Wedbush Raises Netflix Earnings Forecast

On October 15th, 2024, research analysts at Wedbush announced an increase in their earnings per share (EPS) estimates for Netflix, Inc. (NASDAQ:NFLX). They now project the streaming giant will report EPS of $6.84 for the first quarter of 2026, a slight adjustment from their previous estimate of $6.83. This positive outlook has led Wedbush to maintain an "Overweight" rating on the stock, along with a price target of $775.00. Currently, the consensus expectation for Netflix’s full-year earnings sits at $19.08 per share.

Netflix's most recent earnings report came on July 18th, 2024, where the company exceeded expectations by reporting earnings of $4.88 per share, surpassing the consensus estimate of $4.74 by $0.14. The streaming service achieved a net margin of 19.54% and a return on equity of 32.93%. They also recorded revenues of $9.56 billion for the quarter, slightly above the analysts' expectations of $9.53 billion. Compared to the same quarter last year, revenue increased by 16.8%, reflecting a positive growth trend.

In addition to Wedbush, various other research firms have provided updates on Netflix. Morgan Stanley recently increased their target price for the stock from $820.00 to $830.00, while the Goldman Sachs Group set a target at $750.00. Sanford C. Bernstein has lifted their target from $625.00 to $780.00 and issued a "market perform" rating. Loop Capital also raised their price target from $750.00 to $800.00, maintaining a "buy" rating, and Citigroup increased theirs from $660.00 to $675.00 while issuing a "neutral" rating. Overall, the stock has received ratings that indicate a mix of buy and hold sentiments, with two analysts recommending a sell rating, nine advising a hold, and twenty-six suggesting a buy. The average rating stands at "Moderate Buy," along with an average price target of $739.38.

Stock Performance Overview

As of the last trading session, shares of Netflix opened at $763.89. The stock has experienced a fifty-two week low of $392.26 and a high of $766.28, boasting a market cap of $329.24 billion. Key metrics include a price-to-earnings ratio of 53.01 and a PEG ratio of 1.49. The company has a debt-to-equity ratio of 0.55, with both a quick and current ratio of 0.95. The 50-day simple moving average stands at $696.38, and the 200-day simple moving average is $654.66.

Insider Transactions

In recent insider trading news, Netflix Chairman Reed Hastings sold 25,599 shares on August 1st, 2024, at an average price of $631.43, amounting to a total transaction value of $16,163,976.57. After this transaction, he retains ownership of just 57 shares, valued at $35,991.51. Additionally, another executive, David A. Hyman, offloaded 20,656 shares on August 6th, 2024, at an average price of $605.13, totaling $12,499,565.28. Overall, insiders sold a staggering 225,167 shares, valued at approximately $150,492,460 in the previous three months, and they currently own 1.76% of the company's stock.

Institutional Ownership Changes

Institutional investors are actively adjusting their holdings in Netflix. Massmutual Trust Co. FSB ADV raised its stake by 7.8%, now owning 1,191 shares. Meanwhile, Perpetual Ltd increased their holdings by a significant 216.8%, bringing their total to 3,054 shares. American National Bank grew its position by 103.2%, while Park Avenue Securities LLC expanded theirs by 18.2%. Notably, 80.93% of Netflix's stock is held by institutional investors, indicating strong institutional confidence in the company's future potential.

About Netflix

Netflix, Inc. is a leading entertainment service provider, delivering a vast library of TV series, documentaries, feature films, and games across multiple genres and languages. The company allows subscribers to stream content on an array of internet-connected devices, making it a pioneer in the digital entertainment landscape.

Netflix, Earnings, Forecast