Interactive Brokers shares jump as it secures spot in S&P 500
In a recent transaction, Gregory K. Peters, Co-CEO of Netflix Inc. (NASDAQ:NFLX), sold 4,186 shares of the company's common stock. The sale, executed on October 18, 2024, was made at a price of $750 per share, totaling approximately $3.14 million. This transaction was conducted under a pre-established Rule 10b5-1 trading plan.
Prior to the sale, Peters exercised a stock option to acquire the same number of shares at a price of $162.99 per share, amounting to a total value of $682,276. Following these transactions, Peters now holds 13,090 shares of Netflix stock.
In other recent news, Netflix has been making headlines with robust third-quarter performance, with the addition of 5 million new subscribers exceeding analysts' expectations. The streaming giant's revenue guidance for 2025 projects an increase of 11-13%, a slight deceleration compared to the estimated 15% growth in 2024. Global investment banking firm, Jefferies, is optimistic about Netflix's future, raising its price target to $800 and maintaining a Buy rating. The firm anticipates a surge of over 10 million subscribers in the fourth quarter, driven by a strong content lineup.
Despite Jefferies' positive outlook, Barclays maintained an Underweight rating on Netflix, expressing concern about potential non-linear growth. On the other hand, KeyBanc maintained an Overweight rating and raised the price target to $785, highlighting projected revenue growth and an operating margin of 28% for 2025. TD Cowen also raised its price target to $835, applauding the company's higher-than-expected number of new subscribers, while Oppenheimer increased its price target to $825, reflecting confidence in Netflix's growth trajectory.
Recent developments also include Netflix's price increases in several EMEA markets and Japan, and a 35% quarter over quarter increase in membership for its ad-supported plan. While advertising is not expected to be a primary growth driver for 2025, Jefferies believes it could still generate over $1 billion in additional revenue, contributing to the company's growth. These recent events underscore Netflix's evolving business strategy and market positioning.
InvestingPro Insights
Gregory K. Peters' recent stock sale comes at a time when Netflix is experiencing strong market performance. According to InvestingPro data, Netflix's stock has shown impressive returns, with a 92.56% price total return over the past year and a 39.1% return in the last six months. The company's shares are currently trading near their 52-week high, with a price that is 99.89% of the highest point reached in the past year.
These robust returns align with Netflix's solid financial performance. The company reported a revenue of $37.59 billion for the last twelve months as of Q3 2024, with a healthy revenue growth of 14.8%. Netflix's profitability is also noteworthy, with an operating income margin of 25.65% and a gross profit margin of 45.25% for the same period.
InvestingPro Tips highlight that Netflix is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.56. This suggests that the stock may be undervalued considering its growth prospects. Additionally, the company operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, indicating a strong financial position.
It's worth noting that 25 analysts have revised their earnings upwards for Netflix's upcoming period, which could be a positive signal for investors. For those interested in a deeper analysis, InvestingPro offers 21 additional tips for Netflix, providing a comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.