Netflix Inc. (NFLX) is looking forward to a strong quarter

Netflix Inc. (NASDAQ: NFLX) stock jumped 2.49% on Wednesday to $364.85 against a previous-day closing price of $355.99. With 7.94 million shares changed hands, the volume of the stock remained heavier than its average volume of 6.55 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $367.14 whereas the lowest price it dropped to was $356.62. The 52-week range on NFLX shows that it touched its highest point at $379.43 and its lowest point at $164.28 during that stretch. It currently has a 1-year price target of $361.71. Beta for the stock currently stands at 1.25.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of NFLX was up-trending over the past week, with a rise of 7.32%, but this was up by 13.11% over a month. Three-month performance surged to 12.73% while six-month performance rose 28.00%. The stock gained 94.65% in the past year, while it has gained 23.73% so far this year. A look at the trailing 12-month EPS for NFLX yields 8.50 with Next year EPS estimates of 14.25. For the next quarter, that number is 2.82. This implies an EPS growth rate of -14.40% for this year and 28.65% for next year. EPS is expected to grow by 21.72% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 44.90%.

Float and Shares Shorts:

At present, 445.24 million NFLX shares are outstanding with a float of 438.60 million shares on hand for trading. On Apr 27, 2023, short shares totaled 8.4 million, which was 1.89% higher than short shares on Mar 30, 2023. In addition to Mr. Wilmot Reed Hastings Jr. as the firm’s Co-Founder & Exec. Chairman, Mr. Theodore A. Sarandos serves as its Co-CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 83.51% of NFLX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.76% of NFLX, in contrast to 34.18% held by mutual funds. Shares owned by individuals account for 3.98%. As the largest shareholder in NFLX with 7.66% of the stake, The Vanguard Group, Inc. holds 34,052,475 shares worth 34,052,475. A second-largest stockholder of NFLX, Fidelity Management & Research Co, holds 21,496,235 shares, controlling over 4.84% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in NFLX, holding 18,894,041 shares or 4.25% stake. With a 3.11% stake in NFLX, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 13,836,920 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 2.75% of NFLX stock, is the second-largest Mutual Fund holder. It holds 12,206,274 shares valued at 4.03 billion. Vanguard 500 Index Fund holds 2.33% of the stake in NFLX, owning 10,353,084 shares worth 3.42 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, NFLX reported revenue of $7.97B and operating income of $1.58B. The EBITDA in the recently reported quarter was $5.14B and diluted EPS was $3.20.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NFLX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With NFLX analysts setting a high price target of $450.00 and a low target of $215.00, the average target price over the next 12 months is $366.37. Based on these targets, NFLX could surge 23.34% to reach the target high and fall by -41.07% to reach the target low. Reaching the average price target will result in a growth of 0.42% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded NFLX stock several times over the past three months with 1 Buys and 12 Sells. In these transactions, 26,278 shares were bought while 26,278 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 17 over the past year. The total number of shares bought during that period was 120,062 while 496,005 shares were sold.

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