Netflix Inc. [NASDAQ: NFLX] price surged by 1.00 percent to reach at $5.1. The company report on March 5, 2021 that Content is King as the Digital Media Streaming Market Continues to Grow.
FN Media Group Presents Microsmallcap.com Market Commentary.
The home entertainment industry’s transition to digital streaming looks to be nearly complete, but the digital content streaming industry still has a huge amount of room for growth in the coming years. Nearly every home in the developed world now has a device for streaming content, be it a purpose built device like an Amazon Fire TV stick or ROKU TV, a game console, or a smart TV, and the global streaming media device market is set to reach US$295.50 billion by 2027. This is fueling an ever growing demand for digital media content that is being filled by companies like BBTV (OTCQX:BBTVF) (TSX:BBTV), Netflix Inc (NASDAQ:NFLX), Apple Inc (NASDAQ:APPL), Amazon.com, Inc. (NASDAQ:AMZN), and Walt Disney Co (NYSE:DIS).
A sum of 5069973 shares traded at recent session while its average daily volume was at 4.70M shares. Netflix Inc. shares reached a high of $517.76 and dropped to a low of $498.7901 until finishing in the latest session at $516.39.
The one-year NFLX stock forecast points to a potential upside of 16.55. The average equity rating for NFLX stock is currently 2.10, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on 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 $618.79 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 2.10. 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.
DZ Bank have made an estimate for Netflix Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 21, 2021. While these analysts kept the previous recommendation, Wells Fargo raised their target price from $510 to $700. The new note on the price target was released on January 20, 2021, representing the official price target for Netflix Inc. stock. Previously, the target price had yet another raise from $540 to $650, while UBS kept a Buy rating on NFLX stock. On January 20, 2021, analysts increased their price target for NFLX shares from 412 to 485.
The Average True Range (ATR) for Netflix Inc. is set at 17.81, with the Price to Sales ratio for NFLX stock in the period of the last 12 months amounting to 9.06. The Price to Book ratio for the last quarter was 20.64, with the Price to Cash per share for the same quarter was set at 18.71. Price to Free Cash Flow for NFLX in the course of the last twelve months was 117.38 with Quick ratio for the last quarter at 1.30.
NFLX Stock Performance Analysis:
Netflix Inc. [NFLX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -4.17. With this latest performance, NFLX shares dropped by -4.27% in over the last four-week period, additionally sinking by -6.59% over the last 6 months – not to mention a rise of 38.52% 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 40.67, with the RSI for the last a single of trading hit 35.46, and the three-weeks RSI is set at 44.25 for Netflix Inc. [NFLX]. The present Moving Average for the last 50 days of trading for this stock 535.15, while it was recorded at 529.37 for the last single week of trading, and 500.12 for the last 200 days.
Insight into Netflix Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Netflix Inc. [NFLX] shares currently have an operating margin of +18.34 and a Gross Margin at +38.89. Netflix Inc.’s Net Margin is presently recorded at +11.05.
Return on Total Capital for NFLX is now 17.13, given the latest momentum, and Return on Invested Capital for the company is 10.50. Return on Equity for this stock inclined to 29.62, with Return on Assets sitting at 7.54. When it comes to the capital structure of this company, Netflix Inc. [NFLX] has a Total Debt to Total Equity ratio set at 167.29. Additionally, NFLX Total Debt to Total Capital is recorded at 62.59, with Total Debt to Total Assets ending up at 47.12. Long-Term Debt to Equity for the company is recorded at 160.45, with the Long-Term Debt to Total Capital now at 60.03.
Reflecting on the efficiency of the workforce at the company, Netflix Inc. [NFLX] managed to generate an average of $293,765 per employee. Receivables Turnover for the company is 21.44 with a Total Asset Turnover recorded at a value of 0.68.Netflix Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.
NFLX Stock EPS
With the latest financial reports released by the company, Netflix Inc. posted 1.57/share EPS, while the average EPS was predicted by analysts to be reported at 1.65/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -4.80%. 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 44.43%.
Netflix Inc. [NFLX] Insider Position Details
There are presently around $184,458 million, or 82.20% of NFLX stock, in the hands of institutional investors. The top three institutional holders of NFLX stocks are: VANGUARD GROUP INC with ownership of 33,200,737, which is approximately -1.139% of the company’s market cap and around 1.55% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 30,232,937 shares of the stock with an approximate value of $15.61 billion in NFLX stocks shares; and BLACKROCK INC., currently with $14.84 billion in NFLX stock with ownership of nearly -1.001% of the company’s market capitalization.
Positions in Netflix Inc. stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 1,016 institutional holders increased their position in Netflix Inc. [NASDAQ:NFLX] by around 17,842,359 shares. Additionally, 685 investors decreased positions by around 16,033,694 shares, while 265 investors held positions by with 323,331,670 shares. The mentioned changes placed institutional holdings at 357,207,723 shares, according to the latest SEC report filing. NFLX stock had 290 new institutional investments in for a total of 3,206,903 shares, while 99 institutional investors sold positions of 1,603,361 shares during the same period.