Shares of Netflix, Inc. (NASDAQ:NFLX) are trading up quite significantly today. This comes after Trefis increased their price estimate for shares of common stock. This is in response to Netflix’s international expansion policy which sees the streaming video service coming to 130 new countries. These 130 new countries represent huge potential in generating additonal revenue in the near and longterm future.
“The subscriber growth in Netflix’s International segment has been very robust so far, with the subscriber base increasing from 1.9 million customers in 2011 to over 30 million by the end of 2015,” exlained Trefis. “Netflix has been aggressively expanding in international territories for the last year and a half. The company launched operations in Western Europe and ANZ (Australia & New Zealand) in September 2014 and March 2015 respectively, giving it access to a combined potential subscriber base of about 74 million broadband households.”
$112 represents an increases of approximately 30% over the stock’s current price. The stock is up 3.40% or $2.83 following the news, hitting $86.15 per share. About 7.23 million shares traded hands. NFLX has declined 11.90% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 2.42%.
From a total of 30 analysts covering Netflix (NASDAQ:NFLX) stock, 22 rate it a “Buy”, 1 a “Sell”, and 7 a “Hold”. This means that 73% of the ratings are positive. The highest target price is $175 while the lowest target price is $45.0. The mean of all analyst targets is $126.76 which is 47.14% above today’s ($86.15) stock price. Netflix was the topic of 48 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Piper Jaffray upgraded shares on February 2 to a “Overweight” rating. Drexel Hamilton initiated shares with a”Buy” rating and a $150.0 target share price in their report from a January 14. Wedbush maintained NFLX stock in a recent report from January 20 with a “Underperform” rating. Robert W. Baird downgraded the rating on January 4. Robert W. Baird has a “Neutral” rating and a $115 price target on shares. Finally, Pivotal Research maintained the stock with a “Buy” rating in a report they issued on a January 20.
The institutional sentiment increased to 1.54 in Q2 2015. It’s up 0.29, from 1.25 in 2015Q2. The ratio increased, 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 11 selling transactions for a total of $32.60 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 $36.88 billion. The Firm has over 57 million streaming members in over 50 countries. It has 306.81 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.