQ:NFLX) for $5,558,947 in transaction occurred on 2018/12/24. After making this transaction, the CEO owns a direct stake of 15,226,005 shares, worth $1,750,000,000, as per the last closing price. On 2018/11/21 Hastings Reed, CEO at NFLX, dumped 78,092 shares at an average price of $266.87 per share. The selling total is valued at $1,750,000,000.
Separately, it had been reported that some other NFLX insiders also took part of the insider trading activity. CFO, Wells David B had divested 588 shares through a trade on 2018/11/19. Following this activity, the insider holds 166,869 shares. Wall Street’s most bullish Netflix, Inc. (NASDAQ:NFLX) analysts are predicting the share price to blow past $480 per share during the next 12 months. The current median share price forecast by them is $405, suggesting that the stock could increase 28.43% in that time frame. The average price target of $392.94 calls for a nearly 24.61% increase in the stock price.
Netflix, Inc. (NFLX) trading activity significantly improved as the volume at ready counter increased to 18,579,964 shares versus 12,945,545 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 16,149,824 shares. The share price rose 5.97% in recent trade and currently has a stock-market value of $137.43B. The shares finished at $315.34, after trading as low as $301.65 earlier in the session. It hit an intraday high Monday at $316.8. The stock is now 53.38% above against its bear-market low of $205.59 on January 10, 2018. It has retreated -34.21% since it’s 52-week high of $423.21 reached in June. Now the market price is up 53.35% on the year and up 17.81% YTD.
NFLX’s 50 day simple moving average (SMA 50) price is $281.53 and its 200-day simple moving average (SMA 200) price is $332.49. The company’s stock currently has a total float of 428.44M shares. Its weekly volatility is hovering around 5.05% and felt 5.82% volatility in price over a month. On the upside, the share price will test short term resistance at around $320.88. On a downside, the stock is likely to find some support, which begins at $305.73. The failure to get near-term support could push it to $296.11.
It had seen a change in price target from analysts at Barclays, who reiterated the stock at Overweight on January 07 but moved PT from $430 to $375. Analysts at SunTrust, maintained the company shares at Buy on January 02 but switched target price from $410 to $355. The stock won favor of Buckingham Research analysts who expressed their confidence in it using an upgrade from Underperform to Buy on November 05. Imperial Capital, reiterated their call for Outperform, on October 24. On the other hand, they had set new target price to $459 versus $464.
When looking at valuations, Netflix, Inc. (NFLX) has a pricey P/E of 108.96x as compared to industry average of 25.67x. Moreover, it trades for 75.95 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 27.42x price/book and 9.23x price/sales. Compared to others, Netflix, Inc. is in a different league with regards to profitability, having net margins of 8.5%. To put some perspective around this, the industry’s average net margin is 25%. NFLX’s ROE is 29.5%, which is also considerably better than the industry’s ROE of 21.15%. It’s also very liquid in the near term, with a current ratio of 1.4. The stock has a debt/capital of 1.66.
Shares of Netflix, Inc. (NFLX) have dropped -14.1% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Netflix, Inc. (NASDAQ:NFLX) has topped consensus earnings estimates in 9 quarters (75%), missed earnings in 2 quarters (16%), whereas at 1 occasion EPS met analyst expectations. NFLX last reported earnings on October 16, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.89 per share, -97.11% change on the same period last year. That was better than consensus for $0.68. Revenue for the recent quarter stood at $4 billion, up 34% on last year and below the $4 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $4.41 billion to $4.92 billion, which should be compared with $4.08 billion generated last year. EPS is seen in a range of $0.65 to $1.3, against the $0.72 reported a year ago.