Netflix, Inc. (NFLX) Offer Superior Growth And Strong Momentum

On the technicals front, Netflix, Inc. (NASDAQ:NFLX) overall has 48% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the NFLX’s short-term trajectory should know that short terms indicators for the stock averaged 40% Sell with an average daily trading volume over the past 20 days at 12429910 shares. NFLX stock has overall a 0.25% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 13779054 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 12379969 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $272.27. Below this, the next support is placed in the zone of $261.67. Till the time, the NFLX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 45.69 on daily chart, which may remain a cause for concern. If the price breaks below $261.67 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $288.35 mark may result into a pull-back move towards $293.83 level.

Netflix, Inc. (NFLX) is projected to climb by 40.68 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $480-month high price target. This represents a whopping 69.68 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $425, which represents a return potential of 50.24 percent when compared to the closing price of the stock of $282.88 on Thursday, December 06. The lowest price target for the stock is $150 — slightly more than -46.97 percent from NFLX’s current share price.

Here’s a rundown of insider trading activity for sense of Netflix, Inc. (NASDAQ:NFLX). The earliest insider trade took place on 11/21/2018. Hastings Reed parted with a total of 78.09 thousand shares of company at average share price of $266.87. The total for the sales was set at $20.84 million. After this transaction, the CEO account balance stood at 5.56 million shares. The stock grew 3.17 percent since that insider sale. On 11/19/2018, Wells David B, CFO, sold 0.59 thousand shares at a price per share of $283.79. This removed 166.87 thousand shares from the insider’s fortune and the stock saw a -2.98 percent retreat in value since the news became public. This transaction left 0 thousand shares in the CFO account. On 11/12/2018, CFO Wells David B performed a sale transaction worth $299.77 thousand. This sale at $299.77 each has eliminated 1 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -8.15 percent decrease since the transaction was reported. The insider now is left with 0 thousand shares remaining in the account. Wells David B, who performs the CFO job, sold 1 thousand shares for $311.1 thousand. The disposal occurred on 11/05/2018 was priced at $311.1 per share. The share price plunged -11.5 percent since the reporting date. Wells David B now left with a stake of 0 thousand NFLX stock worth $0 thousand after the insider selling.

NFLX shares accumulated 7.55 points or 2.74 percent on Thursday to $282.88 with a heavy trade volume of 13.037 million shares. After opening the session at $268.33, the shares went as high as $283.22 and as low as $267.14, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $124 billion and now has 440.08 million shares outstanding. Netflix, Inc. (NFLX) stock has lost -10.32 percent of market value in 21 trading days.

Analysts at Buckingham Research upped their rating on shares of Netflix, Inc. (NASDAQ:NFLX) from Underperform to Buy in their opinion released on November 05. Imperial Capital analysts again handed out a Outperform rating to NFLX stock but they lifted target price for the shares in a flash note to investors on October 24. The price target has been raised from $464 to $459. Imperial Capital, analysts launched coverage of NFLX stock with a Outperform rating, according to their flash note to investors on October 24. Analysts at Imperial Capital are sticking to their Outperform recommendation. However, on October 18, they lifted target price for these shares to $464 from $494. Analysts at Imperial Capital, made their first call for the stock with a Outperform rating, according to a research note that dated back to October 18.

NFLX stock has a trailing 3-year beta of 1.15, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.89 a share in the trailing twelve months. The stock’s value has surged 47.36 percent year to date (YTD) against a rise of 53.56 percent in 12 month’s time. The company’s shares still trade -33.16 percent away from its 1-year high of $423.21 and 56.12 percent up from 52-week low of $181.19. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Netflix, Inc. (NFLX) are trading at a P/E ratio of 92.13 times earnings reported for the past 12 months. The industry NFLX operates in has an average P/E of 25.67. Its P/E ratio went as low as 79X and as high as 407.06 over the 5-year span. Further, it is sporting a 8.36 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.62. 39.5 percent is the gross profit margin for Netflix, Inc. and operating margin sits at 11 percent. Along with this, the net profit margin is 8.5 percent.

NFLX will be declaring its Q4 financial results on January 23. Analysts are forecasting revenue to climb 28.1 percent to $4.21B in the next fiscal quarter, while earnings are seen soaring by nearly -41.46 percent to $0.24 per share. History has shown that shares in Netflix, Inc. have gone down on 18 different earnings reaction days and are predicted to add 0.12 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.89 per share, better than the $0.68, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $4B, in line with the $4B analysts expected. Earnings are estimated to increase by 235.5 percent this year, 57.53 percent next year and continue to increase by 61.8 percent annually for the next 5 years.