Netflix Inc. [NFLX] moved down -0.77: Why It’s Important

Netflix Inc. [NASDAQ: NFLX] traded at a low on 11/16/20, posting a -0.77 loss after which it closed the day’ session at $479.10. The company report on October 21, 2020 that Netflix Releases Third-Quarter 2020 Financial Results.

Netflix, Inc. (NASDAQ: NFLX) has released its third-quarter 2020 financial results by posting them to its website. Please visit the Netflix investor relations website at http://netflixinvestor.com to view the Q3’20 financial results and letter to shareholders.

A video interview with Netflix co-CEO Reed Hastings, co-CEO & Chief Content Officer Ted Sarandos, Chief Financial Officer Spence Neumann, COO & Chief Product Officer Greg Peters and VP, IR & Corporate Development Spencer Wang will be available at 3:00 p.m. Pacific Time at youtube.com/netflixir. The interview will be conducted by Kannan Venkateshwar, Barclays Capital. Questions that investors would like to see asked should be sent to kannan.venkateshwar@barclayscapital.com.

The results of the trading session contributed to over 3921938 shares changing hands. Over the past one week, the price volatility of Netflix Inc. stands at 2.96% while the volatility over the past one month is 3.36%.

The market cap for NFLX stock reached $213.39 billion, with 441.53 million shares outstanding and 434.54 million shares in the current float. Compared to the average trading volume of 6.13M shares, NFLX reached a trading volume of 3921938 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Netflix Inc. [NFLX]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NFLX shares is $547.53 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NFLX stock is a recommendation set at 2.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Wells Fargo have made an estimate for Netflix Inc. shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on October 21, 2020. While these analysts kept the previous recommendation, Wedbush raised their target price from $220 to $235. The new note on the price target was released on October 21, 2020, representing the official price target for Netflix Inc. stock. Previously, the target price had yet another drop from $420 to $380, while The Benchmark Company kept a Sell rating on NFLX stock. On October 21, 2020, analysts increased their price target for NFLX shares from 610 to 630.

The Average True Range (ATR) for Netflix Inc. is set at 18.35, with the Price to Sales ratio for NFLX stock in the period of the last 12 months amounting to 8.96. The Price to Book ratio for the last quarter was 20.47, with the Price to Cash per share for the same quarter was set at 18.84. Price to Free Cash Flow for NFLX in the course of the last twelve months was 330.58 with Quick ratio for the last quarter at 1.20.

How has NFLX stock performed recently?

Netflix Inc. [NFLX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.83. With this latest performance, NFLX shares dropped by -9.74% in over the last four-week period, additionally plugging by 6.22% over the last 6 months – not to mention a rise of 62.39% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NFLX stock in for the last two-week period is set at 45.30, with the RSI for the last a single of trading hit 42.09, and the three-weeks RSI is set at 45.38 for Netflix Inc. [NFLX]. The present Moving Average for the last 50 days of trading for this stock 499.51, while it was recorded at 483.94 for the last single week of trading, and 449.24 for the last 200 days.

Netflix Inc. [NFLX]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Netflix Inc. [NFLX] shares currently have an operating margin of +12.92 and a Gross Margin at +38.28. Netflix Inc.’s Net Margin is presently recorded at +9.26.

Return on Total Capital for NFLX is now 13.16, given the latest momentum, and Return on Invested Capital for the company is 9.48. Return on Equity for this stock inclined to 29.12, with Return on Assets sitting at 6.23. When it comes to the capital structure of this company, Netflix Inc. [NFLX] has a Total Debt to Total Equity ratio set at 215.93. Additionally, NFLX Total Debt to Total Capital is recorded at 68.35, with Total Debt to Total Assets ending up at 48.19. Long-Term Debt to Equity for the company is recorded at 213.42, with the Long-Term Debt to Total Capital now at 67.55.

Reflecting on the efficiency of the workforce at the company, Netflix Inc. [NFLX] managed to generate an average of $217,083 per employee. Receivables Turnover for the company is 41.17 with a Total Asset Turnover recorded at a value of 0.67.Netflix Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.20.

Earnings analysis for Netflix Inc. [NFLX]

With the latest financial reports released by the company, Netflix Inc. posted 1.3/share EPS, while the average EPS was predicted by analysts to be reported at 0.53/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 145.30%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NFLX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Netflix Inc. go to 40.95%.

Insider trade positions for Netflix Inc. [NFLX]

There are presently around $170,452 million, or 82.70% of NFLX stock, in the hands of institutional investors. The top three institutional holders of NFLX stocks are: VANGUARD GROUP INC with ownership of 33,583,091, which is approximately -1.23% of the company’s market cap and around 1.55% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 30,882,260 shares of the stock with an approximate value of $14.8 billion in NFLX stocks shares; and BLACKROCK INC., currently with $13.9 billion in NFLX stock with ownership of nearly -0.511% of the company’s market capitalization.

Positions in Netflix Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 871 institutional holders increased their position in Netflix Inc. [NASDAQ:NFLX] by around 19,302,549 shares. Additionally, 705 investors decreased positions by around 23,376,367 shares, while 230 investors held positions by with 313,095,580 shares. The mentioned changes placed institutional holdings at 355,774,496 shares, according to the latest SEC report filing. NFLX stock had 183 new institutional investments in for a total of 6,806,242 shares, while 118 institutional investors sold positions of 3,107,083 shares during the same period.

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