Netflix, Inc. (NASDAQ: NFLX) released a lot of big numbers this week, leaving analysts with nothing else to do but rate the stock a Buy.
Yesterday, the streaming media service reported that they had over 65 million subscribers, of which 42 million are US based and 23 million are international. The company also projects that they will reach 69 million subscribers as soon as the end of the third quarter.
In addition to these hefty subscriber numbers, Netflix, Inc. also reported that revenue for Q2 had increased from $1.223 billion last year to $1.481 billion this year.
Following these announcements, analyst Heath Terry of Goldman Sachs reiterated his Buy rating and increased his price target from $111 to $140. Terry commented on the increase in subscribers noting, “subscriber growth benefitted from the strongest content quarter the company has had to date and adoption in earlier stage int’l markets.” Terry is optimistic about the stock and foresees even more growth if the company creates “significant shareholder value by replicating its model globally, driving scale benefits, and expanding margins.”
According to TipRanks.com Terry has a 60% success rate recommending stocks, with a +17.1% average return per rating.
In addition to Terry, FBR capital analyst Barton Crockett reiterated his Buy rating with a $142 price target and RBC Capital analyst Mark Mahaney reiterated his Buy rating with a price target of $125.
However, according to the latest corporate insider activity in the last three months, Director Jay Hoag has actively sold over $9 million worth of shares. Overall corporate insider sentiment on the stock is negative which is significantly lower than the average sentiment of the sector.
Based on 22 analysts ratings, the overall analyst consensus on the stock is Moderate Buy.
Today Neflix, Inc. opened at 111.02, close to its 52 week high of 111.10.