Netflix, Inc. (NFLX) Stock: Is This Service Sector Stock Worth Your Attention?

0

Netflix, Inc. (NFLX) is trending down in the market in today’s trading session. The stock, one that is focused in the service space, is currently priced at $361.01 after tumbling -4.46% so far today. As it relates to service sector companies, there are several aspects that have the ability to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines associated with NFLX:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Mar-24-19 09:18PM Dow Jones Futures Reverse Lower; Apple Streaming, Boeing In Focus
05:14PM Netflix By The Numbers
05:07PM Bulls & Bears Of The Week: Boeing, Facebook, Fox, Netflix, Starbucks And More
08:15AM These 3 Tech Titans Are Still Buys, But Here’s Why You Should Be Wary
07:37AM Why Apple Won’t Be the Next Netflix

Nonetheless, any time investors are making an investing decision, prospective investors should take a look at much more than just news, this is especially the case in the ever highly complex service industry. Here’s what’s happening in regard to Netflix, Inc..

Returns That NFLX Investors Have Seen

While a decline in a single session, like the fall that we’re seeing from Netflix, Inc. might make some investors upset, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It’s generally smart to take a look at trends beyond a single trading day. In the case of NFLX, here are the returns that we’ve seen:

  • Past 5 Sessions – Throughout the last five trading sessions, NFLX has produced a price change that amounts to -0.12%.
  • Monthly – The performance from Netflix, Inc. throughout the past 30 days has been 1.13%.
  • Past Quarter – In the past three months, the stock has produced a ROI that works out to 35.33%
  • Past 6 Months – In the past six months, we’ve seen a performance that equates to -1.62% from the company.
  • This Year So Far – Since the the last trading session of last year NFLX has generated a return of 34.88%.
  • Full Year – Finally, in the last year, we’ve seen performance that works out to 14.07% from NFLX. Throughout this period, the stock has traded at a high price of -14.70% and a low of 56.13%.

Ratios To Watch

Digging into various ratios having to do with a company can give prospective traders an understanding of how dangerous and/or potentially profitable a an investment option may be. Below are some of the key ratios to consider when looking at NFLX.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. The higher this short ratio, the more investors have a belief that the value of the stock is going to go down. In general, strong service sector stocks tend to have a lower short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, with regard to Netflix, Inc., the stock’s short ratio is 1.45.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure whether or not a company can cover its debts as they mature with only current assets or quick assets. come with positive quick and current ratios. In terms of NFLX, the quick and current ratios total up to 1.50 and 1.50 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the share price. In the case of Netflix, Inc., that ratio works out to 12.00.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value is 0.

Is Big Money Interested In Netflix, Inc.

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in NFLX, here’s what we’re seeing:

Institutions own 77.10% of the company. Institutional interest has moved by 1.74% over the past three months. When it comes to insiders, those who are close to the company currently own 1.74% percent of NFLX shares. Institutions have seen ownership changes of an accumulative -7.17% over the last three months.

What Analysts Say About Netflix, Inc.

Although it’s never a smart idea to blindly follow the thoughts 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 are the recent moves that we’ve seen from analysts with regard to NFLX.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

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

Financial Performance

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 You Need To Know About Share Counts

Traders seem to like to know the counts of shares both outstanding and available. In regard to Netflix, Inc., currently there are 456.99M with a float of 428.95M. These data mean that out of the total of 456.99M shares of NFLX in existence today, 428.95M are available to be traded 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%.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Are You Interested In Helping An AI Become Better?

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

LEAVE A REPLY

Please enter your comment!
Please enter your name here