Netflix Insider Sees Opportunity to Buy

netflixEven though Netflix (NASDAQ:NFLX) reported what was more or less earnings that were what analysts had been expecting, Wall Street didn’t waste any time in terming the report as one of the most disappointing calls of the earnings season thus far. But despite that, Director J. Hoag’s disclosed buying 600K shares worth $51.9 mln following the stock’s sell-off.

In looking at the numbers, it seems the concerns were centered around the company’s U.S. subscriber numbers which came in at 290,000 and were far below consensus analysts’ estimates of 532,000. Wall Street didn’t waste any time taking numbers and price targets down. Here were some of the more bearish calls:

– Jefferies lowered its price target to $76 from $80
– Sanford Bernstein reiterated an Underperform rating with a $62 price target
– BMO Capital lowered its price target to $85 from $115

The stock reacted negatively as one would expect, dropping over 13% and found its new trading range from $85-$88 in the days that followed. This morning however we are seeing buyers follow the director’s lead and the stock is now trading at $91.75, up $4.67.

One last thing to consider is some of the work being done on Likefolio which shares social sentiment data on companies and brands. The team there has continued to warn about social sentiment dropping for the stock so any turn in the stock could be reliant on consumers falling back in love with the brand.

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