Netflix, Inc. (NFLX) Shares Plunge on Possible Apple (AAPL) Acquisition of Time Warner


After a stellar 2015, shares of Netflix, Inc. (NASDAQ:NFLX) continue to have a volatile start to the new year. The stock, which has bounced around considerably over the first two weeks of trading in 2016 is down considerably this morning while the Dow treads water.

Shares of Netflix, Inc. (NASDAQ:NFLX) have tumbled over the last five weeks, dropping from a high of $133.27 at the start of December to around $112 today. While much of this drop has been in unison with the rest of the market, shareholders may be getting a bit weary of the comapny’s high PE ratio which is close to 300. At the same time, today’s dip may have to do with recent rumors of Apple acquiring Time Warning in order to boost their forthcoming streaming TV offering. It would be interesting to see how Netflix, Inc. (NASDAQ:NFLX) shares react should Apple actually go through with such a deal.

The stock is down 3.80% or $4.43 following the news, hitting $112.15 per share. Approximately 1.77M shares traded hands. NFLX shares have risen 26.10% since June 9, 2015 and are currently uptrending. It has outperformed the S&P500 by 33.58%.

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 $131.76 which is 17.49% above today’s ($112.15) stock price. Netflix was the topic of 38 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Pivotal Research maintained shares on January 8 with a “Buy” rating. Credit Suisse maintained shares with a”Neutral” rating and a $124 target share price in their report from an October 15. Topeka Capital Markets maintained NFLX stock in a recent report from November 16 with a “Buy” rating. JP Morgan maintained the rating on October 15. JP Morgan has a “Overweight” rating and a $137 price target on shares. Finally, Oppenheimer maintained the stock with a “Outperform” 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 selling transactions 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 $47.93 billion. The Firm has over 57 million streaming members in over 50 countries. It has 299.06 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.