While Netflix, Inc. (NASDAQ:NFLX) has been garnering a ton of attention at the Consumer Electronics Show in Las Vegas this week after announcing their international expansion, such a move certainly complicates things for the company and their executives.
While the governments of many nations will allow pretty much any content to be streamed, certain nations, such as China are much more stringent on what they allow their people to watched. For instance anything portraying China as a developing nation or anything that goes against the Communist government’s party line could cause problems for Netflix, Inc. (NASDAQ:NFLX) who realizes the importants of the Chinese market.
In an effort to follow Apple’s path to boatloads of Chinese profits, instead of Google’s path, which led to the banning of several of their services in the country, Netflix, Inc. (NASDAQ:NFLX) CEO Reed Hastings has said that the company will consider removing offensive material found within their original shows. He went on to explain that it will be a learning experience and they will make decisions, not immediately, but as time goes by. The stock is down 2.49% or $2.85 following the news, hitting $111.71 per share. Approximately 15.37M shares traded hands. NFLX shares have risen 28.22% since June 4, 2015 and are currently uptrending. It has outperformed the S&P500 by 32.91%.
From a total of 26 analysts covering Netflix (NASDAQ:NFLX) stock, 20 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 77% 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 $132.18 which is 18.32% above today’s ($111.71) stock price. Netflix was the topic of 37 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Robert W. Baird downgraded shares on January 4 to a “Neutral” rating. JP Morgan maintained shares with a”Overweight” rating and a $137 target share price in their report from an October 15. FBR Capital maintained NFLX stock in a recent report from October 15 with a “Outperform” rating. BMO Capital Markets initiated the rating on October 9. BMO Capital Markets has a “Market Perform” rating and a $115 price target on shares. Finally, Credit Suisse maintained the stock with a “Neutral” 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 improved, 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 $8.68 million. Battle A George sold 49,000 shares worth $5.29 million. 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 $48.28 billion. The Firm has over 57 million streaming members in over 50 countries. It has 297.88 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.