Wedbush Optimistic About Netflix's FY2024 Earnings

On October 18, 2024, Wedbush analysts announced an increase in their earnings projections for Netflix, Inc. (NASDAQ:NFLX). The analyst, A. Reese, now estimates that Netflix will earn $19.87 per share in FY2024, a rise from the previous forecast of $19.01. Wedbush has rated Netflix stock as "Overweight" and set a price target of $775.00. In comparison, the consensus forecast for Netflix's current full-year earnings stands at $19.08 per share.

Additionally, Wedbush provided earnings estimates for future quarters, forecasting $5.88 for Q1 2025, $5.90 for Q2 2025, and $6.54 for Q3 2025. Looking further ahead, they predict $7.04 for Q1 2026, $6.96 for Q2 2026, $7.57 for Q3 2026, and a total of $27.84 for FY2026.

Analyst Ratings and Price Targets

Netflix has garnered attention from various analysts recently. Pivotal Research raised their price target to $925.00 with a "buy" rating, while KeyCorp increased their target from $760.00 to $785.00, also assigning an "overweight" rating. Macquarie reaffirmed an "outperform" rating with a price target of $795.00. On the other hand, China Renaissance initiated coverage with a “hold” rating, setting a target at $680.00. Redburn Atlantic also adjusted their price target from $740.00 to $760.00 and maintained a “buy” rating. The stock overall has received mixed ratings, including two sell ratings, nine hold ratings, and twenty-five buy ratings, which yields a consensus rating of "Moderate Buy" and an average price target of $747.70 according to MarketBeat.com.

Current Stock Performance

The stock opened at $772.07 on Monday, reflecting a 1.1% increase. The company's key financial ratios show a debt-to-equity ratio of 0.55 and current and quick ratios both at 0.95. The moving averages indicate a 50-day average of $699.16 and a 200-day average of $656.21. In the past twelve months, Netflix recorded a low of $395.62 and a high of $773.00, with a total market capitalization of $332.76 billion. It has a price-to-earnings (P/E) ratio of 53.58 and a price-to-earnings growth (PEG) ratio of 1.49.

Insider Trading Activity

In other developments, insider David A. Hyman sold a significant number of Netflix shares in recent months. On August 6, Hyman sold 20,656 shares at an average price of $605.13, totaling approximately $12.5 million. Following this transaction, he holds 31,610 shares valued at about $19.1 million. Additionally, on August 20, he sold another 13,791 shares at $700.00, bringing in approximately $9.7 million. Throughout the last ninety days, Netflix insiders have sold a total of 229,711 shares valued at $153.9 million, indicating that insiders own around 1.76% of the total shares.

Institutional Investors' Involvement

Recently, various hedge funds have adjusted their positions concerning Netflix shares. Denver PWM LLC established a new position valued at approximately $25,000 in the second quarter. Valued Wealth Advisors LLC increased their holdings by 80% in Q1 2024, now owning 45 shares valued at $27,000. Proffitt & Goodson Inc. expanded their stake by an impressive 380%, totaling 48 shares worth $32,000. Meanwhile, AlphaMark Advisors LLC boosted their holdings by 642.9%, equating to 52 shares worth $35,000. Currently, institutional investors and hedge funds own roughly 80.93% of Netflix's stock.

About Netflix

Netflix, Inc. is a leading entertainment service provider, offering a wide range of TV shows, documentaries, feature films, and games across various genres and languages. The service allows members to stream content on numerous internet-connected devices, including TVs, digital video players, set-top boxes, and mobile phones.

Netflix, Earnings, Wedbush