Shares of Netflix, Inc. (NASDAQ:NFLX) are having a tough time today after a general market decline, along with a downgrade and most importantly a recent survey. According to a survey administrered by R.W. Baird’s William Power of 3,000 United States residents, fourth quarter subscriptions for Netflix, Inc. (NASDAQ:NFLX) will likely disappoint shareholders.
“In our Q4 U.S. survey, 46% of respondents stated that they were Netflix streaming subscribers vs. 47% in Q3 and 35% a year ago,” explained R.W. Baird’s William Power. “This appears to point to more flattish Q4’15 U.S. subscriber progress, and, if accurate, potentially raises some questions around the U.S. subscriber growth trajectory. We would also note that Netflix’s $1 price increase went into effect for new subscribers on October 8, which could have had a greater impact than we originally anticipated.”
Shares of Netflix, Inc. (NASDAQ:NFLX) are already trading down substantially from their $130+ highs seen in December, and the company faces considerable headwinds via YouTube and perhaps Apple, who would like to compete in the on-demand video space. The stock has fallen 7.59% or $8.68 following this negative news, hitting $105.7 per share. Approximately 4.89M shares traded hands. NFLX shares have declined 81.67% since May 29, 2015 and are currently downtrending. It has underperformed the S&P500 by 78.66%.
From a total of 25 analysts covering Netflix (NASDAQ:NFLX) stock, 20 rate it a “Buy”, 0 a “Sell”, and 5 a “Hold”. This means that 80% of the ratings are positive. The highest target price is $175 while the lowest target price is $72. The mean of all analyst targets is $132.72 which is 25.56% above today’s ($105.7) stock price. Netflix was the topic of 36 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Topeka Capital Markets maintained shares on November 16 with a “Buy” rating. BMO Capital Markets initiated shares with a”Market Perform” rating and a $115 target share price in their report from an October 9. Oppenheimer maintained NFLX stock in a recent report from October 15 with a “Outperform” rating. Vetr upgraded the rating on September 1. Vetr has a “Hold” rating and a $122.24 price target on shares. Finally, JP Morgan maintained the stock with a “Overweight” rating in a report they issued on an October 15.
The institutional sentiment increased to 1.54 in Q2 2015. It’s up 0.29, from 1.25 in 2015Q2. The ratio is positive, as 58 funds sold all their Netflix, Inc. shares they owned while 194 reduced their positions. 149 funds bought stakes while 238 increased their total positions. Institutions now own 639.63 million shares which is 1081.93% more than the previous share count of 54.12 million in 2015Q2.
Srs Investment Management Llc holds 40.42% of its total portfolio in Netflix, Inc., equating to 11.81 million shares. Technology Crossover Management Vii Ltd. owns 5.04 million shares representing 34.23% of their total US portfolio. Moreover, Ctc Llc has 33.44% of their total portfolio invested in the company, equating to 645,718 shares. The Pennsylvania-based Barton Investment Management has a total of 29.76% of their portfolio invested in the stock. Tiger Global Management Llc, a New York-based fund reported 18.00 million shares owned.
Since February 25, 2015, the stock had 0 insider buys, and 21 sales for a total of $85.52 million in net activity. Barton Richard N sold 2,800 shares worth $281,260. Hastings Reed sold 86,037 shares worth $8.68M. Battle A George sold 49,000 shares worth $5.29M. Cranz Tawni sold 1,512 shares worth $190,179. The insider Peters Gregory K sold 6,545 shares worth $841,491.
Netflix, Inc. is a provider of Internet television network. The company has a market cap of $48.33 billion. The Firm has over 57 million streaming members in over 50 countries. It has 281.85 P/E ratio. The Company’s members can watch more than two billion hours of television shows and movies per month, including original series, documentaries and feature films on Internet-connected screen.