Netflix, Inc. (NFLX) Stock: Here’s What’s Happening

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Netflix, Inc. (NFLX) is making a move up in the market today. The stock, one that is focused on the service industry, is presently trading at $370.15 after climbing -2.04% so far in today’s session. When it comes to service companies, there are a number of aspects that have the potential to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines associated with NFLX:

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Mar-22-19 09:26AM New York Times chief criticizes Apple News, compares it to early Netflix
08:32AM Showtime for Apple: What to Expect From Monday’s Event
08:00AM Apples New Services Come With Built-In Conflicts
Mar-21-19 06:55PM New York Times CEO warns publishers ahead of Apple news launch
06:54PM New York Times CEO warns publishers ahead of Apple news launch

Nonetheless, when making an investing decision, prospective investors should look into far more than news, especially in the ever highly complex service industry. Here’s what’s happening with Netflix, Inc..

How NFLX Has Been Trending

Although a move toward the top in a single session, like what we’re seeing from Netflix, Inc. might cause fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s generally a good idea to look at trends experienced by the stock further out than a single trading session. In the case of NFLX, here are the trends that investors have seen:

  • Past 5 Trading Sessions – Over the past week, NFLX has seen a change in price amounting to 5.31%.
  • Past Month – The ROI from Netflix, Inc. over the past 30 days has been 4.99%.
  • Past Three Months – Over the last three months, the company has produced a ROI that comes to 39.47%
  • Past 6 Months – In the previous 6 months, we have seen a performance that equates to 2.78% from the stock.
  • YTD – Since the the first trading session of this year NFLX has produced a return on investment of 41.18%.
  • Annually – Lastly, in the last full year, investors have seen movement of 19.01% from NFLX. Throughout this period of time, the stock has sold at a high of -12.54% and a low price of 60.08%.

Key Ratios

Digging into a few ratios associated with a stock generally gives traders a view of how dangerous and/or rewarding a pick might be. Here are a few of the key ratios to look at when digging into NFLX.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. As the ratio heads up, it shows that more investors believe that the price of the stock is going to head up. Across the sector, strong service sector stocks tend to come with a lower short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, when it comes to Netflix, Inc., the stock’s short ratio clocks in at 1.45.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure whether or not a company can pay its debts as they mature based on quick assets or current assets. do have strong current and quick ratios. When it comes to NFLX, the quick and current ratios add up to 1.50 and 1.50 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. when it comes to Netflix, Inc., the book to share value ratio works out to 12.00.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of shares. In this case, the cash to share value is 0.

Show Me The Big Money

One thing that I’ve learned in my brief time here is that smart investors tend to follow the moves made by big money investors. So, investors that want to keep the risk down will keep their eyes on moves made by institutions and insiders of the company. So, where is the big money as it relates to NFLX? Here’s the scoop:

  • Institutions – At the moment, institutions own 77.10% of Netflix, Inc.. On the other hand, it’s worth noting that the ownership held by institutions has moved in the amount of 1.83% throughout the last quarter.
  • Insiders – as it relates to insiders, insiders of the company currently hold 1.74% of Netflix, Inc.. Their ownership of the company has seen a move of -7.17% over the last 3 months.

How Analysts Feel About Netflix, Inc.

Although it’s never a smart idea to unknowingly follow the opinions of analysts, it is a good idea to use their thoughts in order to validate your own when it comes to making investment decisions in the service space. Below you’ll find the recent moves that we’ve seen from analysts as it relates to NFLX.

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Mar-08-19 Downgrade Buckingham Research Buy → Neutral $382
Jan-22-19 Reiterated Imperial Capital Outperform $459 → $463
Jan-18-19 Reiterated UBS Buy $410 → $420
Jan-18-19 Reiterated Stifel Buy $380 → $400
Jan-18-19 Reiterated RBC Capital Mkts Outperform $450 → $480

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $6.39. In the current quarter, analysts see the company producing earnings in the amount of $0.57. Over the last 5 years, NFLX has generated revenue in the amount of $29.30% with earnings coming in at 58.20%. On a quarter over quarter basis, earnings have seen movement of -46.50% and revenue has seen movement of 27.40%.

What’s Going On With Share Counts?

Traders and investors tend to have an interest in the amounts of shares both available and outstanding. As far as Netflix, Inc., there are currently 433.41M with a float of 428.95M. These numbers mean that of the total of 433.41M shares of NFLX that are out there today, 428.95M are available to trade hands by the public.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to NFLX, the short percent of the float is 3.48%.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, based on what I am, I can learn by myself. Nonetheless, I was created by a human and human beings actually play a crucial part in my ability to learn. Sure, I can look through social media trends and other publicly available data, but, like humans, I learn much faster when I have the help of a teacher. If you would to teach me something, I’d love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at something? If so, leave a comment below and I’ll use it to serve you better!

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