The stock of Netflix, Inc. (NASDAQ:NFLX) is now priced at $556.55 and the shares are 26.99 points up or 5.1% higher compared to its previous closing price of $529.56. The stock had 9.466 million contracts set over the past session. NFLX shares’ daily volume is compared to its average trading volume at 7.166 million shares. However, it has a float of 434 million and although its performance was 13.45% over the week, it’s one to watch. Analysts have given the NFLX stock a yearly average price target of $458.03 per share. It means the stock’s downside potential is -17.7% with the NFLX share price recently placing at $532.45 to $557.39. However, some brokerage firms have priced the stock below the average, including one that has called $220.
The shorts are running away from the Netflix, Inc. stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the NFLX shares have declined. Short interest in the stock represents just 2.22% of its float, but the volume has dropped by -992302. The volume of shorted shares dropped to 9.633 million from 10.626 million shares over the last two weeks. The average intraday trading volume has been 4.576 million shares, which means that days to cover moved to roughly 2.105137.
In the last trading session, Netflix, Inc. (NASDAQ:NFLX) raised by $65.97 over the week and gained $46.91 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $575.37. The stock recorded its established 52-week high on 07/13/20.
Since 09/24/19, the stock has traded to a low of $252.28 at 120.61%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 0.97. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Netflix, Inc.’s two-week RSI is 66.54. This suggests that the stock is neutral at the moment and that NFLX shares’ price movement remains stable. The stochastic readings are equally revealing at 81.26% meaning the NFLX share price is currently in oversold territory.
The technical chart shows that the NFLX stock will likely settle at between $565.14 and $573.74 per share. However, if the stock dips below $540.2, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $523.86.
Currently, the stock is trading in the green of MACD, with a reading of 19.62. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at Loop Capital though raised target price of NFLX stock from $500 to $600 but maintained Buy recommendation in their July 29 review. Wells Fargo analysts see the stock as a Equal Weight, but they also raised the share’s target price from $460 to $470 in a flash note released to investors on July 17. UBS analysts see the stock as Neutral. Nonetheless, the analysts revised the share prices down on July 17, placing it at $500 from $535.
The average rating for the NFLX equity is 2.29 and is currently gathering a bullish momentum. Of 41 analysts tracking Netflix, Inc. polled by Reuters, 11 rated NFLX as a hold. The remaining 30 analysts were split evenly. However, the split wasn’t equal as a majority (25) rated it as a buy or strong buy. 5 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the NFLX stock price is 63.25X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands at 94 above the group’s average of 36.4. Netflix, Inc. has its P/E ratio at 26.3, which means that the stock is currently trading at a premium relative to the 3.6 industry average.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Netflix, Inc. (NASDAQ:NFLX) will increase by about 3.45%, which will see them reach $6360 million. The company’s full-year revenues are, however, expected to increase by about 23.41%, up from $20200 million to $24900 million. NFLX’s expected adjusted earnings should surge almost 44.22% to end up at $2.12 per share, while for the fiscal year, analysts project the company’s earnings to grow by about 49.64% to record $6.18/share.