Netflix, Inc. (NFLX) Exploring Possible Content Rating Changes

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While a 5-star system for rating multimedia content is common now-a-days, Netflix, Inc. (NASDAQ:NFLX) seems to feel that something needs to be changed. According to a Business Insider interview with Netflix, Inc. (NASDAQ:NFLX) CPO Neil Hunt, a change seems likely.

Hunt believes that a typical Netflix user subconsciously tries to emulate a movie critic, judging a film or a television shows from an artistic perspective, rather than that of their personal enjoyment. The show or film may have been extremely entertaining, but if there is no major artistic breakthrough, or complicated, yet meaningful plot, a user may provide a less than optimal review. While Hunt has not given any major clues on how a future Netflix, Inc. (NASDAQ:NFLX) rating system may function, he did tell Business Insider that he’s considering more general signals such as ‘like/dislike’ and even some sort of algorithm that could provide users with a “percent match.”

The stock is up 2.95% or $3.29 following the news, hitting $114.68 per share. About 17.84 million shares traded hands or up 12.77% from the average. NFLX has risen 23.14% since June 5, 2015 and is currently uptrending. It has outperformed the S&P500 by 27.83%.

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 15.26% above today’s ($114.68) 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 insider 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 $5.29M. 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 $48.77 billion. The Firm has over 57 million streaming members in over 50 countries. It has 305.8 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.

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